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Sandvik AB (SDVKY)
OTHER OTC:SDVKY
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Sandvik AB
(OTC:SDVKY)
Rating:78Outperform
Price Target:
$27.00
â–²(10.20%Upside)
Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.55B
Dividend Yield2.48%
Average Volume (3M)1.24K
Price to Earnings (P/E)21.4
Beta (1Y)1.07
Revenue Growth0.75%
EPS Growth15.68%
CountryUS
Employees41,400
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.26
Shares Outstanding1,254,386,000
10 Day Avg. Volume1,273
30 Day Avg. Volume1,240
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)3.09
Price to Sales (P/S)0.00
P/FCF Ratio21.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 primarily through the sale of equipment, tools, and services across its various business segments. In the mining and rock solutions sector, the company earns income by providing equipment and tools used for drilling, rock excavation, and crushing. Sandvik's manufacturing and machining solutions segment contributes to revenue through the sale of tools, tooling systems, and digital manufacturing solutions for the metal-cutting industry. Additionally, the materials technology division generates revenue by offering advanced materials and industrial heating solutions. Sandvik's revenue model is further supported by aftermarket services, which include maintenance, repair, and training services, enhancing customer relationships and ensuring recurring income. Strategic partnerships and continuous innovation also play a crucial role in driving Sandvik's earnings, as the company collaborates with industry leaders to develop cutting-edge technologies and solutions that meet evolving market demands.
Sandvik AB Earnings Call Summary
Earnings Call Date:Jul 16, 2025
(Q2-2025)
| % Change Since: 3.73%|
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in Mining and strategic progress with significant order intake, but was offset by revenue declines, currency headwinds, and challenges in several segments, including automotive and infrastructure.Q2-2025 Updates
Positive Updates
Record Order Intake
Order intake reached an all-time high, driven by strong momentum in Mining and powder solutions. Organic order intake grew by 10% year-on-year.
Strong Cash Flow
Cash flow for the quarter was SEK 5.1 billion, compared to SEK 4.2 billion in the same period last year.
Strategic Progress
Largest battery-electric vehicle order booked in the quarter, plus acquisitions expanding reach in faster-growing segments.
North American Growth
Revenue in North America was up 32%, driven by strong performance in Mining.
Negative Updates
Revenue Decline
Total revenue decreased by 5%, although it grew organically by 3%.
Currency Headwinds
Significant currency headwinds with a negative impact of 11% on order intake and 10% on revenues.
Weak Segments
General engineering, automotive, and infrastructure segments continued to exhibit weakness.
Challenges in China
Asia revenue was down 5%, with cutting tools in China down mid-single digits.
Company Guidance
In the call, Sandvik reported strong performance in the second quarter of 2025 with an all-time high order intake, despite facing significant currency headwinds. Organic order intake grew by 10%, while total revenue decreased by 5%, though it rose by 3% organically. The company's adjusted EBITA was SEK 5.6 billion, with a margin of 19%, slightly down from 19.6% the previous year. Sandvik also noted a strong cash flow of SEK 5.1 billion, up from SEK 4.2 billion last year. The company highlighted robust growth in the mining sector, particularly in North America, and a stable development in the software and aerospace segments. While facing challenges such as tariffs, which were fully mitigated, Sandvik maintained a solid order backlog and continued to execute strategic acquisitions and innovations, such as the Vericut Optimizer, which won the Sandvik Sustainability Award in 2025. The company remains confident in its ability to navigate the challenging macro environment, supported by its resilient profitability and strategic initiatives.Sandvik AB Financial Statement Overview
Summary
Sandvik AB exhibits strong financial health with consistent revenue growth and efficient cash flow generation. The balance sheet shows a significant reduction in debt, reflecting sound financial strategies. Continued focus on asset management and capital allocation is important for sustained growth.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 122.88B | 126.50B | 112.33B | 99.11B | 86.40B |
| Gross Profit | 49.14B | 52.05B | 45.37B | 40.17B | 32.24B |
| EBITDA | 26.99B | 29.88B | 25.34B | 23.65B | 17.28B |
| Net Income | 12.24B | 15.30B | 11.21B | 14.46B | 8.73B |
Balance Sheet | |||||
| Total Assets | 184.38B | 174.21B | 176.68B | 155.52B | 119.13B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 4.36B | 10.49B | 13.59B | 23.75B |
| Total Debt | 42.76B | 45.08B | 52.06B | 34.35B | 17.89B |
| Total Liabilities | 87.39B | 86.51B | 95.41B | 78.19B | 54.05B |
| Stockholders Equity | 96.92B | 87.63B | 81.23B | 77.20B | 65.08B |
Cash Flow | |||||
| Free Cash Flow | 15.77B | 13.44B | 5.93B | 9.60B | 12.15B |
| Operating Cash Flow | 20.61B | 18.80B | 10.46B | 13.18B | 15.35B |
| Investing Cash Flow | -7.67B | -8.51B | -20.30B | -26.19B | -4.78B |
| Financing Cash Flow | -12.99B | -16.21B | 6.22B | 2.49B | -3.31B |
Sandvik AB Technical Analysis
Positive
24.50
Price Trends
22.45
Positive
21.82
Positive
20.80
Positive
Market Momentum
0.55
Negative
68.18
Neutral
63.79
Neutral
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 24.5 is above the 20-day moving average (MA) of 23.13, above the 50-day MA of 22.45, and above the 200-day MA of 20.80, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.79 is Neutral, 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $29.55B | 21.42 | 15.82% | 2.48% | 0.75% | 15.68% | |
77 Outperform | $14.37B | 30.33 | 20.28% | 1.28% | -0.40% | -2.50% | |
76 Outperform | $12.41B | 25.33 | 19.27% | 0.89% | 6.99% | 23.25% | |
73 Outperform | $34.75B | 43.38 | 8.09% | 0.09% | 5.27% | 0.61% | |
70 Outperform | $47.10B | 17.01 | 27.78% | 2.11% | -0.39% | 47.31% | |
69 Neutral | $39.07B | 43.64 | 25.86% | 1.49% | -11.19% | -22.50% | |
58 Neutral | HK$14.11B | 4.63 | -3.01% | 6.76% | 3.67% | -54.16% |
* Industrials Sector Average
Performance Comparison
SDVKY
Sandvik AB
24.50
4.10
20.10%
CMI
Cummins
348.17
56.23
19.26%
GGG
Graco
87.70
6.08
7.45%
ITT
ITT
159.20
22.12
16.14%
ROK
Rockwell Automation
356.49
88.93
33.24%
IR
Ingersoll Rand
87.75
-10.07
-10.29%
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.