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Atlas Copco (ATLKY)
:ATLKY
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Atlas Copco
(OTC:ATLKY)
Rating:74Outperform
Price Target:―
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.30B
Dividend Yield1.93%
Average Volume (3M)564.06K
Price to Earnings (P/E)27.3
Beta (1Y)1.27
Revenue Growth0.18%
EPS Growth1.44%
CountryUS
Employees55,248
SectorIndustrials
Sector Strength84
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.14
Shares Outstanding3,357,576,400
10 Day Avg. Volume218,744
30 Day Avg. Volume564,060
Financial Highlights & Ratios
PEG Ratio4.37
Price to Book (P/B)7.17
Price to Sales (P/S)4.61
P/FCF Ratio26.43
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda1.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Atlas Copco Business Overview & Revenue Model
Company DescriptionAtlas Copco (ATLKY) is a Swedish multinational industrial company that provides a wide range of sustainable productivity solutions. Founded in 1873, the company operates across several sectors, including compressors, vacuum solutions, industrial tools and solutions, and power and flow. Atlas Copco serves customers in over 180 countries and is renowned for its innovative products and services that enhance operational efficiency and energy savings.
How the Company Makes MoneyAtlas Copco makes money primarily through the manufacturing and sale of its diverse range of industrial products and services. The company's revenue model is based on four main business areas: Compressor Technique, which provides industrial compressors, gas and process compressors, and air and gas treatment equipment; Vacuum Technique, which offers vacuum solutions for industries such as semiconductor and scientific instrumentation; Industrial Technique, focusing on industrial power tools and assembly systems; and Power Technique, which supplies portable compressors, pumps, and generators. A significant portion of Atlas Copco's earnings also comes from its aftermarket services, including maintenance, repair, and spare parts, which ensure long-term customer relationships and recurring revenue. Additionally, the company engages in strategic partnerships and acquisitions to expand its market presence and technological capabilities, further contributing to its revenue streams.
Atlas Copco Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: -9.92%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Atlas Copco's Q2 2025 earnings call presented a mixed outlook. While the service and Power Technique segments showed positive growth, significant challenges were faced in Compressor Technique, currency impacts, and the automotive market, leading to a balanced view of achievements and difficulties.Q2-2025 Updates
Positive Updates
Service Business Growth
The service business within Atlas Copco's business areas, along with the rental business, showed very good development and continued growth.
Positive Organic Development in Vacuum Technique
Vacuum Technique experienced a positive organic development of 3%, driven by industrial and scientific vacuum orders, with restructuring activities contributing to improved margins.
Power Technique Order Growth
Power Technique saw solid order development with a 10% increase, driven by several product lines such as power, industrial flow, and portable flow.
Healthy Cash Flow and Investments
Atlas Copco reported a healthy cash flow, allowing for continued investments in facilities and acquisitions, adding 5 new companies to its portfolio.
Negative Updates
Compressor Technique Decline
Compressor Technique experienced an organic order decline of 7%, with significant decreases in Gas and Process compressors due to customer hesitations.
Currency Headwinds
The group faced strong currency headwinds, with a negative impact on absolute values, contributing to a SEK 1.5 billion reduction in profit due to currency translation, transaction, and balance sheet revaluation.
Flat Development in Asia
Asia experienced a 0% growth, with negative development in Compressor Technique, particularly in China, affecting large compressor projects.
Challenging Automotive Environment
Industrial assembly and vision solutions saw unchanged orders and a difficult environment in the automotive sector, impacting Industrial Technique's performance.
Lower Orders in North America Semi Market
Vacuum Technique in North America faced challenges due to reduced investment from key accounts in the semiconductor market.
Company Guidance
During the Atlas Copco Q2 2025 earnings call, several key metrics and guidance points were highlighted. The company reported orders received at approximately SEK 40 billion, reflecting a 1% organic decline. Revenue decreased by 2% to SEK 8.4 billion, resulting in an operating margin of 20.6%. The cash flow remained healthy, supporting investments in facilities and the acquisition of five new companies. Despite a mixed demand environment, the company saw positive growth in the Power Technique segment, with orders up by 10%. Compressor Technique experienced a 7% organic decline in orders, mainly due to lower large compressor sales in China. The Vacuum Technique segment showed a positive organic development of 3%, supported by industrial and scientific vacuum growth, although semiconductor equipment orders lagged in Europe and North America. The company's effective tax rate was 22.4%, and they anticipated a similar rate for Q3. Looking ahead, Atlas Copco expects customer activities to remain steady despite ongoing geopolitical uncertainties.Atlas Copco Financial Statement Overview
Summary
Atlas Copco exhibits a commendable financial profile characterized by consistent revenue growth, strong 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, positioning it well for future growth and resilience against potential economic fluctuations.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
Negative
15.07
Price Trends
16.11
Negative
16.08
Negative
16.31
Negative
Market Momentum
-0.28
Positive
38.28
Neutral
14.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLKY, the sentiment is Negative. The current price of 15.07 is below the 20-day moving average (MA) of 16.00, below the 50-day MA of 16.11, and below the 200-day MA of 16.31, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 14.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLKY.
Atlas Copco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $91.35B | 27.68 | 27.16% | 0.94% | -0.23% | 22.41% | |
76 Outperform | $139.48B | 35.86 | 20.76% | 1.04% | 7.66% | 9.19% | |
74 Outperform | $71.30B | 27.25 | 27.30% | 1.93% | 0.18% | 1.44% | |
73 Outperform | $57.89B | 37.80 | 8.15% | 0.59% | 13.59% | 6.52% | |
73 Outperform | $74.64B | 22.47 | 109.06% | 2.38% | -1.40% | 11.65% | |
71 Outperform | $79.07B | 33.55 | 10.86% | 1.50% | 4.78% | 59.68% | |
64 Neutral | $10.64B | 16.04 | 5.48% | 2.12% | 2.74% | -23.62% |
* Industrials Sector Average
Performance Comparison
ATLKY
Atlas Copco
15.13
-1.74
-10.31%
ETN
Eaton
356.45
71.81
25.23%
EMR
Emerson Electric Company
140.57
37.80
36.78%
ITW
Illinois Tool Works
256.04
21.90
9.35%
PH
Parker Hannifin
714.88
152.62
27.14%
ROP
Roper Technologies
537.93
17.98
3.46%
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.