Atlas Copco (ATLKY)
OTHER OTC:ATLKY
Top Page
Atlas Copco
(OTC:ATLKY)
Select Model
Select Model
Rating:67Neutral
Price Target:
$18.50
â–²(11.99% Upside)
Action:ReiteratedDate:03/26/26
The score is anchored by strong underlying financial quality (durable margins, strong ROE, positive free cash flow), but is held back by weakening 2025 growth/cash-flow momentum and very weak technicals (below key moving averages with negative MACD). Valuation is relatively expensive versus the modest yield, while the latest earnings call suggests balanced fundamentals with cautious near-term visibility and meaningful currency/restructuring headwinds.
Positive Factors
Durable Profitability
Consistently high gross and EBIT margins with strong ROE indicate structurally profitable operations across cycles. This margin base supports steady operating cash flow and resilience to cyclical downturns, underpinning long‑term ability to fund investments and returns.
Negative Factors
Weakening Revenue Momentum
A shift from prior growth to declining 2025 revenues signals cyclical pressures in equipment demand. Sustained revenue weakness reduces operating leverage, may compress margins and slows earnings and cash‑flow growth until end‑markets recover, over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Profitability
Consistently high gross and EBIT margins with strong ROE indicate structurally profitable operations across cycles. This margin base supports steady operating cash flow and resilience to cyclical downturns, underpinning long‑term ability to fund investments and returns.
Read all positive factors
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$89.32B
Dividend Yield1.29%
Average Volume (3M)298.40K
Price to Earnings (P/E)32.4
Beta (1Y)1.35
Revenue Growth1.46%
EPS Growth-0.30%
CountryUS
Employees55,248
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.15
Shares Outstanding3,357,576,400
10 Day Avg. Volume444,232
30 Day Avg. Volume298,400
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 Cap9.92
Enterprise Value/Revenue5.60
Enterprise Value/Gross Profit13.06
Enterprise Value/Ebitda21.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.65
Revenue Forecast (FY)$19.20B
Atlas Copco Business Overview & Revenue Model
Company Description
Atlas 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 ...
How the Company Makes Money
Atlas Copco primarily makes money through a mix of equipment sales and aftermarket/service revenue across its business areas. (1) Equipment sales: The company sells industrial compressors (including air and gas compressors) along with air treatmen...
Atlas Copco Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear commercial and operational strengths (organic order growth in key divisions, robust regional growth in Asia and Europe, strong margins in Compressor Technique, resilient service performance, healthy cash generation, active M&A and shareholder returns) were offset by meaningful near-term headwinds (notably currency effects, acquisition dilution, restructuring costs, tariff/pricing pressure, and declines in Industrial and Power order flows). Management emphasized ongoing mitigation actions (restructuring, pricing, local production, rerouting logistics) and cautious near-term visibility, particularly around semiconductor order timing and a forecasted SEK ~1 billion negative currency impact for Q1 2026. Overall the positives and negatives appear balanced.Positive Updates
Organic Order Growth and Regional Strength
Group organic order growth of 4% in Q4 2025, driven by strong regional performances: Asia +13% and Europe +10%; North America +8% (adjusted +3% excluding NTE acquisition).
Negative Updates
Revenue Stagnation and Declines
Group revenues were largely unchanged organically for the quarter/year. Vacuum Technique revenues were down 3% organically; Industrial Technique revenues down 3% organically; Power Technique revenues down ~4% driven by rental weakness.
Read all updates
Q4-2025 Updates
Positive
Negative
Organic Order Growth and Regional Strength
Group organic order growth of 4% in Q4 2025, driven by strong regional performances: Asia +13% and Europe +10%; North America +8% (adjusted +3% excluding NTE acquisition).
Read all positive updates
Company Guidance
The near‑term guidance was cautious: management expects the group's customer activity level to stay broadly flat into Q1 (i.e., no uplift in orders), with Compressor Technique likewise seeing a flat activity level and Vacuum Technique showing more customer interactions but not necessarily Q1 orders; Industrial Technique remains weak (automotive) and is being further reorganized (SEK 261m provision booked). Key numeric forward indicators cited were an expected effective tax rate of ~22.5% in Q1 (vs. the Q4 effective 20.5%), continued negative currency effects (management expects at least ~SEK 1 billion adverse impact on the bottom line in Q1), and ongoing tariff headwinds that were similar to Q3 (estimated at well under 1 percentage point on margin today and to be mitigated over coming quarters by pricing, rerouting and local assembly). They reiterated mid‑20% area profitability (Q4 adjusted profit margin ~20.5%, full‑year adjusted operating margin ~20.7%), noted recent deal activity (8 acquisitions in Q4, 29 for the year) and strong cash generation (Q4 cash flow SEK 6.8bn, full year SEK 26.8bn), and announced a proposed total shareholder distribution of SEK 5 per share (SEK 3 ordinary + SEK 2 extra, paid in April and October).Atlas Copco Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 158.24B | 176.77B | 172.66B | 141.32B | 110.91B |
| Gross Profit | 67.88B | 75.74B | 75.12B | 59.38B | 46.53B |
| EBITDA | 41.02B | 47.50B | 45.12B | 36.14B | 28.69B |
| Net Income | 24.83B | 29.78B | 28.04B | 23.48B | 18.13B |
Balance Sheet | |||||
| Total Assets | 202.46B | 208.54B | 182.68B | 172.30B | 136.68B |
| Cash, Cash Equivalents and Short-Term Investments | 15.92B | 19.33B | 11.22B | 11.85B | 19.58B |
| Total Debt | 34.90B | 34.71B | 32.71B | 36.30B | 24.85B |
| Total Liabilities | 92.07B | 94.78B | 91.18B | 92.28B | 69.05B |
| Stockholders Equity | 110.21B | 113.70B | 91.45B | 79.98B | 67.63B |
Cash Flow | |||||
| Free Cash Flow | 26.58B | 30.86B | 22.63B | 16.35B | 19.79B |
| Operating Cash Flow | 30.61B | 36.89B | 28.08B | 21.38B | 23.15B |
| Investing Cash Flow | -16.56B | -13.32B | -9.39B | -15.50B | -6.12B |
| Financing Cash Flow | -15.39B | -15.86B | -18.28B | -14.65B | -10.32B |
Atlas Copco Technical Analysis
Positive
16.52
Price Trends
19.67
Negative
18.92
Positive
17.68
Positive
Market Momentum
-0.39
Negative
58.53
Neutral
85.14
Negative
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 17.79, below the 50-day MA of 19.67, and below the 200-day MA of 17.68, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.93B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
72 Outperform | $77.67B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
70 Outperform | $33.16B | 54.24 | 5.70% | 0.10% | 4.20% | -34.47% | |
69 Neutral | $80.22B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $43.82B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
67 Neutral | $89.32B | 32.37 | 24.69% | 1.29% | 1.46% | -0.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ATLKY
Atlas Copco
19.27
4.50
30.51%
EMR
Emerson Electric Company
142.66
44.56
45.43%
ITW
Illinois Tool Works
269.51
48.30
21.83%
PH
Parker Hannifin
966.05
411.00
74.05%
ROK
Rockwell Automation
389.97
163.29
72.03%
IR
Ingersoll Rand
84.67
13.80
19.47%
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.