Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr22.80B
• Dividend Yield: 3.88%
• Average Volume (3M): 318.97K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.00
• Revenue Growth: 0.98%
• EPS Growth: 5.01%
• Country: SE
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): -1.21
• Shares Outstanding: 261,729,770
• 10 Day Avg. Volume: 298,064
• 30 Day Avg. Volume: 318,970
• PEG Ratio: -31.37
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.72
• 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: kr90.00
• Price Target Upside: 16.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: kr83.00 ▲(7.37%Upside)

Peab AB's strong financial performance is the primary positive factor, supported by profitability and cash flow strength. However, the technical analysis reveals bearish signals suggesting potential downside risk. The valuation is mixed, with a low P/E ratio indicating value but a high dividend yield raising sustainability concerns. These factors collectively result in an overall stock score of 63.

Peab AB Business Overview & Revenue Model

Company Description

Peab AB is one of the leading construction and civil engineering companies in the Nordic region, headquartered in Sweden. The company operates through four main business segments: Construction, Civil Engineering, Industry, and Project Development. Peab is involved in residential and commercial construction, infrastructure projects, and the production and supply of construction materials. It aims to deliver comprehensive and sustainable solutions across the construction value chain.

How the Company Makes Money

Peab AB generates revenue through its diversified operations in construction, civil engineering, and industry sectors. The Construction segment focuses on building residential, commercial, and public properties, while the Civil Engineering segment manages infrastructure projects such as roads, bridges, and railways. The Industry segment supplies essential construction materials like asphalt, concrete, and gravel, along with offering rental equipment and transportation services. The Project Development segment involves developing and selling residential and commercial properties. Peab's earnings are bolstered by its strategic partnerships and long-term contracts with government entities and private sector clients, ensuring a steady income flow across its operations.

Peab AB Financial Statement Overview

Summary

Peab AB demonstrates strong financial health with efficient operations, solid profitability, and robust cash flow generation. Despite slight revenue contractions, the company maintains 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	60.66B	61.28B	61.60B	61.93B	58.92B	59.85B
Gross Profit	5.85B	5.88B	5.42B	5.59B	5.90B	6.14B
EBITDA	3.37B	5.25B	5.02B	4.29B	4.74B	5.62B
Net Income	2.08B	2.39B	1.99B	1.83B	2.38B	3.18B
Balance Sheet
Total Assets	45.22B	47.77B	51.54B	51.01B	47.17B	42.16B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.48B	1.24B	1.51B	2.95B	968.00M
Total Debt	13.64B	14.37B	18.42B	19.80B	15.02B	11.99B
Total Liabilities	29.22B	31.26B	37.07B	37.23B	33.49B	29.72B
Stockholders Equity	15.97B	16.48B	14.45B	13.77B	13.68B	12.44B
Cash Flow
Free Cash Flow	4.83B	4.57B	2.66B	-3.00B	1.74B	6.75B
Operating Cash Flow	5.62B	5.50B	3.92B	-1.56B	2.82B	7.69B
Investing Cash Flow	656.00M	1.25B	-1.26B	-1.60B	-1.77B	-3.94B
Financing Cash Flow	-5.83B	-6.52B	-2.92B	1.69B	907.00M	-3.11B

Peab AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 77.3 is below the 20-day moving average (MA) of 79.58, below the 50-day MA of 80.19, and below the 200-day MA of 78.34, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.13 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.A	73 Outperform	kr15.82B	11.51		42.89%	9.10%	15.11%
SKA.B	72 Outperform	kr90.74B	14.63	10.49%	3.63%	9.67%	26.69%
NCC.B	67 Neutral	kr15.82B	11.37	19.89%	43.34%	9.10%	15.11%
BMAX	66 Neutral	kr3.05B	30.18	4.29%	1.44%	0.37%	818.34%
Sector *	64 Neutral	kr63.63B	12.55	1.54%	8.67%	0.04%	-3.90%
PEAB.B	63 Neutral	kr22.80B	10.76	13.64%	3.88%	0.98%	5.01%
VESTUM	61 Neutral	kr3.75B	―	-0.63%	―	-23.83%	57.97%

Peab AB Corporate Events

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.

Peab Reports Stable Q1 2025 Amid Global Uncertainties

Peab reported a stable first quarter in 2025 despite global uncertainties, with a high level of orders received and nearly unchanged net sales. The Civil Engineering segment performed well, but the cautious market in new home production affected the Construction and Project Development areas, resulting in a negative operating profit and pre-tax profit.