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Atlas Copco
(OTC:ATLKY)
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Rating:75Outperform
Price Target:
$22.50
â–²(36.20% Upside)
Action:Reiterated
Date:07/17/26
The score is driven primarily by strong underlying financial quality (durable margins, healthy returns, and consistent free cash flow) and a supportive earnings-call outlook highlighting strong order momentum and steady near-term activity. Technicals are moderately positive with an uptrend but not strong momentum, while the main constraint is valuation (high P/E with only a modest dividend yield).
Positive Factors
High and durable margins
Consistently high gross and operating margins indicate structural pricing power and efficient manufacturing across cycles. Sustained margins support reinvestment in R&D and capacity, underpin stable free cash flow and the ability to fund dividends, M&A and organic growth over months to years.
Negative Factors
Margin pressure from ramp-ups & acquisitions
Integration costs and start‑up labor expenses are already compressing margins in growing divisions. If acquisition mix or ramp timing persist, margin dilution could last beyond the immediate quarters, slowing ROCE recovery and reducing incremental free cash flow from those growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High and durable margins
Consistently high gross and operating margins indicate structural pricing power and efficient manufacturing across cycles. Sustained margins support reinvestment in R&D and capacity, underpin stable free cash flow and the ability to fund dividends, M&A and organic growth over months to years.
Read all positive factors
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.72B
Dividend Yield1.88%
Average Volume (3M)556.96K
Price to Earnings (P/E)36.2
Beta (1Y)1.38
Revenue Growth8.94%
EPS Growth5.15%
CountryUS
Employees56,413
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)5.49
Shares Outstanding3,357,576,400
10 Day Avg. Volume251,472
30 Day Avg. Volume556,955
Financial Highlights & Ratios
PEG Ratio-1.96
Price to Book (P/B)7.29
Price to Sales (P/S)5.08
P/FCF Ratio30.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.63
Revenue Forecast (FY)$18.79B
Atlas Copco Business Overview & Revenue Model
Company Description
Atlas Copco AB engages in the provision of sustainable productivity solutions. The firm offers compressors, vacuum solutions, generators, power tools, and assembly systems. It operates through the following segments: Compressor Technique, Vacuum T...
How the Company Makes Money
Atlas Copco primarily makes money by selling industrial equipment and by providing aftermarket services and consumables tied to its installed base. Key revenue streams include: (1) Equipment sales: revenue from the sale of compressors, vacuum pump...
Atlas Copco Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call delivered a strongly positive operational story: record orders, very strong growth in Vacuum Technique and across key regions, revenue and adjusted profit expansion, solid cash generation, continued M&A and product innovation, and service growth. Offsetting factors are mostly operational and transitional (ramp-up costs, acquisitive dilution, working capital increase, some regional softness and lumpy order timing), which management characterized as manageable and largely temporary. On balance, the positive commercial momentum and financial performance materially outweigh the transitory challenges.Positive Updates
Record Order Intake and Strong Order Book
Added more than SEK 10 billion to the order book; year-to-date orders received SEK 96 billion and orders invoiced SEK 85 billion. Management highlighted very strong order intake across several market segments and cited an overall organic orders uplift (referred to as 26% organic growth) supporting a stronger backlog.
Negative Updates
Margin Pressure from Acquisitions and Ramp-Up Costs
Acquisitions and ramp-up investments diluted margins in some Business Areas. Compressor Technique margin eased to 24.1% (from ~25% prior). Vacuum Technique margins were impacted by significant ramp-up costs (investments in direct labor and start‑up costs) which reduced drop-through despite strong revenue growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Intake and Strong Order Book
Added more than SEK 10 billion to the order book; year-to-date orders received SEK 96 billion and orders invoiced SEK 85 billion. Management highlighted very strong order intake across several market segments and cited an overall organic orders uplift (referred to as 26% organic growth) supporting a stronger backlog.
Read all positive updates
Company Guidance
Management gave sequential Q3 guidance that customer activity — which rose from Q1 to Q2 — is expected to remain at this elevated level, supported by continued strength in semiconductors and general industry; they expect currency effects on next‑quarter top line to be very minor and essentially zero on the bottom line, and an effective tax rate around 22.8% (potentially ~22.5%). Key Q2 metrics they referenced that underpin the outlook include year‑to‑date orders received SEK 96bn and orders invoiced SEK 85bn, Q2 orders adding >SEK 10bn to the book, organic order growth of 26% and organic revenue growth of 8%, adjusted profit up 12% (adjusted margin ~21%) while reported group operating margin was 20.6%; business‑area stats cited include Vacuum Technique organic orders +59% (now ~25% of 12‑month orders), Compressor Technique revenue +3% organically with a 24.1% margin, Industrial Technique organic +11%, Power Technique organic +14%, ROCE 24% (down YoY but improving sequentially), and Q2 operating cash flow/cash generation of SEK 6.8bn — all while continuing capacity ramps (new VT facility, Korea/China for Gas & Process) and acquisitions to support sustained elevated demand.Atlas Copco Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.29B | 158.24B | 176.77B | 172.66B | 141.32B | 110.91B |
| Gross Profit | 67.97B | 67.88B | 75.74B | 75.12B | 59.38B | 46.53B |
| EBITDA | 42.02B | 41.02B | 47.50B | 45.12B | 36.14B | 28.69B |
| Net Income | 26.75B | 24.83B | 29.78B | 28.04B | 23.48B | 18.13B |
Balance Sheet | ||||||
| Total Assets | 215.59B | 202.46B | 208.54B | 182.68B | 172.30B | 136.68B |
| Cash, Cash Equivalents and Short-Term Investments | 15.36B | 15.92B | 19.33B | 11.22B | 11.85B | 19.58B |
| Total Debt | 35.77B | 34.90B | 34.71B | 32.71B | 36.30B | 24.85B |
| Total Liabilities | 109.09B | 92.07B | 94.78B | 91.18B | 92.28B | 69.05B |
| Stockholders Equity | 106.31B | 110.21B | 113.70B | 91.45B | 79.98B | 67.63B |
Cash Flow | ||||||
| Free Cash Flow | 26.33B | 26.58B | 30.86B | 22.63B | 16.35B | 19.79B |
| Operating Cash Flow | 29.98B | 30.61B | 36.89B | 28.08B | 21.38B | 23.15B |
| Investing Cash Flow | -14.60B | -16.56B | -13.32B | -9.39B | -15.50B | -6.12B |
| Financing Cash Flow | -20.55B | -15.39B | -15.86B | -18.28B | -14.65B | -10.32B |
Atlas Copco Technical Analysis
Positive
16.52
Price Trends
19.54
Positive
19.24
Positive
18.80
Positive
Market Momentum
0.08
Negative
51.76
Neutral
77.86
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 16.52 is below the 20-day moving average (MA) of 19.88, below the 50-day MA of 19.54, and below the 200-day MA of 18.80, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.86 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $120.19B | 34.59 | 24.69% | 0.79% | 6.03% | 4.26% | |
77 Outperform | $51.39B | 47.49 | 30.25% | 1.33% | 10.45% | 21.30% | |
75 Outperform | $94.72B | 36.23 | 23.75% | 1.29% | 8.94% | 5.15% | |
71 Outperform | $78.16B | 31.40 | 12.11% | 1.58% | 4.03% | 3.51% | |
70 Outperform | $79.42B | 25.18 | 97.38% | 2.43% | 2.90% | -5.25% | |
65 Neutral | $32.18B | 53.46 | 5.80% | 0.10% | 6.86% | -26.67% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ATLKY
Atlas Copco
19.94
4.38
28.17%
EMR
Emerson Electric Company
136.58
-4.04
-2.88%
ITW
Illinois Tool Works
271.69
23.33
9.39%
PH
Parker Hannifin
950.79
245.70
34.85%
ROK
Rockwell Automation
458.71
112.89
32.64%
IR
Ingersoll Rand
80.18
-3.63
-4.33%
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.