Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr22.03B
• Dividend Yield: 3.73%
• Average Volume (3M): 237.83K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.00
• Revenue Growth: -4.93%
• EPS Growth: 10.91%
• Country: SE
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.00
• Shares Outstanding: 261,729,770
• 10 Day Avg. Volume: 278,571
• 30 Day Avg. Volume: 237,832
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr79.00 ▲(7.26% Upside)

Peab AB's stock score is primarily influenced by its stable financial performance, despite some challenges in revenue and cash flow. Technical analysis suggests a neutral trend, while valuation metrics indicate a fair price. The absence of earnings call data and corporate events limits additional insights.

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 shows stable profit margins and a balanced leverage position, but faces challenges with declining revenue growth and free cash flow. The company needs to address these issues to ensure long-term stability.

Income Statement

Peab AB's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 3.08%, which is concerning. However, the company maintains a stable gross profit margin of 10.03% and a net profit margin of 2.64%. The EBIT and EBITDA margins are also reasonably healthy at 5.21% and 7.67%, respectively. Despite the revenue decline, the company has managed to sustain its profitability margins, which is a positive sign.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.87, indicating a balanced leverage position. Return on equity (ROE) stands at 9.85%, showing decent profitability relative to shareholder equity. The equity ratio is 32.74%, suggesting a stable capital structure. While the company has managed its debt well, the ROE has decreased compared to previous years, which could be a point of concern.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate has significantly declined by 45.49% in the TTM period, indicating potential cash flow issues. The operating cash flow to net income ratio is 0.16, and the free cash flow to net income ratio is 0.78, suggesting that cash generation from operations is not as strong as it could be. This could pose risks to liquidity if not addressed.

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: 73.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 73.65 is below the 20-day moving average (MA) of 75.45, below the 50-day MA of 75.05, and below the 200-day MA of 76.06, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 6.49 is Positive, 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
SKA.B	71 Outperform	kr106.92B	17.32	10.45%	3.30%	6.02%	26.26%
NCC.B	70 Neutral	kr19.04B	13.21	20.30%	4.38%	5.68%	27.52%
NCC.A	68 Neutral	€19.04B	13.20	―	4.33%	5.68%	27.52%
SWEC.B	65 Neutral	kr60.36B	27.91	18.65%	2.04%	2.79%	14.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BRAV	62 Neutral	kr16.14B	13.90	―	4.72%	-4.21%	10.63%
PEAB.B	59 Neutral	kr22.03B	13.06	10.55%	3.73%	-4.93%	10.91%

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.