Epiroc AB (EPOAY)
OTHER OTC:EPOAY
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Epiroc AB
(OTC:EPOAY)
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Rating:71Outperform
Price Target:
$31.00
▲(38.21% Upside)
Action:UpgradedDate:05/01/26
The score reflects solid underlying financial quality and positive technical trend, reinforced by a constructive earnings outlook with strong order momentum and resilient margins. These positives are tempered by slowing recent growth and weaker free-cash-flow momentum, alongside a relatively expensive valuation (high P/E and low yield).
Positive Factors
Recurring Aftermarket Revenue
A 63% aftermarket share signals a large installed base and recurring consumables, parts and service revenue. This mix smooths cyclical equipment swings, supports higher lifetime margins, and creates durable cash flow and multi-year customer relationships that underpin stable earnings.
Negative Factors
Slowing Revenue Growth
After rapid expansion in 2022–2023, top-line momentum weakened into 2025 and TTM declines signal softer demand. Persistent slower revenue reduces operating leverage benefits, limits reinvestment capacity and can pressure return on capital and long-term EPS growth if sustained.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket Revenue
A 63% aftermarket share signals a large installed base and recurring consumables, parts and service revenue. This mix smooths cyclical equipment swings, supports higher lifetime margins, and creates durable cash flow and multi-year customer relationships that underpin stable earnings.
Read all positive factors
Epiroc AB (EPOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.37B
Dividend YieldN/A
Average Volume (3M)961.00
Price to Earnings (P/E)32.3
Beta (1Y)1.15
Revenue Growth5.58%
EPS Growth7.51%
CountryUS
Employees19,067
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)6.99
Shares Outstanding823,766,000
10 Day Avg. Volume0
30 Day Avg. Volume961
Financial Highlights & Ratios
PEG Ratio-4.16
Price to Book (P/B)5.95
Price to Sales (P/S)4.31
P/FCF Ratio29.75
Enterprise Value/Market Cap9.98
Enterprise Value/Revenue5.67
Enterprise Value/Gross Profit15.72
Enterprise Value/Ebitda23.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$7.05B
Epiroc AB Business Overview & Revenue Model
Company Description
Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in North America, Europe, South America, Europe, Africa, the Middle East, Asia, Australia, and India. It operates in ...
How the Company Makes Money
Epiroc makes money primarily by selling capital equipment and by earning recurring aftermarket revenue tied to the ongoing operation of that equipment in mining and infrastructure applications.
1) Equipment sales (capital goods): A major revenue ...
Epiroc AB Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presents a solid operational and financial performance with notable wins in automation, electrification and strong organic equipment and service growth (full‑year orders +7% organically; Q4 equipment orders +22% organically). Profitability has been defended well (adjusted operating margin ~19.6%) while the balance sheet and cash generation strengthened (net debt down, strong cash conversion). Headwinds from currency, tariffs and rising input costs (notably tungsten) and persistent weakness in construction/attachments and nickel‑exposed service demand are meaningful but appear manageable given active mitigation steps, efficiency programs and strong market positioning. Overall, highlights around innovation, large contract wins, improved cash and margin recovery outweigh the material but addressable lowlights.Positive Updates
Organic Order and Revenue Growth (Full Year 2025)
Orders grew organically by 7% to SEK 63.0 billion and revenues increased 2% to SEK 62.0 billion for the full year, demonstrating underlying demand resilience despite currency and tariff headwinds.
Negative Updates
Currency Headwinds
Currency reduced reported revenues significantly: Q4 group revenues fell 7% to SEK 16.1 billion, with a negative currency impact of ~11% on revenues and similar negative effects on orders in certain areas (e.g., -12% on Equipment & Service orders including currency).
Read all updates
Q4-2025 Updates
Positive
Negative
Organic Order and Revenue Growth (Full Year 2025)
Orders grew organically by 7% to SEK 63.0 billion and revenues increased 2% to SEK 62.0 billion for the full year, demonstrating underlying demand resilience despite currency and tariff headwinds.
Read all positive updates
Company Guidance
The management provided clear near‑term guidance: they expect mining demand to remain high while construction demand should increase somewhat from a low level, and tariff headwinds that subtracted just below 0.5 percentage points from Q4 operating margin will persist into 2026 but decline quarter‑by‑quarter; tax guidance is an effective rate of 22–24%; adjusted operating margin was 19.6% (Q4 and FY 2025) and management expects margin improvement from ongoing efficiency actions (more detail to be given at the CMD on June 8–9); orders grew organically 7% in 2025 to SEK 63bn (Q4 organic +11% to ~SEK 16bn) with equipment orders up 22% and large mining orders of SEK 670m in Q4, service (41% of revenues) grew organically 4% in Q4 (management aims to return toward historical ~8% p.a.), aftermarket was 63% of revenues, electrification was 3.8% of group revenues, and capital allocation priorities for 2026 are continued organic investment, bolt‑on M&A, and a proposed ordinary dividend of SEK 3.80/share (SEK 4.6bn, ~53% of net profit); balance sheet metrics include net debt SEK 11bn, cash SEK 9.6bn, net debt/EBITDA 0.73, operating cash flow SEK 2.6bn and 12‑month cash conversion ~90%, with net working capital at SEK 22bn (36.9% of revenues) providing room to pursue these plans.Epiroc AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.51B | 58.28B | 63.60B | 60.34B | 49.69B | 39.65B |
| Gross Profit | 21.82B | 21.60B | 22.95B | 23.15B | 19.02B | 15.45B |
| EBITDA | 14.40B | 14.11B | 15.83B | 15.85B | 13.07B | 9.94B |
| Net Income | 8.47B | 8.09B | 8.73B | 9.43B | 8.40B | 7.06B |
Balance Sheet | ||||||
| Total Assets | 83.04B | 80.38B | 83.59B | 67.78B | 61.78B | 48.58B |
| Cash, Cash Equivalents and Short-Term Investments | 9.16B | 10.94B | 7.18B | 6.40B | 7.33B | 10.79B |
| Total Debt | 19.73B | 21.02B | 21.57B | 13.56B | 10.74B | 9.18B |
| Total Liabilities | 37.38B | 38.11B | 40.41B | 30.57B | 28.27B | 22.80B |
| Stockholders Equity | 45.65B | 42.26B | 42.76B | 36.82B | 33.02B | 25.73B |
Cash Flow | ||||||
| Free Cash Flow | 8.02B | 8.45B | 8.60B | 5.46B | 4.54B | 6.68B |
| Operating Cash Flow | 10.07B | 10.37B | 10.46B | 7.14B | 5.56B | 7.61B |
| Investing Cash Flow | -3.39B | -2.77B | -11.69B | -5.24B | -5.99B | -3.47B |
| Financing Cash Flow | -6.40B | -4.95B | 1.90B | -2.64B | -3.23B | -8.44B |
Epiroc AB Technical Analysis
Positive
22.43
Price Trends
26.97
Positive
25.38
Positive
23.36
Positive
Market Momentum
0.43
Negative
61.21
Neutral
86.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPOAY, the sentiment is Positive. The current price of 22.43 is below the 20-day moving average (MA) of 25.46, below the 50-day MA of 26.97, and below the 200-day MA of 23.36, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 86.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPOAY.
Epiroc AB Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $431.29B | 32.20 | 47.51% | 0.98% | 11.85% | -2.07% | |
71 Outperform | $34.37B | 32.27 | 21.07% | ― | 5.58% | 7.51% | |
66 Neutral | $9.82B | 14.86 | 14.57% | 1.56% | -3.10% | -3.16% | |
65 Neutral | $159.81B | 54.83 | 18.93% | 1.34% | -2.66% | -21.47% | |
65 Neutral | $61.32B | 25.13 | 12.81% | 3.83% | -14.13% | -28.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $13.42B | 487.54 | 6.58% | 2.67% | -4.05% | -62.88% |
* Industrials Sector Average
EPOAY
Epiroc AB
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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.