Sandvik AB (SDVKY) AI Stock Analysis

• Market Cap: $42.97B
• Dividend Yield: 1.86%
• Average Volume (3M): 1.29K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.07
• Revenue Growth: 2.17%
• EPS Growth: 25.95%
• Country: US
• Employees: 41,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 1,254,386,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,287
• PEG Ratio: -1.02
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 15.76
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.03
• Enterprise Value/Ebitda: 1.75
• 1Y Price Target: $34.76
• Price Target Upside: 3.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $35.00 ▲(3.77% Upside)

Sandvik AB's strong financial performance is the most significant factor, supported by robust revenue growth and a solid balance sheet with no debt. Technical analysis indicates positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is relatively expensive, which slightly tempers the overall score.

Positive Factors

Strong Order Intake

Record order intake indicates robust demand and effective market positioning, supporting future revenue stability and growth.

Cash Flow Generation

Strong cash flow enhances financial flexibility, enabling strategic investments and sustaining operations during market fluctuations.

Innovative Product Launch

Innovative product launches enhance competitive advantage and align with sustainability trends, driving long-term growth.

Negative Factors

Revenue Decline

A decline in total revenue can hinder growth prospects, necessitating strategic adjustments to maintain market competitiveness.

Sector Challenges

Weak demand in key sectors like engineering and automotive could limit revenue potential, requiring diversification or innovation.

ERP Implementation Issues

ERP issues can disrupt operations and efficiency, impacting short-term performance and necessitating corrective measures.

Sandvik AB Business Overview & Revenue Model

Company Description

Sandvik 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 Money

Sandvik AB generates revenue through multiple key segments: Mining and Rock Solutions, which supplies equipment and services for the mining industry; Metal Cutting Solutions, offering tools and technology for metalworking; and Materials Technology, focusing on advanced materials and manufacturing solutions. The company earns money primarily through the sale of equipment, tools, and aftermarket services, including maintenance and repairs. Significant partnerships with major industrial players and a strong focus on R&D enable Sandvik to maintain a competitive edge, driving consistent revenue growth. Additionally, the company benefits from a global presence, allowing it to tap into diverse markets and mitigate risks associated with economic fluctuations in specific regions.

Sandvik AB Financial Statement Overview

Summary

Sandvik AB exhibits strong financial health, driven by consistent revenue growth, effective cost management, and efficient cash flow generation. The balance sheet has improved significantly with no outstanding debt, reflecting sound financial strategies. Continued attention to asset management and capital allocation will be crucial for sustaining growth and profitability in the long term.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.22B	122.88B	126.50B	112.33B	99.11B	86.40B
Gross Profit	38.50B	49.14B	52.05B	45.37B	40.17B	32.24B
EBITDA	22.67B	26.99B	30.68B	25.80B	23.65B	17.28B
Net Income	11.62B	12.24B	15.30B	11.21B	14.46B	8.73B
Balance Sheet
Total Assets	18.28B	184.38B	174.21B	176.68B	155.52B	119.13B
Cash, Cash Equivalents and Short-Term Investments	365.55M	4.53B	4.36B	10.49B	13.59B	23.75B
Total Debt	4.89B	42.76B	45.08B	52.06B	34.35B	17.89B
Total Liabilities	8.62B	87.39B	86.51B	95.41B	78.19B	54.05B
Stockholders Equity	9.65B	96.92B	87.63B	81.23B	77.20B	65.08B
Cash Flow
Free Cash Flow	11.03B	15.77B	13.44B	5.93B	9.60B	12.15B
Operating Cash Flow	14.46B	20.61B	18.80B	10.46B	13.18B	15.35B
Investing Cash Flow	-5.60B	-7.67B	-8.51B	-20.30B	-26.19B	-4.78B
Financing Cash Flow	-9.16B	-12.99B	-16.21B	6.22B	2.49B	-3.31B

Sandvik AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.73 is above the 20-day moving average (MA) of 32.29, above the 50-day MA of 31.08, and above the 200-day MA of 25.76, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 68.11 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	79 Outperform	$114.38B	32.80	27.30%	0.79%	0.22%	26.66%
SDVKY	76 Outperform	$42.97B	29.56	15.72%	1.86%	2.17%	25.95%
EMR	76 Outperform	$80.81B	35.64	10.91%	1.58%	2.97%	18.14%
ETN	75 Outperform	$124.51B	32.45	20.69%	1.29%	8.24%	6.21%
ITW	71 Outperform	$73.61B	24.76	91.71%	2.43%	-0.41%	-10.88%
ROK	71 Outperform	$45.38B	53.55	24.24%	1.33%	0.98%	-7.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%