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 Analysis

Excellent balance sheet with reasonable growth potential and pays a dividend.


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

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


Market Performance


7 Day Return

-0.4%

NCC B

0.04%

SE Construction

0.2%

SE Market


1 Year Return

36.9%

NCC B

45.8%

SE Construction

22.0%

SE Market

Return vs Industry: NCC B underperformed the Swedish Construction industry which returned 48% over the past year.

Return vs Market: NCC B exceeded the Swedish Market which returned 24.1% over the past year.


Shareholder returns

NCC BIndustryMarket
7 Day-0.4%0.04%0.2%
30 Day17.0%4.9%3.7%
90 Day29.7%14.7%11.1%
1 Year40.6%36.9%50.7%45.8%26.9%22.0%
3 Year1.7%-10.2%34.2%17.4%40.1%18.9%
5 Year21.2%-34.1%61.0%20.5%46.6%15.5%

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?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCC B (SEK192.7) is trading below our estimate of fair value (SEK353.24)

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


Price To Earnings Ratio

PE vs Industry: NCC B is good value based on its PE Ratio (23.8x) compared to the Construction industry average (23.8x).

PE vs Market: NCC B is poor value based on its PE Ratio (23.8x) compared to the Swedish market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NCC B is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NCC B is overvalued based on its PB Ratio (6.8x) compared to the SE Construction industry average (3.6x).


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCC B's forecast earnings growth (21.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: NCC B's earnings (21.5% per year) are forecast to grow faster than the Swedish market (8.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NCC B's revenue (3.1% per year) is forecast to grow slower than the Swedish market (4.7% per year).

High Growth Revenue: NCC B'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: NCC B's Return on Equity is forecast to be high in 3 years time (33%)


Next Steps

Past Performance

How has NCC performed over the past 5 years?

-40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCC B has high quality earnings.

Growing Profit Margin: NCC B became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NCC B's earnings have declined by -40.3% per year over the past 5 years.

Accelerating Growth: NCC B has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NCC B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (21.6%).


Return on Equity

High ROE: NCC B's Return on Equity (28.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NCC's financial position?


Financial Position Analysis

Short Term Liabilities: NCC B's short term assets (SEK21.8B) exceed its short term liabilities (SEK17.4B).

Long Term Liabilities: NCC B's short term assets (SEK21.8B) exceed its long term liabilities (SEK9.4B).


Debt to Equity History and Analysis

Debt Level: NCC B's debt to equity ratio (90.8%) is considered high.

Reducing Debt: NCC B's debt to equity ratio has reduced from 103.9% to 90.8% over the past 5 years.

Debt Coverage: NCC B's debt is well covered by operating cash flow (80.1%).

Interest Coverage: NCC B's interest payments on its debt are well covered by EBIT (14.1x coverage).


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 7.9x debt).


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.6%marketbottom25%1.6%markettop25%4.2%industryaverage2.6%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: NCC B's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Swedish market (1.59%).

High Dividend: NCC B's dividend (2.59%) is low compared to the top 25% of dividend payers in the Swedish market (4.14%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.9%), NCC B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NCC B's dividends in 3 years are forecast to be covered by earnings (58.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Tomas Carlsson (54yo)

1.8yrs

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's total compensation ($USD1.14M) is above average for companies of similar size in the Swedish market ($USD704.93K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tomas Carlsson
President & CEO1.8yrskr11.08m0.028% SEK5.8m
Susanne Lithander
Chief Financial Officer1.3yrsno datano data
Ylva Lagesson
Head of Development & Operations Services2.1yrsno data0.0019% SEK384.5k
Johan Bergman
Investor Relations Manager0yrsno datano data
Ann-Marie Hedbeck
Senior Legal Counsel2.3yrsno datano data
Maria Grimberg
Head of Corporate Communication0yrsno datano data
Marie Reifeldt
Head of Human Resource0yrsno datano data
Harri Savolainen
Chief Purchasing Officer1.9yrsno datano data
Greeg Nordqvist
Senior Vice President of Strategy0yrsno datano data
Jyri Salonen
Head of NCC Industry3.4yrsno data0.0028% SEK582.0k

2.0yrs

Average Tenure

54yo

Average Age

Experienced Management: NCC B's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harald Stjernström
Project Manager of Building dept. & Employee representative Director1.7yrsno datano data
Tomas Billing
Chairman19.1yrsno data0.13% SEK26.2m
Viveca Johnson
Director5.8yrsno data0.10% SEK21.0m
Ulla Litzén
Independent Director11.8yrsno data0.0064% SEK1.3m
Alf Göransson
Director0.8yrskr350.00kno data
Birgit Nørgaard
Independent Director2.8yrsno data0.0028% SEK577.8k
Mats Jönsson
Independent Director2.8yrsno data0.046% SEK9.6m
Geir Aarstad
Director2.8yrsno data0.0048% SEK1.0m
Karl-Johan Andersson
Employee Representative Director9.1yrsno datano data
Karl-Gunnar Sivertsson
Employee Representative Director11.1yrsno data0.00019% SEK39.5k

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NCC B'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: Insufficient data to determine if 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

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: kr20.784b
  • 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
0OFOLSE (London Stock Exchange)Series A 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 Infrastructure, NCC Industry, and NCC Property Development. The company builds housing and offices, as well as constructs schools, hospitals, stores, and warehouses. It also designs and constructs infrastructure projects, such as tunnels, roads, and railways. In addition, the company produces stone materials and asphalt, as well as engages in piling works and paving. Further, it develops and sells commercial properties in metropolitan regions in Sweden, Norway, Denmark, and Finland. NCC AB was founded in 1918 and is headquartered in Solna, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 20:57
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.