Sweco (OM:SWEC B) - Share price, News & Analysis

SWEC B fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

SWEC B Stock Overview

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

Rewards

Trading at 30.8% below our estimate of its fair value

Earnings are forecast to grow 10.22% per year

Earnings grew by 25.9% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Sweco Competitors

Skanska

OM:SKA B

kr67.8b

NCC

OM:NCC B

kr13.3b

CBRE Group

NYSE:CBRE

US$26.2b

China Railway Group

SHSE:601390

CN¥162.1b

Price History & Performance

Summary of all time highs, changes and price drops for Sweco
Historical stock prices
Current Share Price	kr115.50
52 Week High	kr170.90
52 Week Low	kr108.50
Beta	0.82
1 Month Change	-15.94%
3 Month Change	-10.26%
1 Year Change	-21.38%
3 Year Change	41.78%
5 Year Change	49.55%
Change since IPO	5,874.14%

Recent News & Updates

May 25

Is Now An Opportune Moment To Examine Sweco AB (publ) (STO:SWEC B)?

Sweco AB (publ) ( STO:SWEC B ), might not be a large cap stock, but it received a lot of attention from a substantial...

May 14

Sweco's (STO:SWEC B) Returns On Capital Not Reflecting Well On The Business

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...

Shareholder Returns

	SWEC B	SE Construction	SE Market
7D	1.9%	-3.6%	-1.0%
1Y	-21.4%	-27.4%	-13.5%

Return vs Industry: SWEC B exceeded the Swedish Construction industry which returned -27.4% over the past year.

Return vs Market: SWEC B underperformed the Swedish Market which returned -13.5% over the past year.

Price Volatility

Is SWEC B's price volatile compared to industry and market?
SWEC B volatility
SWEC B Average Weekly Movement	6.1%
Construction Industry Average Movement	6.6%
Market Average Movement	7.5%
10% most volatile stocks in SE Market	12.6%
10% least volatile stocks in SE Market	4.8%

Stable Share Price: SWEC B is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SWEC B's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	18,000	Asa Bergman	https://www.sweco.se

Sweco AB (publ) provides consulting services in engineering, environmental technology, and architecture fields worldwide. The company undertakes provides energy analysis and environmental certification, design of electrical, telecom and security systems, fire safety engineering and risk analysis, HVAC and sanitation, steel, timber, and glass structures design, building construction and industrial structures design, construction economics, urban planning, project and design management, property development, site supervision, systems development and big data, data coordination and BIM, 3D visualization and geographical analyses, and strategy and operational support. It also provides water and wastewater engineering services, water resource planning, urban water management, design of flood protection structures, waste management planning and advice, environmental studies and services, energy production studies, transmission and distribution planning, energy market analysis and optimization advice, process engineering services, plant design, and logistics planning and project management.

Sweco Fundamentals Summary

How do Sweco's earnings and revenue compare to its market cap?
SWEC B fundamental statistics
Market Cap	kr39.69b
Earnings (TTM)	kr1.56b
Revenue (TTM)	kr22.33b

26.4x

P/E Ratio

1.8x

P/S Ratio

Is SWEC B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWEC B income statement (TTM)
Revenue	kr22.33b
Cost of Revenue	kr14.75b
Gross Profit	kr7.58b
Other Expenses	kr6.02b
Earnings	kr1.56b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 15, 2022

Earnings per share (EPS)	4.37
Gross Margin	33.95%
Net Profit Margin	7.00%
Debt/Equity Ratio	16.7%

How did SWEC B perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

56%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

30.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SWEC B (SEK115.5) is trading below our estimate of fair value (SEK166.98)

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

Price To Earnings Ratio

PE vs Industry: SWEC B is poor value based on its Price-To-Earnings Ratio (26.4x) compared to the Swedish Construction industry average (25.4x).

PE vs Market: SWEC B is poor value based on its Price-To-Earnings Ratio (26.4x) compared to the Swedish market (17.1x).

Price to Earnings Growth Ratio

PEG Ratio: SWEC B is poor value based on its PEG Ratio (2.6x)

Price to Book Ratio

PB vs Industry: SWEC B is overvalued based on its Price-To-Book Ratio (4.5x) compared to the SE Construction industry average (2.2x).

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWEC B's forecast earnings growth (10.2% per year) is above the savings rate (0.3%).

Earnings vs Market: SWEC B's earnings (10.2% per year) are forecast to grow faster than the Swedish market (9.5% per year).

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

Revenue vs Market: SWEC B's revenue (3.9% per year) is forecast to grow slower than the Swedish market (5.8% per year).

High Growth Revenue: SWEC B's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SWEC B's Return on Equity is forecast to be low in 3 years time (19.6%).

Past Performance

How has Sweco performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SWEC B has high quality earnings.

Growing Profit Margin: SWEC B's current net profit margins (7%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: SWEC B's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: SWEC B's earnings growth over the past year (25.9%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: SWEC B earnings growth over the past year (25.9%) exceeded the Construction industry 9.3%.

Return on Equity

High ROE: SWEC B's Return on Equity (17.1%) is considered low.

Financial Health

How is Sweco's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SWEC B's short term assets (SEK8.2B) exceed its short term liabilities (SEK6.9B).

Long Term Liabilities: SWEC B's short term assets (SEK8.2B) exceed its long term liabilities (SEK4.0B).

Debt to Equity History and Analysis

Debt Level: SWEC B's net debt to equity ratio (10.9%) is considered satisfactory.

Reducing Debt: SWEC B's debt to equity ratio has reduced from 33.7% to 16.7% over the past 5 years.

Debt Coverage: SWEC B's debt is well covered by operating cash flow (139.5%).

Interest Coverage: SWEC B's interest payments on its debt are well covered by EBIT (27.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SWEC B's dividend (2.12%) is higher than the bottom 25% of dividend payers in the Swedish market (1.47%).

High Dividend: SWEC B's dividend (2.12%) is low compared to the top 25% of dividend payers in the Swedish market (4.88%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56%), SWEC B's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46%), SWEC B's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Asa Bergman (54 yo)

4.08yrs

Tenure

Ms. Åsa Bergman is an Independent Director at Svenska Cellulosa Aktiebolaget SCA (publ) since March 31, 2022. She has been the President and Chief Executive Officer of at Sweco AB (publ) since April 20, 20...

Leadership Team

Experienced Management: SWEC B's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: SWEC B's board of directors are considered experienced (6.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SWEC B insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31