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Atlas Copco (ATLKY)
OTHER OTC:ATLKY
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Atlas Copco
(OTC:ATLKY)
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Rating:70Outperform
Price Target:
$17.50
â–²(5.93% Upside)
Atlas Copco's overall stock score is driven by its strong financial performance and strategic acquisitions, which are offset by bearish technical indicators and a high valuation. The mixed sentiment from the earnings call also contributes to a balanced outlook, highlighting both strengths and challenges.
Positive Factors
Strong Cash Flow
Robust cash flow generation ensures financial flexibility, enabling Atlas Copco to invest in growth opportunities and weather economic fluctuations.
Successful Acquisitions
Strategic acquisitions enhance Atlas Copco's technological capabilities and market reach, particularly in hydrogen and CO2 applications, supporting long-term growth.
Revenue Growth
Sustained revenue growth reflects strong demand for Atlas Copco's products and services, indicating a solid market position and effective business strategy.
Negative Factors
Flat Revenue Growth
Flat revenue growth in the latest period suggests potential challenges in maintaining momentum, which could impact future financial performance if not addressed.
Restructuring Costs
Restructuring costs can strain profitability and indicate underlying operational challenges, potentially affecting Atlas Copco's financial health if persistent.
Challenges in Key Segments
Declines in key segments like Vacuum Technique highlight market and operational challenges that could hinder Atlas Copco's growth and competitive position.
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.79B
Dividend Yield1.42%
Average Volume (3M)146.14K
Price to Earnings (P/E)29.6
Beta (1Y)1.30
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. Volume188,359
30 Day Avg. Volume146,140
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 Cap1.08
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda1.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.6
Revenue Forecast (FY)$17.92B
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 primarily through the sale of equipment and services across its various business segments. The key revenue streams include the sale of air compressors, vacuum pumps, power tools, and assembly systems, in addition to aftermarket services such as maintenance, spare parts, and support. The company has a strong focus on innovation, which allows it to offer premium products that command higher margins. Significant partnerships with various industrial sectors and a global distribution network enhance its market reach, contributing positively to earnings. Furthermore, Atlas Copco emphasizes sustainability, which aligns with rising global demand for energy-efficient and environmentally friendly solutions, thereby driving sales and reinforcing its competitive advantage.
Atlas Copco Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments such as strong cash flow, successful acquisitions, and growth in specific segments, against challenges like restructuring costs, flat revenue growth, and tariff impacts. The company showed resilience in certain regions but faced difficulties in others.Q3-2025 Updates
Positive Updates
Solid Growth in Power Equipment
The Power Technique segment saw a solid growth, with a 5% increase in orders compared to the previous quarter. This growth was driven by strong performance in rental and equipment sales.
Successful Acquisitions
Atlas Copco completed 6 acquisitions, notably ABC Compressors for hydrogen and CO2 applications and Shareway for development in China, adding technologies not previously in the portfolio.
Strong Cash Flow
The company generated a strong operating cash flow of SEK 7.3 billion, indicating robust financial health despite market challenges.
Positive Development in Europe and Asia
Europe saw a 10% development in order intake, with positive contributions from Compressor Technique and Power Technique. Asia also showed a positive development of 1%.
Negative Updates
Mixed Demand and Flat Revenue Growth
Overall, the company experienced mixed demand with flat orders and a minimal revenue growth of 1% organically, affected by market conditions in various segments.
Impact of Restructuring Costs
Profit margins were affected by restructuring costs across several business areas, leading to an adjusted operating margin of 21.3% after accounting for these costs.
Challenges in Vacuum and Industrial Technique Segments
Vacuum Technique faced a 6% decline in revenue organically, impacted by challenges in the North American market and restructuring efforts. Industrial Technique saw a 3% decline in orders due to headwinds in the automotive sector.
Tariff Impacts on Profitability
Tariffs had a negative impact on profitability, contributing to a 0.4% organic margin decline. Although not dramatic, the tariffs added to the challenges in maintaining margins.
Company Guidance
During the Atlas Copco Q3 2025 earnings call, the company reported stable orders aligned with prior guidance, with a slight 1% organic growth in revenues. Key metrics included a 20.5% operating margin, adjusted to 21.3% when excluding restructuring costs, and a robust operating cash flow of SEK 7.3 billion. Orders received totaled SEK 40.5 billion, while revenues reached SEK 41.6 billion. The financial performance varied across regions, with North America and Europe seeing a 10% increase, while Asia experienced a modest 1% growth. The company highlighted six acquisitions, notably ABC Compressors and Shareway, which are expected to bolster their presence in hydrogen and CO2 applications and expand their footprint in China. Despite the challenging market conditions, particularly in the semiconductor sector, the company remained focused on innovation and strategic investments to drive future growth.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 | 45.12B | 36.14B | 28.69B | 23.99B |
| 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
16.52
Price Trends
17.06
Negative
16.47
Positive
16.33
Positive
Market Momentum
-0.24
Negative
48.20
Neutral
62.60
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 above the 20-day moving average (MA) of 16.48, below the 50-day MA of 17.06, and above the 200-day MA of 16.33, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.60 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 | $108.71B | 30.69 | 27.30% | 0.82% | 0.22% | 26.66% | |
71 Outperform | $73.84B | 32.48 | 10.91% | 1.63% | 2.97% | 18.14% | |
71 Outperform | $72.23B | 24.16 | 91.71% | 2.52% | -0.41% | -10.88% | |
71 Outperform | $44.23B | 51.40 | 24.24% | 1.35% | 0.98% | -7.51% | |
70 Outperform | $77.79B | 29.60 | 25.38% | 1.42% | 1.46% | -0.30% | |
66 Neutral | $31.03B | 58.26 | 5.35% | 0.10% | 4.20% | -34.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ATLKY
Atlas Copco
16.52
0.84
5.36%
EMR
Emerson Electric Company
131.44
1.06
0.81%
ITW
Illinois Tool Works
248.99
-21.88
-8.08%
PH
Parker Hannifin
861.49
165.38
23.76%
ROK
Rockwell Automation
393.99
102.53
35.18%
IR
Ingersoll Rand
79.87
-24.20
-23.25%
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.