Fact based stock research
Skanska (OM:SKA B)
SE0000113250
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Skanska stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), Skanska (Construction & Engineering, Sweden) shares have much better financial characteristics than comparable stocks. Shares of Skanska are low in value (priced high) with a consolidated Value Rank of 24 (worse than 76% of alternatives). But they show above-average growth (Growth Rank of 96) and are safely financed (Safety Rank of 88, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on Skanska's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Skanska exhibits low value (Obermatt Value Rank of 24), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 96). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 88) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Sweden |
| Industry | Construction & Engineering |
| Index | Human Rights, OMX 30 |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Skanska
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
11 |
|
44 |
|
24 |
|
| GROWTH | ||||||||
| GROWTH | 7 |
|
13 |
|
57 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
77 |
|
86 |
|
88 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
76 |
|
28 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
29 |
|
16 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), Skanska (Construction & Engineering, Sweden) shares have much better financial characteristics than comparable stocks. Shares of Skanska are low in value (priced high) with a consolidated Value Rank of 24 (worse than 76% of alternatives). But they show above-average growth (Growth Rank of 96) and are safely financed (Safety Rank of 88, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on Skanska's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Skanska exhibits low value (Obermatt Value Rank of 24), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 96). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 88) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
11 |
|
44 |
|
24 |
|
| GROWTH | ||||||||
| GROWTH | 7 |
|
13 |
|
57 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
77 |
|
86 |
|
88 |
|
| COMBINED | ||||||||
| COMBINED | 64 |
|
17 |
|
37 |
|
84 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 24 (worse than 76% compared with alternatives), Skanska shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Skanska. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than 50% of comparable companies, indicating a good value concerning to Skanska's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 42, meaning that dividends are expected to be lower than for 58% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 52% of alternatives (only 48% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 53% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 24, is a sell recommendation based on Skanska's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Skanska could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Skanska looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 68 |
|
45 |
|
47 |
|
50 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 79 |
|
27 |
|
61 |
|
47 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 33 |
|
38 |
|
57 |
|
48 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 85 |
|
34 |
|
45 |
|
42 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 71 |
|
11 |
|
44 |
|
24 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 96 (better than 96% compared with alternatives) for 2024, Skanska shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Skanska. Sales Growth has a value of 73, which means that, currently, professionals expect the company to grow more than 73% of its competitors. The same is valid for Profit Growth with a value of 72 and for Capital Growth with 84. In addition, Stock Returns had an above-average rank value of 77, which means they have been higher than 77% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 96, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Skanska exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 7 |
|
37 |
|
64 |
|
73 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 36 |
|
10 |
|
15 |
|
72 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
31 |
|
84 |
|
84 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 35 |
|
45 |
|
41 |
|
77 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 7 |
|
13 |
|
57 |
|
96 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Skanska has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Skanska is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Skanska. Leverage is at 69, meaning the company has a below-average debt-to-equity ratio. It has less debt than 69% of its competitors. Refinancing is at a rank of 68, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 68% of its competitors. Finally, Liquidity is also good at a rank of 96, which means that the company generates more profit to service its debt than 96% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Skanska has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Skanska but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 89 |
|
66 |
|
70 |
|
69 |
|
| REFINANCING | ||||||||
| REFINANCING | 70 |
|
63 |
|
64 |
|
68 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 100 |
|
63 |
|
92 |
|
96 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
|
77 |
|
86 |
|
88 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
13 |
|
37 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
91 |
|
69 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
96 |
|
49 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
44 |
|
17 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
76 |
|
28 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Skanska from November 14, 2024.
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