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Skanska AB Sponsored ADR Class B (SKBSY)
OTHER OTC:SKBSY
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Skanska AB Sponsored ADR Class B
(OTC:SKBSY)
Select Model
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Rating:73Outperform
Price Target:
$31.00
▲(10.95% Upside)
Skanska AB's overall stock score reflects strong financial performance and positive earnings call highlights, including robust construction margins and sustainability achievements. However, technical indicators suggest overbought conditions, and valuation metrics indicate fair pricing, which tempers the overall score.
Skanska AB Sponsored ADR Class B (SKBSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.40B
Dividend Yield2.74%
Average Volume (3M)77.00
Price to Earnings (P/E)19.4
Beta (1Y)0.72
Revenue Growth11.46%
EPS Growth36.44%
CountryUS
Employees25,929
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.42
Shares Outstanding400,377,200
10 Day Avg. Volume233
30 Day Avg. Volume77
Financial Highlights & Ratios
PEG Ratio1.57
Price to Book (P/B)1.53
Price to Sales (P/S)0.54
P/FCF Ratio10.52
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.60
Enterprise Value/Ebitda1.05
Forecast
1Y Price Target
$31.00Price Target Upside10.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Skanska AB Sponsored ADR Class B Business Overview & Revenue Model
Company DescriptionSkanska AB (publ) operates as a construction and project development company in the Nordic region, Europe, and the United States. It operates through three segments: Construction, Residential Development, and Commercial Property Development. The Construction segment builds bridges, roads, harbors, quays, hospitals, residences, and schools. The Residential Development segment develops and sells residential projects, including single and multi-family housing. The Commercial Property Development segment initiates, invests in, develops, leases, and divests in commercial properties. It also produces asphalt, gravel, rock, concrete gravel, road construction materials, macadam, and concrete. In addition, the company engages in the construction and renovation of buildings; provision of infrastructure services, including operation, maintenance, and construction work; stone preservation; and rental of machines and equipment. Skanska AB (publ) was founded in 1887 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneySkanska makes money primarily through its construction and development operations. The company's revenue streams include construction contracts for building and infrastructure projects, as well as the development and sale of residential and commercial properties. Skanska undertakes both public and private sector projects, often involving long-term contracts with governments and large corporations. Additionally, the company generates earnings from its investments in infrastructure projects, where it may hold equity stakes and generate returns over the lifecycle of these projects. Skanska's focus on sustainability and green building practices enhances its competitiveness and ability to secure high-value contracts. Revenue is also influenced by partnerships and joint ventures, which allow the company to expand its capabilities and market reach.
Skanska AB Sponsored ADR Class B Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The call highlighted strong construction performance and successful residential development in Central Europe, along with a solid financial position and significant carbon reduction. However, challenges persist in the Nordic residential market and U.S. commercial property divestments, along with low volume in commercial property development. Despite the challenges, the overall sentiment is balanced by strong operational metrics.Q2-2025 Updates
Positive Updates
Strong Construction Performance
Construction delivered a strong margin of 3.9% compared to 3.5% the previous year, with a robust order intake and historically high order backlog of SEK 268 billion.
Residential Development Success in Central Europe
Central Europe recorded strong performance with two major project starts, contributing to more than half of the revenue and achieving an operating margin of 11.3%.
Significant Reduction in Carbon Emissions
Skanska reduced carbon emissions in its operations by 62% since the baseline year of 2015.
Stable Financial Position
The company maintains a solid financial position with an equity ratio of almost 37% and an adjusted net cash flow of SEK 9.7 billion.
Negative Updates
Weak Nordic Residential Market
The Nordic housing market remains weak due to macroeconomic uncertainties and low consumer confidence, affecting sales volumes.
Challenges in U.S. Commercial Property Divestments
No significant divestments in the U.S. commercial property market for over three years due to hesitant investor market and high interest rates.
Low Volume in Commercial Property Development
The Commercial Property Development segment reported low volume with only one divestment in the quarter.
Company Guidance
In the second quarter of 2025, Skanska demonstrated robust financial performance with a strong construction segment operating margin of 3.9%, an increase from the previous year's 3.5%. This was supported by a high order intake of SEK 56.7 billion and a record order backlog of SEK 268 billion, marking a book-to-bill ratio of 113% on a rolling 12-month basis. The company's Residential Development segment showed strong performance in Central Europe, contributing to an overall operating margin of 11.3%, despite a weaker Nordic market. The Commercial Property Development segment reported an operating income of SEK 86 million, with a notable divestment in Bucharest. Investment Properties remained stable, with an economic occupancy rate of 83%. Skanska also highlighted a significant reduction in carbon emissions by 62% since 2015, showcasing its commitment to sustainability. The company's financial position remains solid, with a net cash position of SEK 9.7 billion and an equity ratio of almost 37%.Skanska AB Sponsored ADR Class B Financial Statement Overview
Summary
Skanska AB shows strong financial performance with robust revenue and profitability growth, efficient capital structure, and exceptional cash flow generation. The company maintains a low leverage ratio and demonstrates excellent liquidity, positioning it well for future growth.Income Statement
Skanska AB has demonstrated solid financial performance in the TTM period. The gross profit margin stands at 8.41%, reflecting efficient cost management. Net profit margin improved to 3.38%, indicating strong bottom-line growth. The revenue growth rate for the TTM period is 4.01%, showing steady top-line expansion. EBIT and EBITDA margins are robust at 4.14% and 4.74%, respectively, highlighting effective operational management.78
Positive
Balance Sheet
The company's balance sheet shows a strong equity position with an equity ratio of 37.66%. The debt-to-equity ratio is low at 0.11, indicating prudent financial leverage. Return on equity is healthy at 10.06%, suggesting effective use of shareholders' funds. The overall balance sheet is stable, with solid equity backing reducing financial risk.72
Positive
Cash Flow
Skanska AB exhibits impressive cash flow dynamics. The operating cash flow to net income ratio is 2.39, showing high cash conversion efficiency. Free cash flow has grown significantly, resulting in a free cash flow to net income ratio of 2.31, indicating strong cash generation relative to profit. These metrics underline excellent liquidity and cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 184.66B | 176.48B | 167.17B | 163.17B | 143.87B | 160.34B |
| Gross Profit | 15.84B | 14.48B | 13.43B | 16.69B | 15.71B | 16.89B |
| EBITDA | 9.01B | 7.82B | 11.50B | 13.15B | 11.31B | 15.98B |
| Net Income | 6.17B | 5.55B | 5.00B | 8.26B | 6.86B | 9.88B |
Balance Sheet | ||||||
| Total Assets | 161.73B | 171.21B | 155.19B | 151.59B | 139.04B | 125.63B |
| Cash, Cash Equivalents and Short-Term Investments | 26.34B | 32.20B | 17.91B | 10.01B | 10.95B | 19.51B |
| Total Debt | 6.79B | 7.13B | 17.77B | 14.09B | 14.44B | 14.45B |
| Total Liabilities | 102.72B | 108.59B | 98.84B | 96.34B | 93.24B | 86.91B |
| Stockholders Equity | 58.85B | 62.47B | 56.20B | 55.11B | 45.68B | 38.62B |
Cash Flow | ||||||
| Free Cash Flow | 14.89B | 9.11B | 612.00M | -1.78B | 5.51B | 9.66B |
| Operating Cash Flow | 15.38B | 9.11B | 3.21B | 480.00M | 7.44B | 11.28B |
| Investing Cash Flow | -7.83B | -5.77B | 6.00B | 3.92B | -11.37B | 1.57B |
| Financing Cash Flow | -7.35B | -2.84B | -1.25B | -5.57B | -5.05B | -1.18B |
Skanska AB Sponsored ADR Class B Technical Analysis
Positive
27.94
Price Trends
25.30
Positive
24.56
Positive
23.24
Positive
Market Momentum
0.70
Negative
72.13
Negative
95.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKBSY, the sentiment is Positive. The current price of 27.94 is above the 20-day moving average (MA) of 26.11, above the 50-day MA of 25.30, and above the 200-day MA of 23.24, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 72.13 is Negative, neither overbought nor oversold. The STOCH value of 95.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKBSY.
Skanska AB Sponsored ADR Class B Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $17.57B | 26.98 | 28.17% | 0.81% | 1.50% | 164.17% | |
74 Outperform | $12.27B | 20.98 | 26.41% | ― | -0.77% | 4.34% | |
73 Outperform | $17.27B | 62.34 | 9.38% | ― | 7.08% | 3273.27% | |
73 Outperform | $11.40B | 19.39 | 10.20% | 2.74% | 11.46% | 36.44% | |
72 Outperform | $6.04B | 16.00 | 27.41% | 1.43% | 12.59% | 98.20% | |
68 Neutral | $7.12B | 1.79 | 102.24% | ― | 3.62% | 943.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.