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Epiroc AB (EPOAY)
OTHER OTC:EPOAY
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Epiroc AB
(OTC:EPOAY)
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Rating:85Outperform
Price Target:―
Epiroc AB's overall stock score reflects its strong financial performance and positive earnings call sentiment, driven by growth in strategic areas like mining and digital solutions. While the technical indicators are favorable, the relatively high valuation and challenges in the construction sector slightly temper the score.
Epiroc AB (EPOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.10B
Dividend YieldN/A
Average Volume (3M)47.75K
Price to Earnings (P/E)31.7
Beta (1Y)0.95
Revenue Growth6.55%
EPS Growth7.63%
CountryUS
Employees18,655
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.20
Shares Outstanding823,766,000
10 Day Avg. Volume33,546
30 Day Avg. Volume47,754
Financial Highlights & Ratios
PEG Ratio-3.58
Price to Book (P/B)5.42
Price to Sales (P/S)3.65
P/FCF Ratio26.95
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit1.20
Enterprise Value/Ebitda1.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Epiroc AB Business Overview & Revenue Model
Company DescriptionEpiroc AB is a leading productivity partner for the mining, infrastructure, and natural resources industries. The company develops and manufactures innovative, safe, and sustainable drill rigs, rock excavation and construction equipment, and provides world-class service and consumables. Headquartered in Sweden, Epiroc serves customers in more than 150 countries, focusing on enhancing productivity and safety standards through advanced technology and automation.
How the Company Makes MoneyEpiroc AB generates revenue primarily through the sale of equipment and aftermarket services to the mining and infrastructure sectors. Key revenue streams include the sale of new equipment, such as drill rigs and rock excavation tools, and the provision of aftermarket services, including maintenance, spare parts, and consumables. The company also benefits from long-term customer relationships and strategic partnerships that enhance its market presence and expand its service offerings. Additionally, Epiroc invests in research and development to innovate and improve its product lines, which supports sustained growth and profitability.
Epiroc AB Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in key growth areas such as mining, digital solutions, and electrification, with record-high orders and cash flow. However, the company faced challenges in the construction market, impacting margins, and ongoing integration issues with recent acquisitions. Despite these challenges, the overall sentiment is positive due to strategic growth and operational achievements.Q4-2024 Updates
Positive Updates
Record High Orders and Revenues
Epiroc achieved record highs for orders received and revenues in 2024, supported by strong demand in mining and strategic growth areas like automation and digital solutions.
Strong Growth in Digital Solutions
Orders in the Digital Solutions division increased by more than 30% in 2024, demonstrating significant demand for automation and safety solutions.
Significant Progress in Electrification
Electrification revenues accounted for 4.2% of the group's total, with notable increases in battery electric vehicle (BEV) fleet utilization.
Operational Excellence and Workforce Efficiency
Implemented efficiency measures resulted in a reduction of 1,135 employees in 2024, with further efficiencies expected.
Record High Cash Flow
Operating cash flow increased by over 60% year-over-year, reaching nearly SEK 4 billion, supported by strong equipment invoicing and inventory reduction.
Strong Market Position in Mining
Mining represented 78% of orders in Q4, with strong demand for automation and digitalization solutions.
Recognition for Sustainable Growth
Epiroc was named one of the 'World's Best Companies in Sustainable Growth 2025' by TIME Magazine and Statista.
Negative Updates
Weak Construction Market Impact
The operating profit margin decreased due to weaker construction demand and dilution from recent acquisitions.
Challenges with Stanley Infrastructure Acquisition
The acquisition led to a 1.4 percentage point dilution in the adjusted EBIT margin, with operational inefficiencies still being addressed.
Continued Weakness in Construction Demand
Demand from construction customers remained weak, impacting the attachment business and overall revenue mix.
Higher Emissions from Transport
Emissions from transport increased by 8%, mainly due to more aftermarket deliveries including air freight.
Company Guidance
In the recent call, Epiroc provided guidance for fiscal year 2024, highlighting record highs in orders received and revenues despite a weaker construction market. The operating profit margin decreased, mainly due to lower construction demand and acquisition-related dilution, resulting in an adjusted EBIT margin of 19.8%. The company executed efficiency actions, reducing the workforce by 1,135 employees, and aimed to improve the adjusted operating margin from its current 19.7%. Epiroc reported strong growth in strategic areas like automation, digitalization, and electrification, with digital solutions orders increasing by over 30% and electrification revenues reaching 4.2% of the total. The company also achieved significant product launches and maintained a focus on sustainability, reducing operational emissions by 9%. Looking ahead, Epiroc expects strong mining demand to continue, while construction demand remains weak.Epiroc AB Financial Statement Overview
Summary
Epiroc AB showcases a strong financial standing with significant revenue growth, impressive cash flow generation, and a debt-free balance sheet. The company maintains robust profit margins, although a slight decline in net profit margin suggests the need for improved cost management.Income Statement
Epiroc AB demonstrates strong revenue growth with a 6% increase from 2023 to 2024, supported by solid gross profit margins consistently above 35%. The EBIT and EBITDA margins have remained robust, indicating effective cost management and operational efficiency. However, a slight decline in net profit margin from 15.63% in 2023 to 13.72% in 2024 suggests increased expenses or tax impacts that need monitoring.85
Very Positive
Balance Sheet
The balance sheet is strong with a zero debt-to-equity ratio in 2024, reflecting a debt-free position, which is a significant strength. The equity ratio has improved to 51.13%, indicating a well-capitalized structure. Return on equity, though slightly decreased from 25.61% in 2023 to 20.42% in 2024, remains healthy, demonstrating efficient use of equity capital.90
Very Positive
Cash Flow
The company shows impressive free cash flow growth of 57.73% from 2023 to 2024, coupled with a strong operating cash flow to net income ratio of 1.20 in 2024, indicating robust cash generation capability. The free cash flow to net income ratio of 0.99 highlights effective conversion of earnings into cash, supporting future investments and dividends.92
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 63.60B | 60.34B | 49.69B | 39.65B | 36.12B |
| Gross Profit | 22.95B | 23.15B | 19.02B | 15.45B | 13.70B |
| EBITDA | 15.83B | 15.85B | 13.07B | 10.85B | 8.98B |
| Net Income | 8.73B | 9.43B | 8.40B | 7.06B | 5.40B |
Balance Sheet | |||||
| Total Assets | 83.59B | 67.78B | 61.78B | 48.58B | 43.89B |
| Cash, Cash Equivalents and Short-Term Investments | 8.66B | 6.40B | 7.33B | 10.79B | 15.05B |
| Total Debt | 0.00 | 13.56B | 10.74B | 9.18B | 10.06B |
| Total Liabilities | 40.41B | 30.57B | 28.27B | 22.80B | 20.15B |
| Stockholders Equity | 42.76B | 36.82B | 33.02B | 25.73B | 23.69B |
Cash Flow | |||||
| Free Cash Flow | 8.60B | 5.46B | 4.54B | 6.68B | 7.33B |
| Operating Cash Flow | 10.46B | 7.14B | 5.56B | 7.61B | 8.33B |
| Investing Cash Flow | -11.69B | -5.24B | -5.99B | -3.47B | -608.00M |
| Financing Cash Flow | 1.90B | -2.64B | -3.23B | -8.44B | -990.00M |
Epiroc AB Technical Analysis
Positive
23.18
Price Trends
21.20
Positive
21.45
Positive
20.70
Positive
Market Momentum
0.34
Negative
63.64
Neutral
78.39
Neutral
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 23.18 is above the 20-day moving average (MA) of 21.69, above the 50-day MA of 21.20, and above the 200-day MA of 20.70, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 78.39 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $27.10B | 31.65 | 22.74% | ― | 6.55% | 7.63% | |
74 Outperform | $8.63B | 13.53 | 15.52% | 1.46% | 0.41% | -3.90% | |
73 Outperform | $245.79B | 26.68 | 52.73% | 1.14% | -4.87% | -10.47% | |
73 Outperform | $51.19B | 16.71 | 14.15% | 4.00% | -15.29% | -42.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $125.01B | 24.18 | 21.59% | 1.41% | -20.63% | -34.82% | |
57 Neutral | $13.15B | 15.89 | 10.79% | 2.35% | -21.70% | -57.68% |
* Industrials Sector Average
EPOAY
Epiroc AB
23.14
3.80
19.65%
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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.