OB:VEI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

VEI

0.7%

NO Construction

-1.1%

NO Market


1 Year Return

19.7%

VEI

17.4%

NO Construction

-3.9%

NO Market

Return vs Industry: VEI exceeded the Norwegian Construction industry which returned 17.4% over the past year.

Return vs Market: VEI exceeded the Norwegian Market which returned -3.9% over the past year.


Shareholder returns

VEIIndustryMarket
7 Day10.3%0.7%-1.1%
30 Day9.9%3.4%1.3%
90 Day25.1%7.2%7.1%
1 Year26.1%19.7%21.3%17.4%1.2%-3.9%
3 Year5.4%-8.9%34.1%21.8%40.5%22.9%
5 Year114.3%71.8%66.9%35.8%54.1%19.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEI (NOK112.5) is trading below our estimate of fair value (NOK232.06)

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 (15.6x) compared to the Construction industry average (11.1x).

PE vs Market: VEI is poor value based on its PE Ratio (15.6x) compared to the Norwegian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: VEI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: VEI is overvalued based on its PB Ratio (3.9x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

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

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEI's forecast earnings growth (16.9% per year) is above the savings rate (1.8%).

Earnings vs Market: VEI's earnings (16.9% per year) are forecast to grow slower than the Norwegian market (20.9% per year).

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

Revenue vs Market: VEI's revenue (3.1% per year) is forecast to grow slower than the Norwegian market (4.4% per year).

High Growth Revenue: VEI's revenue (3.1% 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 (26%)


Next Steps

Past Performance

How has Veidekke performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: VEI's current net profit margins (2.6%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: VEI's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: VEI's earnings growth over the past year (38.4%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: VEI earnings growth over the past year (38.4%) exceeded the Construction industry 8%.


Return on Equity

High ROE: Whilst VEI's Return on Equity (26.21%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veidekke's financial position?


Financial Position Analysis

Short Term Liabilities: VEI's short term assets (NOK14.7B) exceeds its short term liabilities (NOK12.6B)

Long Term Liabilities: VEI's short term assets (NOK14.7B) exceeds its long term liabilities (6.1B)


Debt to Equity History and Analysis

Debt Level: VEI's debt to equity ratio (136%) is considered high.

Reducing Debt: VEI's debt to equity ratio has increased from 91.4% to 136% over the past 5 years.

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

Interest Coverage: VEI's interest payments on its debt are well covered by EBIT (62x coverage).


Balance Sheet

Inventory Level: VEI has a high level of physical assets or inventory.

Debt Coverage by Assets: VEI's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.5%markettop25%6.0%industryaverage3.5%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: VEI's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.5%).

High Dividend: VEI's dividend (4.44%) is low compared to the top 25% of dividend payers in the Norwegian market (5.99%).


Stability and Growth of Payments

Stable Dividend: VEI's dividends per share have been stable in the past 10 years.

Growing Dividend: VEI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.3%), VEI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VEI's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

What is the CEO of Veidekke's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Jimmy Bengtsson (53yo)

0.2yrs

Tenure

kr3,602,000

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 ($USD396.57K) is below average for companies of similar size in the Norwegian market ($USD641.19K).

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


Management Age and Tenure

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: VEI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

56yo

Average Age

Experienced Board: VEI's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr9,46214 Nov 19
Hans von Uthmann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares83
Max Pricekr114.00
Buykr11,254,41014 Nov 19
Oslo Bolig Og Sparelag
EntityCompany
Shares100,000
Max Pricekr112.54
Buykr336,00014 Nov 19
Tocaba AS
EntityCompany
Shares3,000
Max Pricekr112.00
Buykr842,60021 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr84.26
Buykr840,30020 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr84.03
Buykr831,50019 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr83.15
Buykr831,70014 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr83.17
Buykr1,257,15013 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares15,000
Max Pricekr83.81
Buykr1,262,85006 Jun 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares15,000
Max Pricekr84.19
Buykr506,88029 May 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares6,000
Max Pricekr84.48
Buykr1,089,27029 May 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares13,000
Max Pricekr83.79
Buykr151,02028 May 19
Svein Brandtzæg
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,800
Max Pricekr83.90
Buykr1,242,15028 May 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares15,000
Max Pricekr82.81
Buykr17,88028 Mar 19
Arve Fludal
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares200
Max Pricekr89.40
Buykr878,50026 Mar 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr87.85
Buykr895,70013 Mar 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr89.57
Buykr895,20011 Mar 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares10,000
Max Pricekr89.52
Buykr1,794,60008 Mar 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares20,000
Max Pricekr89.73
Buykr1,342,49601 Mar 19
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares15,000
Max Pricekr89.50
Sellkr286,16018 Dec 18
Arve Fludal
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares2,920
Max Pricekr98.00
Buykr2,457,75017 Dec 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares25,000
Max Pricekr98.31
Buykr2,458,75014 Dec 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares25,000
Max Pricekr98.35
Buykr2,461,75013 Dec 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares25,000
Max Pricekr98.47
Buykr240,82210 Dec 18
Gro Bakstad
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max Pricekr96.33
Buykr2,442,00005 Dec 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares25,000
Max Pricekr97.68
Buykr1,460,55027 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares15,000
Max Pricekr97.37
Buykr4,795,00026 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares50,000
Max Pricekr95.90
Buykr4,823,00023 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares50,000
Max Pricekr96.46
Buykr4,826,50022 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares50,000
Max Pricekr96.53
Buykr41,305,75121 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares425,000
Max Pricekr97.19
Buykr7,219,06520 Nov 18
Stiftelsen Veidekkeansattes Aksjekjøp
EntityCompany
Shares75,000
Max Pricekr96.25

Ownership Breakdown

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


Management Team

  • Jørgen Michelet

    Head of Finance & IR

    • Tenure: 0yrs
  • Jørgen Porsmyr (47yo)

    Executive Vice President of Project Development Skandinavia

    • Tenure: 6.2yrs
    • Compensation: kr3.91m
  • Per-Martin Eriksson

    Chief Executive Officer of Veidekke Bostad AB

    • Tenure: 18.2yrs
  • Øivind Larsen (56yo)

    Executive Vice President of Civil Engineering Norway

    • Tenure: 1.4yrs
    • Compensation: kr2.56m
  • Terje Larsen (58yo)

    CFO & Executive VP

    • Tenure: 6.2yrs
    • Compensation: kr3.47m
  • Jimmy Bengtsson (53yo)

    Group Chief Executive Officer

    • Tenure: 0.2yrs
    • Compensation: kr3.60m
  • Lars Lund (50yo)

    Executive VP of Communication

    • Tenure: 3.1yrs
    • Compensation: kr3.08m
  • Hans Sørlie (54yo)

    Executive Vice President of Building Construction Norway

    • Tenure: 1.4yrs
    • Compensation: kr2.83m
  • Catharina Bjerke (51yo)

    Executive Vice President of Veidekke Industrial

    • Tenure: 1.3yrs
    • Compensation: kr2.53m
  • Anne Thorbjørnsen (50yo)

    Executive VP for HR & OHS

    • Tenure: 1.1yrs
    • Compensation: kr2.21m

Board Members

  • Hans von Uthmann (61yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: kr392.00k
  • Inga Berglund (55yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: kr341.00k
  • Svein Brandtzæg (62yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Gro Bakstad (53yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: kr370.00k
  • Inge Ramsdal (57yo)

    Employee Representative Director

    • Tenure: 11.8yrs
    • Compensation: kr1.10m
  • Ingolv Høyland (68yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr341.00k
  • Odd Olsen (58yo)

    Employee Representative Director

    • Tenure: 8.8yrs
    • Compensation: kr1.11m
  • Daniel Siraj (44yo)

    Director

    • Tenure: 1.5yrs
  • Arve Fludal (49yo)

    Employee Representative Director

    • Tenure: 4.5yrs
    • Compensation: kr1.26m
  • Tone Bachke (47yo)

    Director

    • Tenure: 0.8yrs

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: kr15.022b
  • Shares outstanding: 133.53m
  • Website: https://www.veidekke.no

Number of Employees


Location

  • Veidekke ASA
  • Skabos vei 4
  • Oslo
  • Oslo
  • 278
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEIOB (Oslo Bors)YesCommon SharesNONOKJun 1992
0GF6LSE (London Stock Exchange)YesCommon SharesGBNOKJun 1992
VDEK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 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. It operates through Construction, Property Development, and Industrial segments. The company underta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 21:12
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.