OM:SWEC A

Stock Analysis Report

Executive Summary

Sweco AB (publ) provides consulting services in engineering, environmental technology, and architecture fields worldwide.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

SWEC A

3.3%

SE Construction

1.9%

SE Market


1 Year Return

34.0%

SWEC A

26.4%

SE Construction

9.6%

SE Market

Return vs Industry: SWEC A exceeded the Swedish Construction industry which returned 26.4% over the past year.

Return vs Market: SWEC A exceeded the Swedish Market which returned 9.6% over the past year.


Shareholder returns

SWEC AIndustryMarket
7 Day1.5%3.3%1.9%
30 Day2.2%6.2%-0.3%
90 Day8.7%10.0%0.7%
1 Year37.3%34.0%30.9%26.4%14.3%9.6%
3 Year42.0%32.1%21.7%6.2%31.5%11.9%
5 Year231.4%178.8%107.1%56.7%66.2%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

25.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SWEC A (SEK276) is trading above our estimate of fair value (SEK254.7)

Significantly Undervalued: SWEC A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SWEC A is poor value based on its PE Ratio (25.3x) compared to the Construction industry average (14.2x).

PE vs Market: SWEC A is poor value based on its PE Ratio (25.3x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SWEC A is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SWEC A is overvalued based on its PB Ratio (5.1x) compared to the SE Construction industry average (3.6x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWEC A's forecast earnings growth (10.7% per year) is above the savings rate (0.4%).

Earnings vs Market: SWEC A's earnings (10.7% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: SWEC A's revenue (5.8% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: SWEC A's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SWEC A's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Sweco performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SWEC A's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: SWEC A's earnings growth over the past year (2.6%) is below its 5-year average (24.8% per year).

Earnings vs Industry: SWEC A earnings growth over the past year (2.6%) underperformed the Construction industry 42.1%.


Return on Equity

High ROE: SWEC A's Return on Equity (20.2%) is considered high.


Return on Assets

ROA vs Industry: SWEC A's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: SWEC A has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sweco's financial position?


Financial Position Analysis

Short Term Liabilities: SWEC A's short term assets (SEK6.9B) exceeds its short term liabilities (SEK5.9B)

Long Term Liabilities: SWEC A's short term assets (6.9B) exceeds its long term liabilities (6.1B)


Debt to Equity History and Analysis

Debt Level: SWEC A's debt to equity ratio (43%) is considered high

Reducing Debt: SWEC A's debt to equity ratio has reduced from 98.2% to 43% over the past 5 years.

Debt Coverage: SWEC A's debt is well covered by operating cash flow (67.4%).

Interest Coverage: SWEC A's interest payments on its debt are well covered by EBIT (46.5x coverage).


Balance Sheet

Inventory Level: SWEC A has a low level of unsold assets or inventory.

Debt Coverage by Assets: SWEC A's debt is covered by short term assets (assets are 2.498180x debt).


Next Steps

Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.8%markettop25%4.8%industryaverage2.9%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SWEC A's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Swedish market (1.79%).

High Dividend: SWEC A's dividend (1.97%) is low compared to the top 25% of dividend payers in the Swedish market (4.78%).

Stable Dividend: SWEC A's dividends per share have been stable in the past 10 years.

Growing Dividend: SWEC A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), SWEC A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWEC A's dividends in 3 years are forecast to be covered by earnings (55.1% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Åsa Bergman (52yo)

1.5yrs

Tenure

0

Ms. Asa Bergman has been the President and Chief Executive Officer of at Sweco AB since April 20, 2018. Ms. Bergman serves as Chief Executive Officer of Sweco Sverige AB. She served as the President of SWE ...


Management Age and Tenure

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: SWEC A's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: SWEC A's board of directors are considered experienced (4.8 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.


Ownership Breakdown


Management Team

  • Tapani Bastman (64yo)

    Head of Energy and Pulp & Paper Division - Sweco Industry

    • Tenure: 0yrs
  • Åsa Bergman (52yo)

    President

    • Tenure: 1.5yrs
  • Jukka Korvenoja (62yo)

    Head of Chemical Industry Division - Sweco Industry

    • Tenure: 0yrs
  • Lisa Lagerwall (47yo)

    General Counsel

    • Tenure: 8.8yrs
  • Lars Enander (56yo)

    Head of Water and Environment Division - Norway

    • Tenure: 20.8yrs
  • Stig Bremer (48yo)

    Head of IT

    • Tenure: 0yrs
  • Katarina Grönwall (50yo)

    Chief Communications Officer

    • Tenure: 0.4yrs
  • Tor-Helge Indrebø (58yo)

    Head of Vest Division

    • Tenure: 0yrs
  • Mikael Landberg (51yo)

    Chief Human Resource Officer

    • Tenure: 1.8yrs
  • Christel Retzlaff

    Acting Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Gunnel Duveblad (64yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: kr538.00k
  • Eva Lindqvist (61yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: kr448.00k
  • Anna Leonsson (48yo)

    Employee Representative Director

    • Tenure: 14.8yrs
  • Åsa Bergman (52yo)

    President

    • Tenure: 1.5yrs
  • Johan Hjertonsson (51yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: kr448.00k
  • Johan Nordström (53yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: kr880.00k
  • Görgen Edenhagen (55yo)

    Employee Representative Director

    • Tenure: 2.3yrs
  • Christine Wolff (59yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: kr478.00k
  • Elaine Weidman-Grunewald (52yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: kr452.00k
  • Maria Ekh (45yo)

    Employee Representative Director

    • Tenure: 4.8yrs

Company Information

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


Key Information

  • Name: Sweco AB (publ)
  • Ticker: SWEC A
  • Exchange: OM
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr32.835b
  • Shares outstanding: 117.80m
  • Website: https://www.sweco.se

Number of Employees


Location

  • Sweco AB (publ)
  • Gjörwellsgatan 22
  • Box 34044
  • Stockholm
  • Stockholm County
  • 100 26
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWEC BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKSep 1998
0H0GLSE (London Stock Exchange)YesClass B SharesGBSEKSep 1998
SWECBsBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKSep 1998
7W7DB (Deutsche Boerse AG)YesClass B SharesDEEURSep 1998
SWEC AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKSep 1998

Biography

Sweco AB (publ) provides consulting services in engineering, environmental technology, and architecture fields worldwide. The company undertakes culture, leisure, sports, education, interior architecture,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:57
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.