NCC AB (publ) (NCC-B.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

NCC AB (publ) operates as a construction and property development company in Sweden, Norway, Denmark, and Finland.It operates through five segments: NCC Infrastructure, NCC Building Sweden, NCC Building Nordic, NCC Industry, and NCC Property Development.The company builds residential buildings and offices, as well as constructs schools, hospitals, stores, and warehouses.

It also designs and constructs infrastructure projects, such as tunnels, roads, and railways.In addition, the company produces stone materials and asphalt, as well as engages in the piling works and paving.Further, it develops and sells commercial properties in metropolitan regions in Sweden, Norway, Denmark, and Finland.

The company was incorporated in 1935 and is headquartered in Solna, Sweden.

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1.b. Last Insights on NCC

NCC AB's recent performance has been influenced by steady business conditions. The company's valuation appears attractive, with investors reassessing its growth prospects. Although there have been no major headlines, subtle shifts in the share price suggest the market may be noticing underlying strengths. A recent earnings release showed no significant surprises. The company's strategic positioning and modest momentum in its share price have drawn investor attention. With no major news events, the quiet stretch in NCC AB's stock may signal underlying confidence.

1.c. Company Highlights

Last Price	218.6
Change Percentage	-0.82%
Open	220.4
Previous Close	220.4
Market Cap ( Millions)	19891
Volume	97178
Year High	228.6
Year Low	152.9
M A 50	213.37
M A 200	195.07

FCF Yield	21.13%
Dividend Yield	4.12%
ROE	19.54%
Debt / Equity	50.30%
Net Debt / EBIDTA	140.40%
Price To Book	2.57
Price Earnings Ratio	13.48
Price To FCF	4.73
Price To sales	0.33
EV / EBITDA	8.54

2. Transcript Summary

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3. NewsRoom

NCC AB (STU:NCGB) Q3 2025 Earnings Call Highlights: Record Industry Profit and Strong EBIT Growth

Nov -05

Source:

European Dividend Stocks To Consider

Oct -30

Source:

NCC (OM:NCC B) Secures SEK 825 Million In Contracts For Roads And Correctional Facility

Sep -10

Source:

LVMH: Share transactions disclosure

Sep -09

Source:

The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

Source:

Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

Source:

What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

Source:

Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

NCC Infrastructure

Expected Growth: 1.8%

NCC Infrastructure's 1.8% growth is driven by increasing demand for sustainable transportation solutions, government investments in infrastructure development, and the company's strategic focus on urbanization and digitalization. Additionally, NCC's strong order backlog and efficient project execution capabilities contribute to its steady growth.

NCC Building Nordics

Expected Growth: 1.9%

NCC Building Nordics' 1.9% growth driven by increasing infrastructure investments in Nordic countries, urbanization, and a strong order backlog. Additionally, the segment's focus on sustainable construction, digitalization, and operational efficiency improvements contribute to its growth.

NCC Building Sweden

Expected Growth: 2.1%

NCC Building Sweden's 2.1% growth is driven by increasing infrastructure investments, urbanization, and a strong housing market. The segment benefits from the Swedish government's focus on sustainable infrastructure development, as well as NCC's strong market position and ability to deliver complex projects efficiently.

NCC Industry

Expected Growth: 1.7%

NCC Industry's 1.7% growth is driven by increasing demand for infrastructure development, urbanization, and government investments in transportation projects. Additionally, the company's focus on sustainability, digitalization, and operational efficiency has improved its competitive edge, enabling it to capitalize on market opportunities and drive growth.

NCC Property Development

Expected Growth: 2.3%

NCC Property Development's 2.3% growth is driven by increasing demand for sustainable and urban development projects, strategic partnerships, and expansion into new markets. Additionally, the segment benefits from NCC AB's strong brand reputation, efficient project management, and cost-effective solutions, enabling it to capitalize on Sweden's growing construction market.

Other and Eliminations

Expected Growth: 1.5%

NCC AB's Other and Eliminations segment growth of 1.5% is driven by increased infrastructure investments, favorable currency exchange rates, and improved operational efficiency. Additionally, the company's strategic divestments and focus on core businesses have contributed to the segment's growth.

7. Detailed Products

Infrastructure Services

NCC AB provides infrastructure services, including construction, maintenance, and management of roads, railways, and other public infrastructure.

Building Construction

NCC AB offers building construction services, including new builds, renovations, and restorations of commercial and residential properties.

Civil Engineering

NCC AB provides civil engineering services, including design, construction, and maintenance of bridges, tunnels, and other infrastructure projects.

Property Development

NCC AB develops and manages commercial and residential properties, including office buildings, apartments, and shopping centers.

Environmental Services

NCC AB provides environmental services, including waste management, recycling, and environmental consulting.

Industrial Services

NCC AB offers industrial services, including maintenance, repair, and operation of industrial facilities and equipment.

8. NCC AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NCC AB (publ) is moderate due to the availability of alternative construction materials and services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong market position and long-term relationships with clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the construction industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the construction industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.47%
Debt Cost	3.95%
Equity Weight	62.53%
Equity Cost	9.46%
WACC	7.39%
Leverage	59.93%

11. Quality Control: NCC AB (publ) passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Galliford Try

A-Score: 6.8/10

Value: 6.4

Growth: 6.8

Quality: 5.6

Yield: 7.5

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Burkhalter Holding

A-Score: 6.6/10

Value: 2.6

Growth: 5.1

Quality: 6.7

Yield: 6.9

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Per Aarsleff Holding

A-Score: 6.5/10

Value: 5.8

Growth: 8.2

Quality: 4.8

Yield: 3.8

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

NCC

A-Score: 6.3/10

Value: 6.5

Growth: 5.4

Quality: 4.6

Yield: 7.5

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

Mota-Engil

A-Score: 5.7/10

Value: 6.1

Growth: 7.3

Quality: 4.4

Yield: 5.6

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Keller

A-Score: 5.5/10

Value: 7.6

Growth: 7.0

Quality: 5.1

Yield: 4.4

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.54%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.39%

NCC AB (publ) - SE0000117970

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NCC

1.c. Company Highlights

Strong Momentum

Lower Quality

Fairly Valued

Earnings Miss

Revenues Miss

Average Yield

Earnings Beats

Revenues Beats

Stable Momentum

Average Quality

Higher Yield

Average Growth

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

NCC Infrastructure

Expected Growth: 1.8%

NCC Building Nordics

Expected Growth: 1.9%

NCC Building Sweden

Expected Growth: 2.1%

NCC Industry

Expected Growth: 1.7%

NCC Property Development

Expected Growth: 2.3%

Other and Eliminations

Expected Growth: 1.5%

7. Detailed Products

Infrastructure Services

Building Construction

Civil Engineering

Property Development

Environmental Services

Industrial Services

8. NCC AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: NCC AB (publ) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

218.6$

Current Price

218.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA