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Atlas Copco (ATLKY)
:ATLKY
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Atlas Copco
(OTC:ATLKY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$18.00
â–²(4.47% Upside)
Atlas Copco's strong financial performance is the most significant factor, showcasing robust growth and stability. Technical analysis and valuation present moderate concerns, with mixed technical indicators and a high P/E ratio. The earnings call adds a layer of cautious optimism due to growth in some segments despite challenges.
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.62B
Dividend Yield1.69%
Average Volume (3M)209.87K
Price to Earnings (P/E)30.2
Beta (1Y)1.28
Revenue Growth0.16%
EPS Growth-2.03%
CountryUS
Employees55,248
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.14
Shares Outstanding3,357,576,400
10 Day Avg. Volume125,127
30 Day Avg. Volume209,869
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda1.78
Forecast
1Y Price Target
$18.00Price Target Upside4.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Atlas Copco Business Overview & Revenue Model
Company DescriptionAtlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.
How the Company Makes MoneyAtlas Copco generates revenue through several key streams, primarily from the sale of industrial equipment and services. The company’s main revenue sources include the sale of air and gas compressors, vacuum solutions, and related accessories, which cater to a wide range of industries. Additionally, Atlas Copco earns income through its service and maintenance contracts, which help ensure the longevity and efficiency of its products. The company also benefits from long-term partnerships with various industries, providing tailored solutions and support, further enhancing customer loyalty and repeat business. In recent years, Atlas Copco has increasingly focused on innovation and sustainability, which has opened up new revenue opportunities in areas such as energy efficiency and environmentally friendly technologies.
Atlas Copco Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the service and power segments, along with successful acquisitions bolstering future prospects. However, significant currency headwinds and declines in key areas such as Compressor Technique and Gas and Process compressions present challenges. The sentiment is mixed with cautious optimism due to the positive developments in some segments and ongoing investments.Q2-2025 Updates
Positive Updates
Strong Performance in Power Technique
Power Technique saw a 10% increase in orders, indicating a solid development across several product lines and specialty rental.
Healthy Service Business Growth
Service business across all divisions, including rental services, showed very good development, contributing positively to overall performance.
Successful Acquisitions
Atlas Copco added five new companies to its portfolio, demonstrating continued investment in growth and expansion.
Positive Developments in Vacuum Technique
Vacuum Technique showed positive organic growth of 3%, with restructuring efforts beginning to show benefits in cost base improvements.
Negative Updates
Currency Headwinds Affecting Financials
Significant negative impact from currency fluctuations led to a reduced operating margin, with SEK 1.5 billion affected by currency revaluation.
Decline in Compressor Technique Orders
Compressor Technique experienced a 7% decline in organic orders, mainly due to reduced demand for large compressors, particularly from China.
Weakness in Gas and Process Compressors
The Gas and Process segment faced significant order declines due to hesitation from customers in placing large orders.
Industrial Technique Revenue Challenges
Industrial Technique saw a 12% decrease in revenues, with the automotive sector still facing a challenging environment.
Company Guidance
In the Atlas Copco Q2 2025 earnings call, the company reported mixed demand across its divisions, with notable declines in orders for Compressor Technique, particularly Gas and Process compressors, contributing to an overall 1% organic decline in orders received, equating to approximately SEK 40 billion. Revenues decreased by 2%, and operating profit was SEK 8.4 billion, translating to a margin of 20.6%. The quarter was impacted by substantial currency headwinds, which, alongside a 9% negative currency effect on orders and an 8% effect on revenues, affected profitability. Despite these challenges, the service business demonstrated strong growth, and the company maintained a healthy cash flow, facilitating investments and acquisitions, including the addition of five companies to its portfolio. The company also experienced a 7% organic decline in Compressor Technique orders, with Gas and Process compressors accounting for about half of this decrease. Meanwhile, Vacuum Technique saw a 3% positive organic development, and Power Technique achieved a 10% increase. Looking forward, Atlas Copco expects customer activities to remain at current levels amid ongoing global economic uncertainties.Atlas Copco Financial Statement Overview
Summary
Atlas Copco demonstrates strong financial performance with consistent revenue growth, robust profitability margins, a debt-free balance sheet, and excellent cash flow generation. The company's financial health is solid, 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 173.03B | 176.77B | 172.66B | 141.32B | 110.91B | 99.79B |
| Gross Profit | 74.44B | 75.74B | 75.12B | 59.38B | 46.53B | 41.18B |
| EBITDA | 45.09B | 47.50B | 44.85B | 36.82B | 29.27B | 24.41B |
| Net Income | 28.09B | 29.78B | 28.04B | 23.48B | 18.13B | 14.78B |
Balance Sheet | ||||||
| Total Assets | 198.91B | 208.54B | 182.68B | 172.30B | 136.68B | 113.37B |
| Cash, Cash Equivalents and Short-Term Investments | 20.96B | 19.33B | 11.22B | 11.85B | 19.58B | 11.65B |
| Total Debt | 0.00 | 34.71B | 32.71B | 36.30B | 24.85B | 24.63B |
| Total Liabilities | 98.20B | 94.78B | 91.18B | 92.28B | 69.05B | 59.83B |
| Stockholders Equity | 100.65B | 113.70B | 91.45B | 79.98B | 67.63B | 53.22B |
Cash Flow | ||||||
| Free Cash Flow | 29.68B | 30.86B | 22.63B | 16.35B | 19.79B | 19.41B |
| Operating Cash Flow | 36.38B | 36.89B | 28.08B | 21.38B | 23.15B | 22.20B |
| Investing Cash Flow | -12.90B | -13.32B | -9.39B | -15.50B | -6.12B | -16.29B |
| Financing Cash Flow | -16.20B | -15.86B | -18.28B | -14.65B | -10.32B | -8.55B |
Atlas Copco Technical Analysis
Positive
17.23
Price Trends
16.00
Positive
16.09
Positive
16.24
Positive
Market Momentum
0.34
Negative
66.25
Neutral
71.50
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 17.23 is above the 20-day moving average (MA) of 16.37, above the 50-day MA of 16.00, and above the 200-day MA of 16.24, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 66.25 is Neutral, neither overbought nor oversold. The STOCH value of 71.50 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 93.55B | 27.23 | 25.81% | 0.91% | -0.40% | 24.40% | |
74 Outperform | $77.62B | 30.21 | 27.30% | 1.69% | 0.16% | -2.03% | |
73 Outperform | 73.73B | 28.14 | 13.35% | 1.60% | 4.78% | 59.68% | |
73 Outperform | 38.75B | 40.44 | 28.01% | 1.50% | -8.23% | -3.29% | |
73 Outperform | 76.51B | 23.03 | 104.83% | 2.28% | -1.40% | 11.65% | |
70 Outperform | 31.40B | 61.68 | 5.18% | 0.10% | 4.67% | -36.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
ATLKY
Atlas Copco
17.23
-0.86
-4.75%
EMR
Emerson Electric Company
131.91
27.75
26.64%
ITW
Illinois Tool Works
263.59
11.69
4.64%
PH
Parker Hannifin
755.70
135.82
21.91%
ROK
Rockwell Automation
348.56
84.89
32.20%
IR
Ingersoll Rand
81.53
-16.03
-16.43%
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.