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Epiroc AB
(OTC:EPOAY)
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Rating:68Neutral
Price Target:
$29.00
â–²(13.73% Upside)
Action:Reiterated
Date:07/18/26
The score is driven primarily by solid underlying financial performance (healthy margins and returns, with cash flow as the main weak spot) and a notably positive latest earnings call (strong orders/revenues, margin improvement, and better cash conversion). Offsetting these strengths, technical signals are clearly bearish (below key moving averages with negative MACD), and valuation is less supportive given the high P/E and modest dividend yield.
Positive Factors
Aftermarket recurring revenue mix
A 64% aftermarket share implies a large installed base and recurring revenue from services, parts and consumables. This supports revenue stability, higher lifetime customer value and margin resilience versus pure equipment sales, sustaining cash flow through cycles.
Negative Factors
Inventory and working capital buildup
Rising inventories and a 10% lift in net working capital tie up cash and weigh on free cash flow. If demand softens or production ramp issues persist, excess stock could pressure margins and liquidity over the coming months and reduce capital available for strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftermarket recurring revenue mix
A 64% aftermarket share implies a large installed base and recurring revenue from services, parts and consumables. This supports revenue stability, higher lifetime customer value and margin resilience versus pure equipment sales, sustaining cash flow through cycles.
Read all positive factors
Epiroc AB (EPOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.91B
Dividend Yield1%
Average Volume (3M)961.00
Price to Earnings (P/E)34.0
Beta (1Y)1.16
Revenue Growth8.78%
EPS Growth9.20%
CountryUS
Employees18,854
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)7.30
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 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)0.87
Revenue Forecast (FY)$6.91B
Epiroc AB Business Overview & Revenue Model
Company Description
Epiroc AB, a publicly listed entity, stands as a prominent global provider of equipment and innovative solutions for both surface and underground operations. Its extensive presence spans regions including North and South America, Europe, Africa, t...
How the Company Makes Money
Epiroc makes money by selling equipment, consumables, and a large portfolio of aftermarket services to mining and infrastructure customers. (1) Equipment sales: A major revenue stream comes from the sale of capital equipment used in rock excavatio...
Epiroc AB Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: double-digit organic revenue and order growth, a 30% rise in equipment orders, improved adjusted operating margin above 20%, stronger operating cash flow, and a reduced net debt position. These gains were supported by efficiency measures and robust aftermarket resilience. Headwinds and risks remain — notably inventory build-up, FX volatility, mix pressure from higher equipment sales, and some quarter-to-quarter variability in service (mid-life rebuilds) — but management has mitigations in place and sees a healthy pipeline, particularly in mining and exploration. On balance, the positive operational momentum and financial improvements outweigh the challenges.Positive Updates
Order Growth and Demand
Orders received increased 13% organically to SEK 17.3 billion; equipment orders grew 30% organically and service orders increased 6%. This marks the ninth consecutive quarter of organic order growth and continued strong demand, especially in mining and exploration.
Negative Updates
Inventory Build-up and Working Capital Increase
Net working capital rose to SEK 24.9 billion (up 10% YoY). Inventories increased by SEK 4.6 billion, driving the working capital increase even though net working capital as a percent of revenues improved slightly to 37.1% from 37.5%.
Read all updates
Q2-2026 Updates
Positive
Negative
Order Growth and Demand
Orders received increased 13% organically to SEK 17.3 billion; equipment orders grew 30% organically and service orders increased 6%. This marks the ninth consecutive quarter of organic order growth and continued strong demand, especially in mining and exploration.
Read all positive updates
Company Guidance
Guidance: Management expects mining demand to remain high and demand from infrastructure customers to increase somewhat, and they see equipment revenues staying strong into H2‑2026; they reiterated their ambition to deliver ~8% growth and noted tax guidance of 22–24% (Q2 effective tax rate 23.9%). Key supporting Q2 metrics cited were orders received +13% organic to SEK 17.3bn (equipment orders +30%, service orders +6%), invoicing +11% organic to SEK 16.7bn, adjusted EBIT margin ~20.1% (EBIT SEK 3.3bn; adj. EBIT SEK 3.35bn), operating cash flow SEK 1.9bn with 12‑month cash conversion 93%, net working capital SEK 24.9bn (37.1% of revenues), net debt SEK 11.4bn (net debt/EBITDA 0.75) and ROCE 19.3%.Epiroc AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.36B | 58.28B | 63.60B | 60.34B | 49.69B | 39.65B |
| Gross Profit | 22.27B | 21.60B | 22.95B | 23.15B | 19.02B | 15.45B |
| EBITDA | 14.99B | 14.11B | 15.83B | 15.86B | 13.07B | 9.94B |
| Net Income | 8.84B | 8.09B | 8.73B | 9.43B | 8.40B | 7.06B |
Balance Sheet | ||||||
| Total Assets | 85.89B | 80.38B | 83.59B | 67.85B | 61.78B | 48.58B |
| Cash, Cash Equivalents and Short-Term Investments | 8.63B | 10.94B | 7.18B | 6.40B | 7.33B | 10.79B |
| Total Debt | 18.73B | 20.33B | 21.57B | 13.56B | 10.74B | 9.18B |
| Total Liabilities | 41.29B | 38.11B | 40.41B | 30.57B | 28.27B | 22.80B |
| Stockholders Equity | 44.59B | 42.26B | 42.76B | 36.82B | 33.02B | 25.73B |
Cash Flow | ||||||
| Free Cash Flow | 7.92B | 8.45B | 8.60B | 5.46B | 4.54B | 6.68B |
| Operating Cash Flow | 9.79B | 10.37B | 10.46B | 7.14B | 5.56B | 7.61B |
| Investing Cash Flow | -2.68B | -2.77B | -11.69B | -5.24B | -5.99B | -3.47B |
| Financing Cash Flow | -8.11B | -4.95B | 1.90B | -2.64B | -3.23B | -8.44B |
Epiroc AB Technical Analysis
Negative
25.50
Price Trends
26.69
Negative
27.03
Negative
25.73
Positive
Market Momentum
0.03
Negative
49.16
Neutral
38.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPOAY, the sentiment is Negative. The current price of 25.5 is below the 20-day moving average (MA) of 25.71, below the 50-day MA of 26.69, and below the 200-day MA of 25.73, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $68.84B | 27.48 | 12.73% | 2.05% | -10.49% | -18.64% | |
72 Outperform | $393.74B | 36.70 | 54.14% | 0.69% | 18.36% | 18.23% | |
72 Outperform | $9.44B | 17.39 | 12.32% | 1.39% | 1.93% | -12.16% | |
68 Neutral | $29.91B | 33.97 | 20.42% | 1.03% | 8.78% | 9.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $164.35B | 34.42 | 18.25% | 1.03% | 3.98% | -14.68% | |
50 Neutral | $12.92B | 41.98 | 4.01% | 0.90% | 0.60% | -62.01% |
* 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.