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Atlas Copco (ATLKY)
OTHER OTC:ATLKY
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Atlas Copco
(OTC:ATLKY)
80Outperform
Atlas Copco (ATLKY) vs. S&P 500 (SPY)
Market Cap
$81.79B
Dividend Yield0.94%
Average Volume (3M)655.20K
Price to Earnings (P/E)30.5
Beta (1Y)1.23
Revenue Growth2.81%
EPS Growth6.62%
CountryUS
Employees48,951
SectorIndustrials
Sector Strength69
IndustryIndustrial Goods
Share Statistics
EPS (TTM)0.58
Shares Outstanding3,357,576,400
10 Day Avg. Volume1,544,627
30 Day Avg. Volume655,195
Financial Highlights & Ratios
PEG Ratio4.61
Price to Book (P/B)N/A
Price to Sales (P/S)4.54
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Atlas Copco Business Overview & Revenue Model
Company DescriptionAtlas Copco (ATLKY) is a Swedish multinational industrial company that specializes in the development and manufacturing of industrial tools, air compressors, construction equipment, and assembly systems. The company serves a wide range of industries, including manufacturing, mining, construction, and automotive, providing innovative solutions to enhance productivity and sustainability. With a strong focus on sustainable innovation, Atlas Copco offers products and services that improve energy efficiency, reduce carbon emissions, and increase operational efficiency.
How the Company Makes MoneyAtlas Copco makes money through a diversified revenue model primarily centered around the sale of industrial tools and equipment, as well as complementary services and solutions. The company's key revenue streams include the sale of air compressors, vacuum solutions, and industrial power tools. Additionally, Atlas Copco generates income from aftermarket services, including maintenance, parts supply, and professional support, which provide a steady flow of recurring revenue. The company's strong emphasis on research and development ensures a continuous pipeline of innovative products that meet the evolving needs of its customers. Strategic partnerships and acquisitions also contribute to its growth, enabling Atlas Copco to expand its market presence and enhance its product offerings.
Atlas Copco Financial Statement Overview
Summary
Atlas Copco demonstrates robust financial performance, characterized by consistent revenue growth, strong profitability, a debt-free balance sheet, and excellent cash flow generation. The company maintains a solid financial health with efficient operations and a stable capital structure.Income Statement
Atlas Copco demonstrates strong income statement performance with consistent revenue growth, achieving a notable 24.95% increase from 2022 to 2023. The company also maintains robust profitability, evidenced by a solid gross profit margin and a net profit margin of 16.85% for 2023. Additionally, the EBIT and EBITDA margins are healthy, indicating efficient operations.85
Very Positive
Balance Sheet
The balance sheet reflects a strong financial position with zero total debt in 2023, resulting in a very low debt-to-equity ratio. The company also enjoys a high equity ratio of 54.52%, suggesting a stable capital structure. Furthermore, the return on equity (ROE) is impressive at 26.19%, indicating effective use of shareholder funds.90
Very Positive
Cash Flow
Atlas Copco's cash flow statement highlights excellent cash generation capabilities, with a significant free cash flow growth rate of 36.37% from 2022 to 2023. The operating cash flow to net income ratio is robust, indicating strong cash conversion efficiency. Additionally, the free cash flow to net income ratio underscores solid cash profitability.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 176.77B | 172.66B | 141.32B | 110.91B | 99.79B | Gross Profit |
| 75.74B | 75.12B | 59.38B | 46.53B | 41.18B | EBIT |
| 38.17B | 37.09B | 30.22B | 23.56B | 19.15B | EBITDA |
| 46.95B | 44.85B | 36.82B | 29.27B | 24.41B | Net Income Common Stockholders |
| 29.78B | 28.04B | 23.48B | 18.13B | 14.78B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.40B | 11.22B | 11.85B | 19.58B | 11.65B | Total Assets |
| 208.54B | 182.68B | 172.30B | 136.68B | 113.37B | Total Debt |
| 0.00 | 32.71B | 36.30B | 24.85B | 24.63B | Net Debt |
| -18.97B | 21.82B | 25.05B | 5.86B | 12.97B | Total Liabilities |
| 94.78B | 91.18B | 92.28B | 69.05B | 59.83B | Stockholders Equity |
| 113.70B | 91.45B | 79.98B | 67.63B | 53.22B |
| Cash Flow | Free Cash Flow | |||
| 30.86B | 22.63B | 16.35B | 19.79B | 19.41B | Operating Cash Flow |
| 36.89B | 28.08B | 21.38B | 23.15B | 22.20B | Investing Cash Flow |
| -13.32B | -9.39B | -15.50B | -6.12B | -16.29B | Financing Cash Flow |
| -15.86B | -18.28B | -14.65B | -10.32B | -8.55B |
Atlas Copco Technical Analysis
Positive
17.66
Price Trends
16.80
Positive
16.54
Positive
17.34
Positive
Market Momentum
0.26
Negative
54.41
Neutral
56.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLKY, the sentiment is Positive. The current price of 17.66 is above the 20-day moving average (MA) of 17.46, above the 50-day MA of 16.80, and above the 200-day MA of 17.34, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATLKY.
Atlas Copco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $81.79B | 30.54 | 29.09% | 0.94% | 2.81% | 6.62% | |
77 Outperform | $24.81B | 9.14 | 24.30% | 1.16% | -2.99% | 159.26% | |
74 Outperform | $129.06B | 21.66 | 27.91% | 1.23% | -20.93% | -34.33% | |
66 Neutral | $162.39B | 15.65 | 55.36% | 1.63% | -3.36% | 9.59% | |
62 Neutral | $33.41B | 40.56 | 8.40% | 0.10% | 5.22% | 8.01% | |
62 Neutral | $8.16B | 12.81 | 0.47% | 3.07% | 3.83% | -16.36% | |
57 Neutral | $12.79B | 45.82 | 3.22% | 3.93% | -2.63% | ― |
* Industrials Sector Average
Performance Comparison
ATLKY
Atlas Copco
17.66
-0.02
-0.11%
CAT
Caterpillar
338.13
1.68
0.50%
DE
Deere
471.37
98.14
26.29%
DOV
Dover
181.75
6.43
3.67%
SWK
Stanley Black & Decker
81.16
-7.67
-8.63%
IR
Ingersoll Rand
81.49
-8.96
-9.91%
Atlas Copco Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: 2.56% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with record revenues and strong growth in specific areas like Power Technique and certain regions. However, challenges remain in Industrial Technique and Vacuum Technique, as well as the North American and Chinese markets.Highlights
Record Revenue and Acquisitions
Atlas Copco achieved record revenues supported by currency and acquisitions, with 11 acquisitions completed in the quarter. All business areas contributed to these acquisitions.
Organic Growth and Service Expansion
The company reported a 4% organic growth in Q4 2024, with strong service growth across all business areas.
Power Technique Growth
Power Technique experienced significant organic growth of 16%, driven by increased equipment demand and good growth for specialty rental and service business.
Strong Regional Performance
The company reported strong growth in Africa, Middle East (+14% in the quarter, +49% for the year) and South America (+23% in the quarter, +12% year-to-date).
Dividend Increase
The Board approved a SEK3 per share dividend, an increase from SEK2.8 per share last year, to be paid in two installments.
Lowlights
Industrial Technique Challenges
Orders for Industrial Technique were down 5% in the quarter due to weaker demand from the automotive industry and general industry.
Vacuum Technique Revenue Decline
Vacuum Technique reported a 10% decline in revenues, which affected profitability, with a profit margin of 21.2% (adjusted).
North America Performance
North America showed a flat scenario with a 4% decline in the year, indicating mixed performance across market segments.
China Market Challenges
China remains challenging with mixed performance across different areas, affecting overall regional results.
Company Guidance
During the Atlas Copco Group's earnings call for the fourth quarter of fiscal year 2024, several key metrics were highlighted. The company reported a 4% organic growth in the quarter, reflecting a solid service business across all areas, although equipment orders saw only a slight increase. Revenue reached a record high, supported by currency effects and 11 acquisitions, contributing to a record operating cash flow. The profit margin stood at 21.8%, with basic earnings per share reaching SEK 1.6. For the full year, Atlas Copco achieved SEK 171 billion in orders received and SEK 176.7 billion in revenues, resulting in an operating margin increase of 3% to SEK 38 billion and a profit margin of 21.6%. The company also completed 33 acquisitions during the year and announced a dividend of SEK 3 per share, to be distributed in two installments. Regional performance varied, with Asia showing an 8% growth, Europe maintaining positive development, and Africa, the Middle East, and South America posting significant growth rates. North America, however, experienced a flat scenario, ending the year with a 4% decline.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.