Skanska (OM:SKA B) Valuation in Focus After Strong Q3 Results and Major New Project Wins

Skanska (OM:SKA B) just released its third quarter and nine-month results, demonstrating stable earnings and continued progress. In addition, the company secured new projects in the US and Poland, signaling ongoing momentum and a robust project pipeline.

See our latest analysis for Skanska.

Skanska’s recent contract wins in the US and Poland come as the stock has cooled off from earlier highs, with a 1-year total shareholder return of 11.6% and a year-to-date share price gain of just under 3%. This suggests that momentum has steadied for now against a strong multi-year track record. While a dip over the past month may reflect some caution after robust earnings and new deals, the long-term total returns indicate that investors have consistently been rewarded as the company executes on large and innovative projects.

If you’re interested in uncovering more opportunities beyond the usual names, now is a smart moment to broaden your outlook and discover fast growing stocks with high insider ownership

With steady performance on the books and ambitious new projects secured, the question for investors is clear: is Skanska's current valuation offering an attractive entry point, or is future growth already factored into the price?

Most Popular Narrative: 11% Undervalued

With Skanska closing at SEK 243.7 and the most widely followed narrative putting fair value at SEK 275, the latest consensus suggests the stock’s long-term fundamentals haven’t been fully reflected in its price. Expectation is building behind the rationale for this gap.

Skanska's record-high order backlog (19 months of production, SEK 268 billion) and strong book-to-bill ratios (greater than 100% across all geographies) position the company to benefit from sustained government infrastructure spending, especially in the US and Europe, supporting future revenue growth. The company is seeing robust demand and improved outlooks in key markets (Swedish civil, Central European residential), which are driven by continued urbanization, population growth, and increased public investments in defense, energy, and water infrastructure. This lays the groundwork for mid and long-term earnings expansion.

Read the complete narrative.

Hungry for details? The full narrative lays out the strategic numbers driving this valuation. One assumption will change how you see Skanska’s growth. Get the inside track on what’s powering analysts’ bullish outlook before the market catches up.

Result: Fair Value of $275 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weakness in Nordic property markets and persistent execution risks on major projects could quickly shift sentiment and challenge Skanska’s growth outlook.

Find out about the key risks to this Skanska narrative.

Build Your Own Skanska Narrative

If you see the numbers differently or enjoy digging into your own analysis, you can assemble your own Skanska narrative in just a few minutes. Do it your way

A great starting point for your Skanska research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Don’t limit your strategy to just one company. Get ahead of the market curve by seizing opportunities across sectors that show strong momentum, innovation, and growth.

• Capitalize on high yields by targeting value-rich companies. See these 15 dividend stocks with yields > 3% pulling in reliable income even in shifting markets.
• Stay on the edge of tomorrow’s tech trends with these 25 AI penny stocks powering breakthroughs in everything from automation to intelligent infrastructure.
• Uncover next-generation healthcare solutions as you track these 32 healthcare AI stocks transforming patient outcomes and industry standards with advanced AI.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com