OM:SKA B

Stock Analysis Report

Executive Summary

Skanska AB (publ), a construction and project development company, develops and constructs commercial properties, and residential and public private partnerships projects in the Nordic region, Europe, and the United States.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SKA B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.8%

SKA B

11.8%

SE Construction

7.3%

SE Market


1 Year Return

-1.8%

SKA B

5.0%

SE Construction

-6.6%

SE Market

Return vs Industry: SKA B underperformed the Swedish Construction industry which returned 3.8% over the past year.

Return vs Market: SKA B exceeded the Swedish Market which returned -6.9% over the past year.


Shareholder returns

SKA BIndustryMarket
7 Day13.8%11.8%7.3%
30 Day-8.7%-4.0%-2.6%
90 Day-21.3%-18.4%-17.3%
1 Year-1.8%-1.8%6.1%5.0%-4.7%-6.6%
3 Year-9.3%-16.7%-1.6%-12.1%7.0%-8.2%
5 Year7.8%-8.8%25.5%-4.5%15.3%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Skanska 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: SKA B (SEK172.8) is trading below our estimate of fair value (SEK430.71)

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


Price To Earnings Ratio

PE vs Industry: SKA B is good value based on its PE Ratio (11.8x) compared to the Construction industry average (17x).

PE vs Market: SKA B is good value based on its PE Ratio (11.8x) compared to the Swedish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: SKA B is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SKA B is good value based on its PB Ratio (2.2x) compared to the SE Construction industry average (3.2x).


Next Steps

Future Growth

How is Skanska forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKA B's forecast earnings growth (4.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: SKA B's earnings (4.6% per year) are forecast to grow slower than the Swedish market (8.9% per year).

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

Revenue vs Market: SKA B's revenue (0.3% per year) is forecast to grow slower than the Swedish market (4.2% per year).

High Growth Revenue: SKA B's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKA B's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Skanska performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKA B has high quality earnings.

Growing Profit Margin: SKA B's current net profit margins (3.5%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: SKA B's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: SKA B's earnings growth over the past year (31.9%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: SKA B earnings growth over the past year (31.9%) exceeded the Construction industry 21.5%.


Return on Equity

High ROE: SKA B's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is Skanska's financial position?


Financial Position Analysis

Short Term Liabilities: SKA B's short term assets (SEK100.9B) exceed its short term liabilities (SEK74.7B).

Long Term Liabilities: SKA B's short term assets (SEK100.9B) exceed its long term liabilities (SEK18.3B).


Debt to Equity History and Analysis

Debt Level: SKA B's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: SKA B's debt to equity ratio has reduced from 49.8% to 21.6% over the past 5 years.

Debt Coverage: SKA B's debt is well covered by operating cash flow (84.7%).

Interest Coverage: SKA B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKA B's dividend (3.62%) is higher than the bottom 25% of dividend payers in the Swedish market (1.97%).

High Dividend: SKA B's dividend (3.62%) is low compared to the top 25% of dividend payers in the Swedish market (5.9%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.6%), SKA B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKA B's dividends in 3 years are forecast to be well covered by earnings (47.8% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Anders Danielsson (53yo)

2.25s

Tenure

kr32,347,000

Compensation

Mr. Anders Danielsson has been Chief Executive Officer and President of Skanska, AB since January 1, 2018. Mr. Danielsson has been an Executive Vice President at Skanska Sverige AB since November 8, 2013 a ...


CEO Compensation Analysis

Compensation vs Market: Anders's total compensation ($USD3.22M) is above average for companies of similar size in the Swedish market ($USD1.36M).

Compensation vs Earnings: Anders's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anders Danielsson
President & CEO2.25yrskr32.35m0.032% SEK22.9m
Magnus Persson
CFO & Executive VP2.17yrsno data0.0043% SEK3.1m
Andre Lofgren
Senior Vice President of Investor Relations4.17yrsno datano data
Anders Goransson
Senior Vice President of Internal Audit & Compliance6.33yrsno datano data
Caroline Fellenius-Omnell
Executive VP & General Counsel3.25yrsno data0.0017% SEK1.2m
Karolina Cederhage
Senior Vice President of Communications2.25yrsno datano data
Kirsi Mettala
Executive Vice President of Human Resources2.25yrsno data0.0060% SEK4.3m
Claes Larsson
Executive Vice President13.67yrsno data0.049% SEK34.5m
Jonas Spangenberg
President of Boklok Housingno datano datano data
Pontus Winqvist
Chief Financial Officer for Skanska Infrastructure Development6.42yrsno datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: SKA B's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jan Gurander
Independent Director1.08yrskr1.08mno data
Fredrik Lundberg
Independent Director9yrskr910.00k0.55% SEK389.7m
Par Boman
Independent Director5yrskr1.18m0.00024% SEK170.7k
Hans Biorck
Independent Chairman of the Board4yrskr2.59m0.0061% SEK4.3m
Asa Winberg
Director0.083yrno datano data
Richard Horstedt
Employee Representative Director13.25yrsno datano data
Jayne McGivern
Independent Director5yrskr1.02mno data
Catherine Marcus
Independent Director3yrskr910.00kno data
Yvonne Stenman
Director2yrsno datano data
Ola Falt
Employee Representative Director2yrsno data0.00038% SEK270.2k

3.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SKA B's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SKA B 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

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


Key Information

  • Name: Skanska AB (publ)
  • Ticker: SKA B
  • Exchange: OM
  • Founded: 1887
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr71.109b
  • Shares outstanding: 411.51m
  • Website: https://www.skanska.com

Number of Employees


Location

  • Skanska AB (publ)
  • Warfvinges väg 25
  • Stockholm
  • Stockholm County
  • 112 74
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKSB.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDJan 1992
SKA BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJan 1992
0HBTLSE (London Stock Exchange)YesSeries B SharesGBSEKJan 1992
SKNBDB (Deutsche Boerse AG)YesSeries B SharesDEEURJan 1992
SKABSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJan 1992
SKABSEP (The Stock Exchange Prague Co. Ltd.)YesSeries B SharesCZCZKJan 1992
SKBS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Skanska AB (publ), a construction and project development company, develops and constructs commercial properties, and residential and public private partnerships projects in the Nordic region, Europe, and the United States. It operates through Construction, Residential Development, Commercial Property Development, and Infrastructure Development segments. The Construction segment builds and renovates buildings, industrial facilities, infrastructures, and residential projects; and executes service-related assignments, such as construction services, facility operations, and maintenance services. The Residential Development segment develops residential projects, including single and multi-family housing. The Commercial Property Development segment initiates, invests in, develops, leases, and divests commercial property projects. The Infrastructure Development segment identifies, develops, and invests in privately financed infrastructure projects, such as highways, hospitals, and airports. Skanska AB (publ) was founded in 1887 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 22:02
End of Day Share Price2020/04/09 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.