OM:PEAB B

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

1.1%

PEAB B

2.7%

SE Construction

0.1%

SE Market


1 Year Return

4.0%

PEAB B

10.3%

SE Construction

1.7%

SE Market

PEAB B underperformed the Construction industry which returned 10.3% over the past year.

PEAB B outperformed the Market in Sweden which returned 1.7% over the past year.


Share holder returns

PEAB BIndustryMarket
7 Day1.1%2.7%0.1%
30 Day10.8%10.1%5.2%
90 Day10.9%12.1%1.8%
1 Year9.4%4.0%14.2%10.3%6.0%1.7%
3 Year35.6%18.1%15.9%0.07%30.4%11.0%
5 Year118.0%76.3%87.6%41.5%56.6%23.4%

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

Valuation

Is Peab undervalued based on future cash flows and its price relative to the stock market?

11.41x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Peab's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Peab's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Peab is good value based on earnings compared to the SE Construction industry average.

Peab is good value based on earnings compared to the Sweden market.


Price Based on Expected Growth

Peab is poor value based on expected growth next year.


Price Based on Value of Assets

Peab is good value based on assets compared to the SE Construction industry average.


Next Steps

Future Growth

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

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Peab's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Peab's earnings are expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Peab's revenue growth is expected to exceed the Sweden market average.

Peab's earnings growth is positive but not above the Sweden market average.

Peab's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Peab is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Peab performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Peab's year on year earnings growth rate has been positive over the past 5 years.

Peab's 1-year earnings growth is less than its 5-year average (8.1% vs 18.9%)

Peab's earnings growth has not exceeded the SE Construction industry average in the past year (8.1% vs 42.1%).


Return on Equity

Peab has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Peab used its assets less efficiently than the SE Construction industry average last year based on Return on Assets.


Return on Capital Employed

Peab has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Peab's financial position?


Financial Position Analysis

Peab is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Peab's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Peab's level of debt (81.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (113.2% vs 81.8% today).

Operating cash flow is negative therefore debt is not well covered.

Peab earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.1x debt.


Next Steps

Dividend

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

5.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Peab's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.86%).

Peab's dividend is above the markets top 25% of dividend payers in Sweden (4.8%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Jesper Göransson (48yo)

0yrs

Tenure

kr15,297,000

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

Jesper's remuneration is higher than average for companies of similar size in Sweden.

Jesper's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.2yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Peab management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.0yrs

Average Tenure

59yo

Average Age

The average tenure for the Peab board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Peab individual insiders in the past 3 months.


Recent Insider Transactions

Buykr32,559,10023 Jul 19
Mats Paulsson
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares386,000
Max Pricekr84.35
Sellkr32,559,10023 Jul 19
Mats Paulsson
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares386,000
Max Pricekr84.35
Buykr2,178,00323 Jul 19
Göran Linder
EntityIndividual
Shares24,900
Max Pricekr87.47
Buykr2,169,25623 Jul 19
Stefan Danielsson
EntityIndividual
Shares24,800
Max Pricekr87.47
Buykr874,70023 Jul 19
Karl-Gunnar Karlsson
EntityIndividual
Shares10,000
Max Pricekr87.47
Buykr3,455,06523 Jul 19
Niclas Winkvist
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares39,500
Max Pricekr87.47
Buykr5,361,91123 Jul 19
Jesper Göransson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares61,300
Max Pricekr87.47
Buykr3,113,93223 Jul 19
Roger Linnér
EntityIndividual
Role
Chief Operating Officer
Production Manager & COO
Shares35,600
Max Pricekr87.47
Buykr43,73523 Jul 19
Camila Buzaglo
EntityIndividual
Role
Head of Corporate Communications
Chief Communications Officer
Shares500
Max Pricekr87.47

Ownership Breakdown


Management Team

  • Niclas Winkvist (53yo)

    Chief Financial Officer

    • Tenure: 6.1yrs
  • Gösta Sjöström (71yo)

    Senior Advisor

    • Tenure: 0yrs
  • Jesper Göransson (48yo)

    CEO & President

    • Tenure: 0yrs
    • Compensation: kr15.30m
  • Jan Persson (62yo)

    Head of Peab Support

    • Tenure: 0yrs
  • Mikael Rydén (54yo)

    Head of Information Technology

    • Tenure: 0yrs
  • Roger Linnér (49yo)

    Production Manager & COO

    • Tenure: 6.3yrs
  • Marie Vernersson

    Group Controller

    • Tenure: 11.7yrs
  • Anders Bogren (50yo)

    Head of Purchasing & Logistics

    • Tenure: 0yrs
  • Charlotte Hagö

    Chief Information Officer

    • Tenure: 0yrs
  • Camila Buzaglo (48yo)

    Chief Communications Officer

    • Tenure: 0.8yrs

Board Members

  • Karl-Axel Granlund (64yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: kr520.00k
  • Göran Grosskopf (74yo)

    Chairman of the Board

    • Tenure: 14yrs
    • Compensation: kr980.00k
  • Lars Sköld (69yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: kr520.00k
  • Mats Paulsson (75yo)

    Vice Chairman

    • Tenure: 8.3yrs
    • Compensation: kr460.00k
  • Malin Persson (51yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: kr400.00k
  • Fredrik Paulsson (47yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: kr460.00k
  • Patrik Svensson (50yo)

    Employee Representative Director

    • Tenure: 12.7yrs
  • Kim Thomsen (54yo)

    Employee Representative Director

    • Tenure: 11.7yrs
  • Kerstin Lindell (52yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: kr460.00k
  • Egon Waldemarsson (65yo)

    Employee Representative Director

    • Tenure: 3.3yrs

Company Information

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


Key Information

  • Name: Peab AB (publ)
  • Ticker: PEAB B
  • Exchange: OM
  • Founded: 1959
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr25.352b
  • Shares outstanding: 294.96m
  • 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 D ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 20:39
End of Day Share Price2019/09/20 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.