DB:PEKB

Stock Analysis Report

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Executive Summary

Peab AB (publ) operates as a construction and civil engineering company primarily in Sweden, Norway, and Finland.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Peab's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PEKB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

PEKB

9.5%

DE Construction

6.8%

DE Market


1 Year Return

8.6%

PEKB

-20.4%

DE Construction

5.6%

DE Market

Return vs Industry: PEKB exceeded the German Construction industry which returned -19.7% over the past year.

Return vs Market: PEKB exceeded the German Market which returned 4.4% over the past year.


Shareholder returns

PEKBIndustryMarket
7 Day10.1%9.5%6.8%
30 Day14.5%26.9%14.0%
90 Day-10.1%7.7%7.5%
1 Year8.6%8.6%-14.0%-20.4%7.4%5.6%
3 Year-15.9%-24.9%-39.8%-47.7%0.3%-7.3%
5 Year41.7%17.1%49.2%25.9%12.4%-2.0%

Price Volatility Vs. Market

How volatile is Peab's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Peab undervalued compared to its fair value and its price relative to the market?

16.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PEKB (€7.87) is trading above our estimate of fair value (€4.48)

Significantly Below Fair Value: PEKB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PEKB is poor value based on its PE Ratio (16.2x) compared to the Construction industry average (11x).

PE vs Market: PEKB is good value based on its PE Ratio (16.2x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: PEKB is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: PEKB is overvalued based on its PB Ratio (2.1x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is Peab forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEKB's forecast earnings growth (9.7% per year) is above the savings rate (0.2%).

Earnings vs Market: PEKB's earnings (9.7% per year) are forecast to grow slower than the German market (22.5% per year).

High Growth Earnings: PEKB's earnings are forecast to grow, but not significantly.

Revenue vs Market: PEKB's revenue (3% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: PEKB's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEKB's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Peab performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEKB has a high level of non-cash earnings.

Growing Profit Margin: PEKB's current net profit margins (2.9%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PEKB's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: PEKB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PEKB had negative earnings growth (-39.6%) over the past year, making it difficult to compare to the Construction industry average (7.6%).


Return on Equity

High ROE: PEKB's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Peab's financial position?


Financial Position Analysis

Short Term Liabilities: PEKB's short term assets (SEK31.8B) exceed its short term liabilities (SEK26.4B).

Long Term Liabilities: PEKB's short term assets (SEK31.8B) exceed its long term liabilities (SEK4.8B).


Debt to Equity History and Analysis

Debt Level: PEKB's debt to equity ratio (103.5%) is considered high.

Reducing Debt: PEKB's debt to equity ratio has increased from 67.6% to 103.5% over the past 5 years.

Debt Coverage: PEKB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PEKB's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Peab's current dividend yield, its reliability and sustainability?

4.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PEKB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PEKB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PEKB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PEKB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PEKB is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PEKB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Jesper Göransson (48yo)

no data

Tenure

kr16,823,000

Compensation

Mr. Jesper Göransson serves as the Chief Executive Officer of Peab AB and has been its President since August 2013 and its Member of the Executive Management Advisory Board since July 2009. Mr. Göransson s ...


CEO Compensation Analysis

Compensation vs Market: Jesper's total compensation ($USD1.83M) is about average for companies of similar size in the German market ($USD2.40M).

Compensation vs Earnings: Jesper's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jesper Göransson
CEO & Presidentno datakr16.82m0.36% SEK8.6m
Niclas Winkvist
Chief Financial Officer6.83yrsno data0.13% SEK3.0m
Roger Linnér
Production Manager & COO7yrsno data0.081% SEK1.9m
Charlotte Hagö
Chief Information Officerno datano datano data
Juha Hartomaa
Head of Investor Relationsno datano datano data
Camila Buzaglo
Chief Communications Officer1.58yrsno data0.0029% SEK67.6k
Jan Persson
Head of Peab Supportno datano datano data
Mikael Rydén
Head of Information Technologyno datano datano data
Anders Bogren
Head of Purchasing & Logisticsno datano datano data
Marie Vernersson
Group Controller12.42yrsno datano data

6.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PEKB's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karl-Axel Granlund
Independent Director20.42yrskr600.00k0.0047% SEK112.6k
Göran Grosskopf
Independent Chairman of the Board14.75yrskr1.13m0.44% SEK10.3m
Lars Sköld
Independent Director13.42yrskr600.00k0.0068% SEK160.8k
Mats Paulsson
Vice Chairman9.08yrskr525.00k12.96% SEK307.3m
Malin Persson
Independent Director4.08yrskr450.00k0.00068% SEK16.1k
Fredrik Paulsson
Director 11.08yrskr525.00k0.42% SEK9.9m
Patrik Svensson
Employee Representative Director13.42yrsno datano data
Kim Thomsen
Employee Representative Director12.42yrsno datano data
Kerstin Lindell
Independent Director6.42yrskr525.00k0.0017% SEK40.1k
Egon Waldemarsson
Employee Representative Director4.08yrsno data0.0020% SEK48.1k

11.8yrs

Average Tenure

59yo

Average Age

Experienced Board: PEKB's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PEKB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Peab AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Peab AB (publ)
  • Ticker: PEKB
  • Exchange: DB
  • Founded: 1959
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr24.721b
  • Listing Market Cap: kr2.371b
  • Shares outstanding: 295.00m
  • Website: https://www.peab.com

Number of Employees


Location

  • Peab AB (publ)
  • Margretetorpsvägen 84
  • Förslöv
  • Skåne County
  • 269 73
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEAB BOM (OMX Nordic Exchange Stockholm)YesClass B Registered SharesSESEKMay 1993
0MHTLSE (London Stock Exchange)YesClass B Registered SharesGBSEKMay 1993
PEKBDB (Deutsche Boerse AG)YesClass B Registered SharesDEEURMay 1993
PEABBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B Registered SharesGBSEKMay 1993

Biography

Peab AB (publ) operates as a construction and civil engineering company primarily in Sweden, Norway, and Finland. It operates through four segments: Construction, Civil Engineering, Industry, and Project Development. The Construction segment constructs homes, and public and commercial properties; and provides construction maintenance 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, as well as operates and maintains highways and street networks, parks, outdoor properties, and water and sewage supply networks. The Industry segment offers products and services for construction and civil engineering projects. It provides gravel, rock, concrete, asphalt, machines and transportation, temporary electricity, and prefabricated concrete elements. This segment is also involved in the crane rental and production waste handling activities. The Project Development segment acquires, owns, develops, rents, and divests housing, commercial properties, and city blocks. Peab AB (publ) was founded in 1959 and is headquartered in Förslöv, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 22:41
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.