Peab AB (PEAB.B) AI Stock Analysis

• Market Cap: kr30.88B
• Dividend Yield: 3.26%
• Average Volume (3M): 237.83K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.85
• Revenue Growth: -4.93%
• EPS Growth: 10.91%
• Country: SE
• Employees: 13,000
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 2.71
• Shares Outstanding: 261,729,770
• 10 Day Avg. Volume: 278,571
• 30 Day Avg. Volume: 237,832
• PEG Ratio: -0.41
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 8.45
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.39
• Revenue Forecast (FY): kr61.03B

• Rating: 61 Neutral
• Price Target: kr104.00 ▲(21.42% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is primarily driven by stable-but-not-high-quality fundamentals: improving leverage and generally positive cash generation are offset by margin compression and weaker returns. Technically, the trend is strong, but overbought signals raise near-term risk. Valuation looks reasonable but not particularly cheap, with a moderate dividend yield.

Positive Factors

Improved Leverage

Debt-to-equity falling to 0.71x and equity growth materially reduce balance-sheet risk, improving financial flexibility. A stronger balance sheet supports bidding for larger public projects, cushions cyclical downturns, and enables capital allocation to capex, dividends or debt reduction over the medium term.

Diversified, Public-Sector Revenue Base

A revenue mix across construction, civil engineering and property development, plus long-term municipal and government contracts, provides durable backlog and smoother cash flows. This reduces cyclical exposure versus pure residential players and aids predictable multi-year project pipelines and planning.

Solid Free Cash Flow

Consistent positive operating and free cash flow, with FCF of SEK 2.9bn in 2025, demonstrates meaningful internal cash generation. This supports funding for working capital, capex and debt paydown, enhancing resilience and lowering dependence on external financing over the medium term.

Negative Factors

Margin Compression

Net margin falling to 2.3% and ROE declining to 8.3% indicate weaker profitability that limits internal returns and reinvestment capacity. Persistently lower margins reduce the buffer for cost overruns, constrain pricing power on competitive bids, and pressure long-term shareholder returns.

Top-line Volatility

A multi-year period of flat revenues then a sizable single-year rebound signals sensitivity to project timing and cyclical demand. Irregular top-line trends reduce multi-year visibility for capacity planning, add execution risk for long projects, and increase dependence on timing of public-sector awards.

Cash Conversion Volatility

FCF at ~74% of net income and a drop in operating cash flow versus 2024 show working-capital sensitivity and uneven cash conversion. This variability can constrain funding for large projects, make capital allocation harder, and raise refinancing or liquidity risk if project timings deteriorate.

Peab AB Business Overview & Revenue Model

Company Description

Peab AB (publ) operates as a construction and civil engineering company in Sweden, Norway, and Finland. It operates through Construction, Civil Engineering, Industry, and Project Development segments. The Construction segment constructs homes, and public and commercial properties; and provides renovation, rebuilding, extension, and construction services. The Civil Engineering segment constructs and maintains roads, railroads, bridges, tunnels, ports, and other infrastructure. This segment also undertakes landscaping, pipeline, and foundation works; operates and maintains national and municipal highways and street networks, as well as cares for parks and outdoor properties; and operates water and sewage supply networks. The Industry segment offers products and services for construction and civil engineering projects. It provides mineral aggregates, concrete and paving products, and temporary electricity to prefabricated concrete elements. This segment also rents cranes and machines; distributes binders to the concrete industry; provides transportation services; and recycles production waste and excavated soil. The Project Development segment acquires, develops, and divests residential and commercial properties, and city blocks. It also rents apartment buildings and single homes. Peab AB (publ) was founded in 1959 and is headquartered in Förslöv, Sweden.

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

Balance sheet risk has improved with materially lower leverage (debt-to-equity down to 0.71x in 2025) and generally positive operating/free cash flow. Offsetting this, profitability has compressed (net margin down to 2.3% in 2025) and earnings/returns have been volatile, with ROE down to 8.3%.

Income Statement

Revenue has been broadly flat from 2020–2024, followed by a sharp rebound in 2025 (+25.7%), suggesting a stronger top-line tailwind recently. Profitability, however, has compressed versus prior years: net margin declined from 5.3% (2020) / 4.0% (2021) to 2.3% (2025), with operating profitability also lower than the 2020–2021 range. Earnings were notably stronger in 2024 than 2025, pointing to some volatility in execution and/or cost pressure despite the higher 2025 revenue base.

Balance Sheet

Leverage has improved meaningfully: debt relative to equity moved down from elevated levels in 2022–2023 (above 1.2x) to 0.71x in 2025, reducing balance-sheet risk. Equity has also grown since 2022, supporting resilience. The trade-off is weaker shareholder returns recently, with return on equity down to 8.3% in 2025 from mid-teens levels in 2022–2024 (and higher earlier), consistent with the lower profitability profile.

Cash Flow

Cash generation is generally supportive, with positive operating cash flow and free cash flow in most years and a strong rebound after the 2022 outflow year. In 2025, free cash flow of 2.9bn is solid and improved versus 2023, but operating cash flow declined versus 2024, indicating some year-to-year working-capital or cash conversion volatility. Free cash flow remains meaningfully below net income in recent years (about 74% in 2025), which is acceptable but not best-in-class consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.58B	61.28B	61.60B	61.93B	58.92B
Gross Profit	5.53B	5.88B	5.42B	5.59B	5.90B
EBITDA	4.30B	5.25B	5.02B	4.35B	4.74B
Net Income	1.37B	2.39B	1.99B	1.83B	2.38B
Balance Sheet
Total Assets	44.54B	47.77B	51.54B	51.01B	47.17B
Cash, Cash Equivalents and Short-Term Investments	3.15B	1.48B	1.24B	1.51B	2.95B
Total Debt	11.64B	14.37B	18.42B	19.80B	15.02B
Total Liabilities	28.06B	31.26B	37.07B	37.23B	33.49B
Stockholders Equity	16.45B	16.48B	14.45B	13.77B	13.68B
Cash Flow
Free Cash Flow	2.89B	4.57B	2.66B	-3.00B	1.74B
Operating Cash Flow	3.92B	5.50B	3.92B	-1.56B	2.82B
Investing Cash Flow	971.00M	1.25B	-1.26B	-1.60B	-1.77B
Financing Cash Flow	-3.23B	-6.52B	-2.92B	1.69B	907.00M

Peab AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 85.65 is below the 20-day moving average (MA) of 102.53, below the 50-day MA of 93.20, and above the 200-day MA of 80.50, indicating a neutral trend. The MACD of 3.59 indicates Positive momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, 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
SKA.B	68 Neutral	kr111.15B	18.26	10.45%	3.18%	6.02%	26.26%
SWEC.B	65 Neutral	kr50.48B	24.43	18.65%	2.20%	2.79%	14.00%
PEAB.B	61 Neutral	kr30.88B	17.86	10.55%	3.26%	-4.93%	10.91%
BRAV	57 Neutral	kr20.43B	14.91	―	4.22%	-4.21%	10.63%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
NCC.B	54 Neutral	kr18.80B	151.66	20.30%	4.17%	5.68%	27.52%

Peab AB Corporate Events

Peab Ends 2025 with Strong Quarter, Lower Debt and Higher Dividend

Peab reported a strong finish to 2025, with continued growth in net sales and operating margin in its construction contract operations and significant margin improvement in its Swerock/Asphalt business, underpinning a stable order situation and solid financial position going into 2026. For the full year, net sales were broadly unchanged at SEK 58.6 billion while operating profit and margin eased slightly, in part due to a SEK 611 million negative impact from a settlement related to the Mall of Scandinavia, but the group strengthened its balance sheet by reducing net debt to SEK 6.4 billion, improving its net debt/equity ratio to 0.4, expanding its order backlog to SEK 48.5 billion, and proposing a higher dividend of SEK 3.30 per share, signaling confidence despite lower earnings per share.

The most recent analyst rating on ($SE:PEAB.B) stock is a Buy with a SEK99.00 price target. To see the full list of analyst forecasts on Peab AB stock, see the SE:PEAB.B Stock Forecast page.