OB:VEI

Stock Analysis Report

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Executive Summary

Veidekke ASA operates as a construction and property development company in Norway, Sweden, and Denmark. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VEI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.8%

VEI

-3.7%

NO Construction

-4.6%

NO Market


1 Year Return

6.7%

VEI

-23.3%

NO Construction

-12.3%

NO Market

Return vs Industry: VEI exceeded the Norwegian Construction industry which returned -21.5% over the past year.

Return vs Market: VEI exceeded the Norwegian Market which returned -8.8% over the past year.


Shareholder returns

VEIIndustryMarket
7 Day-6.8%-3.7%-4.6%
30 Day-6.7%-0.9%-1.3%
90 Day-11.9%-6.4%-0.9%
1 Year6.7%6.7%-20.9%-23.3%-9.4%-12.3%
3 Year31.5%18.4%-15.1%-23.0%-0.04%-11.3%
5 Year22.6%2.1%4.0%-11.8%38.3%10.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEI (NOK109.2) is trading below our estimate of fair value (NOK150.4)

Significantly Below Fair Value: VEI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VEI is poor value based on its PE Ratio (40.9x) compared to the XE Construction industry average (10.3x).

PE vs Market: VEI is poor value based on its PE Ratio (40.9x) compared to the Norwegian market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: VEI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VEI is overvalued based on its PB Ratio (3.4x) compared to the XE Construction industry average (1x).


Next Steps

Future Growth

How is Veidekke forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEI's earnings are forecast to decline over the next 3 years (-18.8% per year).

Earnings vs Market: VEI's earnings are forecast to decline over the next 3 years (-18.8% per year).

High Growth Earnings: VEI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VEI's revenue (0.8% per year) is forecast to grow slower than the Norwegian market (5.5% per year).

High Growth Revenue: VEI's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEI's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Veidekke performed over the past 5 years?

-17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEI has high quality earnings.

Growing Profit Margin: VEI's current net profit margins (1%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: VEI's earnings have declined by 17.9% per year over the past 5 years.

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

Earnings vs Industry: VEI had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Construction industry average (2.1%).


Return on Equity

High ROE: VEI's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Veidekke's financial position?


Financial Position Analysis

Short Term Liabilities: VEI's short term assets (NOK16.4B) exceed its short term liabilities (NOK14.1B).

Long Term Liabilities: VEI's short term assets (NOK16.4B) exceed its long term liabilities (NOK4.4B).


Debt to Equity History and Analysis

Debt Level: VEI's debt to equity ratio (36.1%) is considered satisfactory.

Reducing Debt: VEI's debt to equity ratio has reduced from 82% to 36.1% over the past 5 years.

Debt Coverage: VEI's debt is well covered by operating cash flow (74.2%).

Interest Coverage: VEI's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Next Steps

Dividend

What is Veidekke current dividend yield, its reliability and sustainability?

10.46%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VEI'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 VEI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: VEI is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Jimmy Bengtsson (54 yo)

1.08yrs

Tenure

kr3,733,000

Compensation

Mr. Jimmy Bengtsson serves as Group Chief Executive Officer of Veidekke ASA since September 1,2019. Mr. Bengtsson served as Executive Vice President of Construction Sweden at Veidekke ASA since January 1, ...


CEO Compensation Analysis

Compensation vs Market: Jimmy's total compensation ($USD404.26K) is about average for companies of similar size in the Norwegian market ($USD561.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jimmy Bengtsson
Group Chief Executive Officer1.08yrskr3.73m0.036%
NOK 5.6m
Jørgen Porsmyr
Executive VP & CFO0.17yrkr3.42m0.081%
NOK 12.4m
Anne Thorbjørnsen
Executive VP for HR & OHS2yrskr2.33m0.022%
NOK 3.3m
Terje Larsen
Executive Vice President of Risk Management & IT0.17yrkr2.92m0.083%
NOK 12.7m
Lars Lund
Executive Vice President of Strategy & Sustainability0.75yrkr2.63m0.011%
NOK 1.6m
Hans Sørlie
Executive Vice President of Building Construction Norway2.25yrskr3.11m0.053%
NOK 8.1m
Øivind Larsen
Executive Vice President of Veidekke Infrastructure2.33yrskr2.57m0.0060%
NOK 920.3k
Mats Nyström
Executive Vice President of Veidekke Sweden1.08yrskr3.09m0.015%
NOK 2.3m
Siv Solheim
Senior Vice President of Accounting & Controllingno datano data0.0060%
NOK 921.8k
Jørgen Michelet
Head of Finance & IRno datano datano data
Kristina Andreasson
Executive Vice President of Communications & Branding0.083yrno datano data
Torben Nielsen
Head of Operations in Denmarkno datakr800.00kno data

1.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VEI's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Per-Ingemar Persson
Director0.75yrkr3.93mno data
Ingalill Berglund
Director4.75yrskr350.00k0.0019%
NOK 283.7k
Svein Brandtzæg
Chairman of the Board1.42yrsno data0.0017%
NOK 260.7k
Gro Bakstad
Director10.75yrskr380.00k0.011%
NOK 1.8m
Hanne Rønneberg
Director0.75yrno datano data
Inge Ramsdal
Employee Representative Director12.75yrskr1.01m0.0061%
NOK 941.7k
Ingolv Høyland
Director3.75yrskr350.00k0.0044%
NOK 681.0k
Odd Olsen
Employee Representative Director9.75yrskr1.14m0.0036%
NOK 546.0k
Daniel Siraj
Director2.42yrskr331.00kno data
Arve Fludal
Employee Representative Director5.42yrskr1.10m0.0061%
NOK 931.0k

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: VEI's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VEI insiders have sold more shares than they have bought 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

Veidekke ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veidekke ASA
  • Ticker: VEI
  • Exchange: OB
  • Founded: 1936
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr15.338b
  • Shares outstanding: 135.02m
  • Website: https://www.veidekke.com

Number of Employees


Location

  • Veidekke ASA
  • Skabos vei 4
  • Oslo
  • Oslo
  • 214
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEIOB (Oslo Bors)YesCommon SharesNONOKJun 1992
0GF6LSE (London Stock Exchange)YesCommon SharesGBNOKJun 1992
VK4DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1992
VEIOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKJun 1992

Biography

Veidekke ASA operates as a construction and property development company in Norway, Sweden, and Denmark. The company operates through Construction and Industrial segments. It undertakes various building co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 21:40
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.