OM:NCC B

Stock Analysis Report

Executive Summary

NCC AB (publ) operates as a construction and property development company in Sweden, Norway, Denmark, and Finland.

Snowflake

Fundamentals

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.3%

NCC B

3.0%

SE Construction

2.7%

SE Market


1 Year Return

22.4%

NCC B

25.7%

SE Construction

9.4%

SE Market

Return vs Industry: NCC B underperformed the Swedish Construction industry which returned 25.7% over the past year.

Return vs Market: NCC B exceeded the Swedish Market which returned 9.4% over the past year.


Shareholder returns

NCC BIndustryMarket
7 Day7.3%3.0%2.7%
30 Day8.0%6.6%1.4%
90 Day2.4%9.8%4.1%
1 Year27.8%22.4%30.1%25.7%14.0%9.4%
3 Year-14.3%-24.3%19.7%4.4%31.3%11.7%
5 Year49.1%-20.1%98.6%50.6%63.0%28.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NCC B (SEK174.4) is trading below our estimate of fair value (SEK262.74)

Significantly Undervalued: NCC B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NCC B is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: NCC B is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NCC B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NCC B is overvalued based on its PB Ratio (7.4x) compared to the SE Construction industry average (3.7x).


Next Steps

Future Growth

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

39.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCC B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: NCC B is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: NCC B's loss is forecast to worsen by 0% next year.

Revenue vs Market: NCC B's revenue (2.9% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: NCC B's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NCC B's Return on Equity is forecast to be high in 3 years time (35%)


Next Steps

Past Performance

How has NCC performed over the past 5 years?

-45.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NCC B is unprofitable, and losses have increased over the past 5 years at a rate of -45.2% per year.

Accelerating Growth: Unable to compare NCC B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NCC B is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (42.1%).


Return on Equity

High ROE: NCC B has a negative Return on Equity (-30.99%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NCC B is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NCC B is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is NCC's financial position?


Financial Position Analysis

Short Term Liabilities: NCC B's short term assets (SEK21.9B) exceeds its short term liabilities (SEK20.5B)

Long Term Liabilities: NCC B's short term assets (21.9B) exceeds its long term liabilities (7.5B)


Debt to Equity History and Analysis

Debt Level: NCC B's debt to equity ratio (129.2%) is considered high

Reducing Debt: NCC B's debt to equity ratio has reduced from 132.1% to 129.2% over the past 5 years.

Debt Coverage: NCC B's debt is well covered by operating cash flow (24.5%).

Interest Coverage: Insufficient data to determine if NCC B's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: NCC B's debt is covered by short term assets (assets are 6.667880x debt).


Next Steps

Dividend

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

2.29%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NCC before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.8%markettop25%4.8%industryaverage2.9%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NCC B's dividend (2.29%) is higher than the bottom 25% of dividend payers in the Swedish market (1.83%).

High Dividend: NCC B's dividend (2.29%) is low compared to the top 25% of dividend payers in the Swedish market (4.77%).

Stable Dividend: NCC B's dividend payments have been volatile in the past 10 years.

Growing Dividend: NCC B's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NCC B is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NCC B's dividends in 3 years are forecast to be covered by earnings (72.8% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Tomas Carlsson (54yo)

1.4yrs

Tenure

kr11,076,052

Compensation

Mr. Tomas Carlsson has been President and Chief Executive Officer of NCC AB (publ) since September 01, 2019 and served as its Head of NCC Property Development since July 22, 2019 until September 01, 2019.  ...


CEO Compensation Analysis

Compensation vs. Market: Tomas has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Swedish market.

Compensation vs Earnings: Insufficient data to compare Tomas's compensation with company performance.


Management Age and Tenure

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: NCC B's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NCC B's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr743,32221 Mar 19
Geir Aarstad
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,200
Max Pricekr142.95
Buykr1,382,50030 Jan 19
Tomas Billing
EntityIndividual
Role
Chairman of the Board
Chairman
Shares10,000
Max Pricekr138.25
Buykr34,12530 Jan 19
Mats Johansson
EntityIndividual
Shares250
Max Pricekr136.50
Buykr71,052,96222 Nov 18
Nordstjernan AB
EntityCompany
Shares528,000
Max Pricekr134.57
Buykr133,65021 Nov 18
Birgit Nørgaard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max Pricekr133.65
Buykr270,24815 Nov 18
Birgit Nørgaard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max Pricekr135.12
Buykr4,130,70025 Oct 18
Tomas Billing
EntityIndividual
Role
Chairman of the Board
Chairman
Shares30,000
Max Pricekr137.69

Ownership Breakdown


Management Team

  • Tomas Carlsson (54yo)

    President & CEO

    • Tenure: 1.4yrs
    • Compensation: kr11.08m
  • Susanne Lithander (58yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Harri Savolainen (48yo)

    Chief Purchasing Officer

    • Tenure: 1.6yrs
  • Ann-Marie Hedbeck (47yo)

    Senior Legal Counsel

    • Tenure: 2yrs
  • Greeg Nordqvist (64yo)

    Senior Vice President of Strategy

    • Tenure: 0yrs
  • Klaus Kaae (60yo)

    Head of NCC Building Nordics

    • Tenure: 3.1yrs
  • Johan Bergman

    Investor Relations Manager

    • Tenure: 0yrs
  • Ylva Lagesson (48yo)

    Head of Development & Operations Services

    • Tenure: 1.8yrs
  • Marie Reifeldt

    Head of Human Resource

    • Tenure: 0yrs
  • Maria Grimberg

    Head of Corporate Communication

    • Tenure: 0yrs

Board Members

  • Tomas Billing (56yo)

    Chairman

    • Tenure: 18.8yrs
  • Viveca Johnson (56yo)

    Director

    • Tenure: 5.5yrs
  • Ulla Litzén (63yo)

    Director

    • Tenure: 11.5yrs
  • Alf Göransson (62yo)

    Director

    • Tenure: 0.5yrs
    • Compensation: kr350.00k
  • Birgit Nørgaard (61yo)

    Director

    • Tenure: 2.5yrs
  • Mats Jönsson (62yo)

    Director

    • Tenure: 2.5yrs
  • Geir Aarstad (59yo)

    Director

    • Tenure: 2.5yrs
  • Karl-Johan Andersson (55yo)

    Employee Representative Director

    • Tenure: 8.8yrs
  • Karl-Gunnar Sivertsson (58yo)

    Employee Representative Director

    • Tenure: 10.8yrs
  • Harald Stjernström (57yo)

    Project Manager of Building dept. & Employee representative Director

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: NCC AB (publ)
  • Ticker: NCC B
  • Exchange: OM
  • Founded: 1918
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr18.820b
  • Shares outstanding: 107.91m
  • Website: https://www.ncc.se

Number of Employees


Location

  • NCC AB (publ)
  • Vallgatan 3
  • Solna
  • Stockholm County
  • 170 80
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCC AOM (OMX Nordic Exchange Stockholm)Series A SharesSESEKJan 1992
NCC BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJan 1992
NCGBDB (Deutsche Boerse AG)YesSeries B SharesDEEURJan 1992
0OFPLSE (London Stock Exchange)YesSeries B SharesGBSEKJan 1992
NCCBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJan 1992
NCCASBATS-CHIXE (BATS 'Chi-X Europe')Series A SharesGBSEKJan 1992

Biography

NCC AB (publ) operates as a construction and property development company in Sweden, Norway, Denmark, and Finland. It operates through five segments: NCC Building Sweden, NCC Building Nordic, NCC Infrastru ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:42
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.