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Sandvik AB (SDVKY)
OTHER OTC:SDVKY
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Sandvik AB
(OTC:SDVKY)
Select Model
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Rating:76Outperform
Price Target:
$28.00
â–²(1.86% Upside)
Sandvik AB's overall stock score reflects its strong financial performance and positive technical indicators. The company's strategic growth initiatives and successful mitigation of challenges in the earnings call contribute positively. However, valuation concerns and sector-specific challenges slightly temper the outlook.
Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.77B
Dividend Yield2.2%
Average Volume (3M)1.65K
Price to Earnings (P/E)24.5
Beta (1Y)1.08
Revenue Growth0.75%
EPS Growth15.68%
CountryUS
Employees41,400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.26
Shares Outstanding1,254,386,000
10 Day Avg. Volume0
30 Day Avg. Volume1,646
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.68
Enterprise Value/Ebitda1.16
Forecast
1Y Price Target
$28.00Price Target Upside1.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Sandvik AB Business Overview & Revenue Model
Company DescriptionSandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally. The company offers mining and rock solutions, including drill rigs, underground loaders and trucks, rock drills and other tools, and parts and services, as well as digital and sustainability solutions; and rock processing applications, which include crushing, screening, feeding, breaking, demolition, and recycling. It also provides manufacturing solutions, comprising traditional metal cutting under the Sandvik Coromant, Walter, Wolfram, Seco, and Dormer Pramet brands; and manufactures tools and tooling systems for advanced metal cutting. In addition, the company develops and manufactures advanced stainless steels, powder-based alloys, and special alloys. It serves aerospace, automotive, construction, mining, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries. The company was founded in 1862 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneySandvik AB generates revenue through multiple key streams. The primary revenue comes from the sale of cutting tools and tooling systems, which are essential for various manufacturing processes. Sandvik Mining and Rock Solutions contributes significantly by providing equipment, tools, and services for mining and construction operations, capitalizing on the growing demand for raw materials and infrastructure development. Additionally, the Sandvik Materials Technology segment offers high-performance materials and solutions, catering to industries such as aerospace, energy, and automotive. The company also establishes strategic partnerships with other firms and industries to enhance its product offerings and market reach. Maintenance and service contracts further bolster revenue as they ensure ongoing customer support and product lifecycle management. Overall, Sandvik's diversified portfolio and focus on innovation help maintain its competitive edge and drive profitability.
Sandvik AB Earnings Call Summary
Earnings Call Date:Jul 16, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixture of positive and negative aspects. While the company reported record order intake, strong cash flow, and successful mitigation of tariffs, it also faced challenges such as a decline in total revenue, ongoing softness in key sectors like general engineering and automotive, significant currency headwinds, and ERP implementation issues.Q2-2025 Updates
Positive Updates
Record Order Intake
Order intake reached an all-time high level, with organic growth of 10%. This was primarily driven by strong momentum in the Mining and powder solutions segments.
Strong Cash Flow
The company reported a strong cash flow of SEK 5.1 billion compared to SEK 4.2 billion in the same period last year.
Largest Battery Electric Vehicle Order
The company booked its largest battery electric vehicle order ever during the quarter.
Successful Mitigation of Tariffs
The company successfully offset the impact of tariffs through pricing actions during the quarter.
Innovative Product Launch
Introduction of the Vericut Optimizer, a product that won the Sandvik Sustainability Award in 2025.
Negative Updates
Revenue Decline
Total revenue decreased by 5%, although it grew organically by 3%.
Challenges in General Engineering and Automotive
Demand in general engineering and automotive sectors continued to be soft, with automotive down high single digits in Europe and North America.
Currency Headwinds
Significant currency headwinds negatively impacted profitability, diluting the margin by 40 basis points.
ERP Implementation Issues
The ERP go-live caused under-absorption and negatively impacted invoicing in the Rock Tools division.
Company Guidance
In the second quarter of 2025, Sandvik reported an all-time high order intake, with organic growth of 10%, despite stable year-on-year figures. Total revenue decreased by 5%, but organically grew by 3%. The company achieved an adjusted EBITA of SEK 5.6 billion, with a margin of 19%, slightly down from 19.6% last year. Adjusted profit was SEK 3.7 billion, compared to SEK 3.9 billion the previous year. Sandvik's cash flow improved to SEK 5.1 billion, up from SEK 4.2 billion. The company also saw significant progress in strategic areas, including their largest battery electric vehicle order and continued acquisitions. The geographical performance varied, with North America showing a 32% increase, driven by strong mining activity, while Europe and Asia experienced declines. In terms of market segments, mining showed robust momentum, with equipment orders up 50%. In contrast, general engineering and automotive sectors were weak. The company maintained a solid book-to-bill ratio of 108% and increased its order backlog to an all-time high, reflecting strong demand and strategic growth initiatives.Sandvik AB Financial Statement Overview
Summary
Sandvik AB shows strong financial health with consistent revenue growth, efficient cost management, and robust cash flow generation. The balance sheet is solid with a significant reduction in debt, enhancing financial stability. However, strategic reinvestment in assets is necessary for long-term sustainability.Income Statement
Sandvik AB has demonstrated strong and consistent revenue growth over the years, with a notable increase in TTM. The Gross Profit Margin remains solid, indicating efficient cost management. The Net Profit Margin has improved over the years, reflecting enhanced profitability. EBIT and EBITDA margins show healthy operational efficiency, contributing to a robust income statement.85
Very Positive
Balance Sheet
The balance sheet is strong, with a significant reduction in total debt over the TTM period, leading to a healthier debt-to-equity ratio at zero. The company's equity ratio is solid, indicating a stable financial position. The return on equity is impressive, demonstrating effective use of shareholder funds. However, the reduction in total assets might suggest a need for strategic reinvestment.78
Positive
Cash Flow
Cash flow analysis reveals consistent free cash flow generation, with a positive growth rate in TTM, supporting financial flexibility. The operating cash flow to net income ratio suggests strong cash conversion, while the free cash flow to net income ratio reinforces operational efficiency. However, capital expenditures are relatively high, which might impact future cash reserves.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.46B | 122.88B | 126.50B | 112.33B | 99.11B | 86.40B |
| Gross Profit | 49.46B | 49.14B | 52.05B | 45.37B | 40.17B | 32.24B |
| EBITDA | 28.94B | 26.99B | 29.88B | 25.34B | 23.65B | 17.28B |
| Net Income | 14.49B | 12.24B | 15.30B | 11.21B | 14.46B | 8.73B |
Balance Sheet | ||||||
| Total Assets | 173.49B | 184.38B | 174.21B | 176.68B | 155.52B | 119.13B |
| Cash, Cash Equivalents and Short-Term Investments | 3.45B | 4.53B | 4.36B | 10.49B | 13.59B | 23.75B |
| Total Debt | 0.00 | 42.76B | 45.08B | 52.06B | 34.35B | 17.89B |
| Total Liabilities | 85.78B | 87.39B | 86.51B | 95.41B | 78.19B | 54.05B |
| Stockholders Equity | 87.65B | 96.92B | 87.63B | 81.23B | 77.20B | 65.08B |
Cash Flow | ||||||
| Free Cash Flow | 15.99B | 15.77B | 13.44B | 5.93B | 9.60B | 12.15B |
| Operating Cash Flow | 20.51B | 20.61B | 18.80B | 10.46B | 13.18B | 15.35B |
| Investing Cash Flow | -8.12B | -7.67B | -8.51B | -20.30B | -26.19B | -4.78B |
| Financing Cash Flow | -13.96B | -12.99B | -16.21B | 6.22B | 2.49B | -3.31B |
Sandvik AB Technical Analysis
Positive
27.49
Price Trends
25.24
Positive
23.66
Positive
21.99
Positive
Market Momentum
0.68
Negative
70.65
Negative
91.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDVKY, the sentiment is Positive. The current price of 27.49 is above the 20-day moving average (MA) of 26.03, above the 50-day MA of 25.24, and above the 200-day MA of 21.99, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 70.65 is Negative, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDVKY.
Sandvik AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 93.55B | 27.23 | 25.81% | 0.91% | -0.40% | 24.40% | |
76 Outperform | $33.77B | 24.52 | 15.82% | 2.20% | 0.75% | 15.68% | |
76 Outperform | 141.45B | 36.56 | 21.05% | 1.09% | 7.66% | 9.19% | |
73 Outperform | 73.73B | 28.14 | 13.35% | 1.60% | 4.78% | 59.68% | |
73 Outperform | 38.75B | 40.44 | 28.01% | 1.50% | -8.23% | -3.29% | |
73 Outperform | 76.51B | 23.03 | 104.83% | 2.28% | -1.40% | 11.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
SDVKY
Sandvik AB
27.49
6.06
28.28%
ETN
Eaton
371.27
46.55
14.34%
EMR
Emerson Electric Company
131.91
27.75
26.64%
ITW
Illinois Tool Works
263.59
11.69
4.64%
PH
Parker Hannifin
755.70
135.82
21.91%
ROK
Rockwell Automation
348.56
84.89
32.20%
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.