Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr22.09B
• Dividend Yield: 2%
• Average Volume (3M): 326.95K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.06
• Revenue Growth: -3.46%
• EPS Growth: 12.20%
• Country: SE
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 2.30
• Shares Outstanding: 261,729,770
• 10 Day Avg. Volume: 326,432
• 30 Day Avg. Volume: 326,946
• PEG Ratio: -0.78
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.69
• 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: 20.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: kr83.00 ▲(10.81%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 a leading Nordic construction and civil engineering company headquartered in Sweden. It operates primarily in the construction, civil engineering, industry, and project development sectors. Peab is involved in a wide range of activities, including residential, commercial, and infrastructure projects. The company is known for its commitment to sustainable construction practices and delivering high-quality services across the Nordic countries.

How the Company Makes Money

Peab AB generates revenue through its diversified operations in the construction and civil engineering sectors. The company earns money by undertaking construction projects for residential and commercial buildings, as well as infrastructure developments such as roads and bridges. Peab also has significant operations in industry, providing materials like asphalt and concrete, which are essential for construction activities. Additionally, the company engages in project development, where it invests in and develops properties that are later sold or leased. Strategic partnerships and long-term contracts with government bodies and private sector clients also contribute to Peab's revenue streams. Sustainable practices and a strong presence in the Nordic region enhance its market position and profitability.

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

Peab AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.90
• 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 74.9 is below the 20-day moving average (MA) of 75.46, below the 50-day MA of 79.10, and below the 200-day MA of 78.07, indicating a bearish trend. The MACD of -1.38 indicates Negative momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 38.24 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
SKA.B	78 Outperform	kr95.18B	15.42	10.55%	3.46%	8.54%	32.65%
NCC.B	75 Outperform	kr16.58B	11.96	20.77%	4.17%	6.35%	9.38%
NCC.A	68 Neutral	kr16.58B	12.13		4.09%	6.35%	9.38%
Sector *	65 Neutral	$11.18B	15.79	5.49%	1.92%	3.14%	-24.90%
BMAX	63 Neutral	kr3.59B	23.34	6.68%	1.24%	4.40%	7603.52%
PEAB.B	63 Neutral	kr22.09B	13.98	10.37%	2.00%	-3.46%	12.20%
VESTUM	59 Neutral	kr3.92B	―	-1.10%	―	-25.66%	62.75%

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.

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.