Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr22.21B
• Dividend Yield: 1.99%
• Average Volume (3M): 252.57K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.05
• Revenue Growth: -3.46%
• EPS Growth: 12.20%
• Country: SE
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 0.25
• Shares Outstanding: 261,729,770
• 10 Day Avg. Volume: 197,733
• 30 Day Avg. Volume: 252,567
• PEG Ratio: 0.47
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 4.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr84.00
• Price Target Upside: 13.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: kr78.00 ▲(5.83% Upside)

Peab AB's overall stock score reflects stable financial performance with some risks due to declining revenue and cash flow. Technical indicators suggest bearish momentum, while valuation metrics indicate reasonable pricing with a modest dividend yield.

Peab AB Business Overview & Revenue Model

Company Description

Peab AB is a leading construction and civil engineering company based in Sweden, operating primarily in the Nordic region. The company provides a wide range of services including construction of residential and commercial properties, infrastructure development, and civil engineering projects. Peab is involved in all stages of the construction process, from planning and design to execution and maintenance, and has a strong focus on sustainability and innovation in its operations.

How the Company Makes Money

Peab AB generates revenue through multiple key streams, primarily from construction contracts for residential, commercial, and infrastructure projects. The company's revenue model is largely based on long-term contracts and partnerships with both public and private sector clients, allowing for stable cash flows. Additionally, Peab earns income from property development activities, where it develops and sells residential and commercial properties. The company also benefits from its civil engineering segment, which includes projects such as road construction, bridges, and tunnels. Significant partnerships with government entities and other large corporations further enhance its revenue potential, as these relationships often lead to large-scale projects. Furthermore, Peab's focus on sustainability and innovation can attract additional projects and clients, contributing to its overall earnings.

Peab AB Financial Statement Overview

Summary

Peab AB demonstrates strong financial health with solid profitability and cash flow generation. Despite slight revenue contractions, the company maintains efficient operations and a well-balanced capital structure, reflecting resilience and effective management in the engineering and construction industry.

Income Statement

Peab AB shows solid profitability with a TTM gross profit margin of 9.64% and a net profit margin of 3.42%. However, the revenue growth is slightly negative compared to the previous year, indicating challenges in maintaining revenue levels. The EBIT and EBITDA margins are healthy at 4.68% and 5.56%, respectively, supporting operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with a moderate debt-to-equity ratio of 0.85, indicating a balanced approach to leveraging. The return on equity stands at 12.99%, showcasing the company's ability to generate returns from shareholders' equity. An equity ratio of 35.32% reflects a solid capital structure with a good asset base.

Cash Flow

Peab AB's cash flow is strong, with a robust free cash flow growth rate of 5.64% TTM. The operating cash flow to net income ratio is 2.71, indicating strong cash generation efficiency. The free cash flow to net income ratio of 2.32 further supports the company's ability to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.79B	61.28B	61.60B	61.93B	58.92B	59.85B
Gross Profit	5.90B	5.88B	5.42B	5.59B	5.90B	6.14B
EBITDA	4.51B	5.25B	5.02B	4.29B	4.74B	5.62B
Net Income	1.55B	2.39B	1.99B	1.83B	2.38B	3.18B
Balance Sheet
Total Assets	46.71B	47.77B	51.54B	51.01B	47.17B	42.16B
Cash, Cash Equivalents and Short-Term Investments	453.00M	1.48B	1.24B	1.51B	2.95B	968.00M
Total Debt	13.33B	14.37B	18.42B	19.80B	15.02B	11.99B
Total Liabilities	31.39B	31.26B	37.07B	37.23B	33.49B	29.72B
Stockholders Equity	15.29B	16.48B	14.45B	13.77B	13.68B	12.44B
Cash Flow
Free Cash Flow	2.63B	4.57B	2.66B	-3.00B	1.74B	6.75B
Operating Cash Flow	3.38B	5.50B	3.92B	-1.56B	2.82B	7.69B
Investing Cash Flow	644.00M	1.25B	-1.26B	-1.60B	-1.77B	-3.94B
Financing Cash Flow	-5.06B	-6.52B	-2.92B	1.69B	907.00M	-3.11B

Peab AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PEAB.B, the sentiment is Negative. The current price of 73.7 is below the 20-day moving average (MA) of 74.49, below the 50-day MA of 76.59, and below the 200-day MA of 78.06, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 49.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PEAB.B.

Peab AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCC.B	76 Outperform	kr17.39B	12.55	20.77%	3.99%	6.35%	9.38%
NCC.A	75 Outperform	€17.39B	12.64		3.92%	6.35%	9.38%
SKA.B	72 Outperform	kr100.41B	16.27	10.55%	3.39%	8.54%	32.65%
BRAV	69 Neutral	kr18.90B	16.97		4.06%	-3.75%	1.20%
SWEC.B	65 Neutral	kr57.02B	27.20	18.81%	2.08%	2.83%	18.23%
PEAB.B	62 Neutral	kr22.21B	14.05	10.37%	1.99%	-3.46%	12.20%
Sector *	60 Neutral	kr42.58B	13.50	1.95%	2.32%	-0.60%	-20.68%

Peab AB Corporate Events

Peab AB Initiates Share Repurchase Program

Peab AB’s Board of Directors has authorized the repurchase of its own shares on Nasdaq Stockholm, starting July 28, 2025, to support its long-term Performance Share Program and potential acquisitions. The repurchase plan, managed by Nordea Bank Abp, will adhere to EU regulations and is capped at SEK 500 million, ensuring the company’s financial stability and strategic flexibility.

The most recent analyst rating on ($SE:PEAB.B) stock is a Buy with a SEK90.00 price target. To see the full list of analyst forecasts on Peab AB stock, see the SE:PEAB.B Stock Forecast page.

Peab AB Reports Stable Performance Amid Sectoral Challenges in H1 2025

Peab AB reported a stable performance in the first half of 2025, with a slight decline in net sales but an increase in operating profit and margin. The company’s civil engineering and premise construction sectors performed well, although a decrease in housing construction affected other areas. A significant financial impact was noted due to a settlement agreement regarding the Mall of Scandinavia, affecting pre-tax profits and earnings per share.

The most recent analyst rating on ($SE:PEAB.B) stock is a Buy with a SEK90.00 price target. To see the full list of analyst forecasts on Peab AB stock, see the SE:PEAB.B Stock Forecast page.

Peab and URW Settle Mall of Scandinavia Dispute with Billion-Krona Agreement

Peab AB and Unibail-Rodamco-Westfield (URW) have reached a settlement agreement concerning the Mall of Scandinavia project, resulting in Peab receiving one billion Swedish kronor. This settlement resolves all legal disputes between the parties, ensuring no further claims or warranty obligations, and stabilizes Peab’s financial position without altering its net debt.

The most recent analyst rating on ($SE:PEAB.B) stock is a Buy with a SEK78.00 price target. To see the full list of analyst forecasts on Peab AB stock, see the SE:PEAB.B Stock Forecast page.