Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr22.03B
• Dividend Yield: 3.48%
• 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: 70 Outperform
• Price Target: kr87.00 ▲(10.27% Upside)

Peab AB's stock score is driven by a stable financial position and positive technical indicators, despite challenges in revenue growth and profitability. The stock's valuation is fair, offering a reasonable P/E ratio and dividend yield. Technical analysis suggests strong momentum, although caution is advised due to overbought signals.

Positive Factors

Diversified Revenue Base

A diversified revenue base across public and private sectors provides financial stability and reduces dependency on a single income stream.

Sustainable Solutions Focus

Emphasizing sustainability and innovation positions Peab as a leader in eco-friendly construction, aligning with long-term industry trends.

Manageable Leverage

Maintaining manageable leverage ensures financial flexibility and reduces risk, supporting long-term operational stability.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates challenges in market expansion and sales, potentially affecting future profitability.

Decreased Profitability

Decreased profitability reflects operational inefficiencies and could impact the company's ability to reinvest in growth initiatives.

Decline in Cash Flow

A decline in cash flow generation may limit the company's ability to fund new projects and manage financial obligations effectively.

Peab AB Business Overview & Revenue Model

Company Description

Peab AB (PEAB.B) 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 across various sectors including residential, commercial, and infrastructure projects. Peab is involved in building construction, civil engineering, and project development, with a strong focus on sustainable solutions and innovation in the construction industry.

How the Company Makes Money

Peab AB generates revenue through multiple key streams including construction contracts, civil engineering projects, and real estate development. The company undertakes both public and private sector projects, which provides a diversified revenue base. A significant portion of the income comes from long-term contracts with municipalities and government bodies for infrastructure projects. Additionally, Peab engages in property development, where it builds and sells residential and commercial properties. Strategic partnerships with local governments and other companies enhance its project portfolio and ensure a steady flow of contracts, contributing to its financial stability and growth.

Peab AB Financial Statement Overview

Summary

Peab AB demonstrates a stable financial position with manageable leverage and a solid equity base. However, the company faces challenges in revenue growth and profitability, as reflected in declining margins and cash flow generation. Continued focus on improving operational efficiency and cash management will be crucial for future growth.

Income Statement

Peab AB's income statement shows a mixed performance. The gross profit margin has slightly improved to 10.03% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 2.64%, reflecting a decline in profitability. Revenue has contracted by 6.16% in the TTM, suggesting challenges in maintaining sales growth. The EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.87, showing a manageable level of leverage. The return on equity has decreased to 9.85% in the TTM, indicating reduced profitability for shareholders. The equity ratio remains healthy at approximately 33.84%, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 6.12% in the TTM, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 0.16, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio of 0.78 indicates a reasonable level of cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.43B	61.28B	61.60B	61.93B	58.92B	59.85B
Gross Profit	6.06B	5.88B	5.42B	5.59B	5.90B	6.14B
EBITDA	4.94B	5.25B	5.02B	4.35B	4.74B	5.00B
Net Income	1.65B	2.39B	1.99B	1.83B	2.38B	3.18B
Balance Sheet
Total Assets	47.17B	47.77B	51.54B	51.01B	47.17B	42.16B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.48B	1.24B	1.51B	2.95B	968.00M
Total Debt	12.63B	14.37B	18.42B	19.80B	15.02B	11.99B
Total Liabilities	31.18B	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	2.47B	4.57B	2.66B	-3.00B	1.74B	6.75B
Operating Cash Flow	3.44B	5.50B	3.92B	-1.56B	2.82B	7.69B
Investing Cash Flow	1.48B	1.25B	-1.26B	-1.60B	-1.77B	-3.94B
Financing Cash Flow	-3.94B	-6.52B	-2.92B	1.69B	907.00M	-3.11B

Peab AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PEAB.B, the sentiment is Positive. The current price of 78.9 is above the 20-day moving average (MA) of 76.85, above the 50-day MA of 75.89, and above the 200-day MA of 75.92, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	€19.04B	13.20	―	4.21%	5.68%	27.52%
NCC.B	75 Outperform	kr19.04B	13.21	20.30%	4.17%	5.68%	27.52%
PEAB.B	70 Outperform	kr22.03B	13.06	10.55%	3.48%	-4.93%	10.91%
SKA.B	67 Neutral	kr106.92B	17.32	10.45%	3.33%	6.02%	26.26%
SWEC.B	66 Neutral	kr60.36B	27.91	18.65%	2.07%	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	―	4.64%	-4.21%	10.63%

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.