Sandvik AB (SDVKY)
OTHER OTC:SDVKY
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Sandvik AB
(OTC:SDVKY)
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Rating:68Neutral
Price Target:
$39.00
â–²(8.39% Upside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by solid fundamentals—strong profitability and reliable free cash flow—with supportive but riskier technicals due to extreme overbought readings. A high P/E and near-term FX/tungsten uncertainty from the earnings call temper the overall outlook.
Positive Factors
Strong free cash flow and conversion
Consistently high free cash flow and strong conversion provide durable financial flexibility: supports reinvestment, M&A, dividends and debt reduction even if equipment sales are cyclical, improving resilience versus demand swings and enabling long-term strategic execution.
Negative Factors
Significant and persistent currency headwinds
Large FX swings materially depress reported revenue and margins, reduce visibility and can force short-term repricing or margin concessions. Prolonged currency pressure hampers cash flow comparability, complicates planning and could delay reinvestment or M&A benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and conversion
Consistently high free cash flow and strong conversion provide durable financial flexibility: supports reinvestment, M&A, dividends and debt reduction even if equipment sales are cyclical, improving resilience versus demand swings and enabling long-term strategic execution.
Read all positive factors
Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.92B
Dividend Yield1.86%
Average Volume (3M)12.20K
Price to Earnings (P/E)27.2
Beta (1Y)1.15
Revenue Growth2.17%
EPS Growth25.95%
CountryUS
Employees41,400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.38
Shares Outstanding1,254,386,000
10 Day Avg. Volume25,254
30 Day Avg. Volume12,197
Financial Highlights & Ratios
PEG Ratio1.36
Price to Book (P/B)4.03
Price to Sales (P/S)3.31
P/FCF Ratio24.82
Enterprise Value/Market Cap9.93
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit10.76
Enterprise Value/Ebitda19.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.6
Revenue Forecast (FY)$14.55B
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, in...
How the Company Makes Money
Sandvik makes money by selling equipment, tools, and technology solutions, and by generating recurring revenue from consumables and aftermarket services that support its installed base.
1) Sale of equipment and systems (typically larger, more cyc...
Sandvik AB Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
Operational performance was strong: double-digit organic order and revenue growth, resilient margins, high cash conversion and meaningful strategic progress in digital and product innovation. These achievements were materially offset by significant and unexpected currency headwinds, commodity (tungsten) price volatility and some segment/regional softness (Rock Processing comps, automotive). On balance, underlying business momentum and cash/earnings strength outweigh the external FX and commodity challenges, but near-term visibility is affected by currency and tungsten uncertainty.Positive Updates
Strong Organic Order and Revenue Growth
Organic order intake +15% and organic revenue +12% in Q4; total order intake +4% and total revenue +1% after currency effects.
Negative Updates
Significant Currency Headwind
Currency hit almost SEK 1.2bn in the quarter (dilution ~130bps to margin); currency was -12% on orders and -11% on revenues, and Q1 2026 expected currency impact ~-SEK 1.4bn based on rates as of 23 Jan.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Organic Order and Revenue Growth
Organic order intake +15% and organic revenue +12% in Q4; total order intake +4% and total revenue +1% after currency effects.
Read all positive updates
Company Guidance
Guidance highlights: management expects the significant currency headwind to continue into Q1 2026, with an unexpected negative FX impact of about SEK 1.4 billion on top‑line and EBITDA (based on FX rates as of 23 Jan), after Q4 FX headwinds of ~SEK 1.2 billion (≈130 bps margin dilution); Q1 is also seasonally a low‑invoicing quarter. For the full year they guide CapEx SEK 4.0–4.5 billion, an interest net trending down to about SEK 0.6 billion, and an unchanged normalized tax rate of ~24.4%; net financial debt was SEK 27 billion at year‑end (net debt incl. leases & pensions ~SEK 34 billion, net debt/EBITDA ~0.9). Operationally they reiterated a Mining margin corridor of 20–22% with normal operating leverage ~30%, a long‑run machining drop‑through target near 40%, and continued focus on working capital and cash generation after Q4 free operating cash flow of SEK 6.7 billion (cash conversion 110%, FY cash conversion 95%).Sandvik AB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 113.44B | 122.88B | 126.50B | 112.33B | 99.11B |
| Gross Profit | 46.06B | 49.14B | 52.05B | 45.37B | 40.17B |
| EBITDA | 27.13B | 26.99B | 30.68B | 25.80B | 23.65B |
| Net Income | 13.81B | 12.24B | 15.30B | 11.21B | 14.46B |
Balance Sheet | |||||
| Total Assets | 169.86B | 184.38B | 174.21B | 176.68B | 155.52B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 4.53B | 4.36B | 10.49B | 13.59B |
| Total Debt | 37.12B | 42.76B | 45.08B | 52.06B | 34.35B |
| Total Liabilities | 76.62B | 87.39B | 86.51B | 95.41B | 78.19B |
| Stockholders Equity | 93.17B | 96.92B | 87.63B | 81.23B | 77.20B |
Cash Flow | |||||
| Free Cash Flow | 15.12B | 15.77B | 13.44B | 5.93B | 9.60B |
| Operating Cash Flow | 18.72B | 20.61B | 18.80B | 10.46B | 13.18B |
| Investing Cash Flow | -6.66B | -7.67B | -8.51B | -20.30B | -26.19B |
| Financing Cash Flow | -11.19B | -12.99B | -16.21B | 6.22B | 2.49B |
Sandvik AB Technical Analysis
Positive
35.98
Price Trends
40.18
Positive
36.22
Positive
31.32
Positive
Market Momentum
-0.03
Negative
63.55
Neutral
84.47
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 35.98 is below the 20-day moving average (MA) of 38.15, below the 50-day MA of 40.18, and above the 200-day MA of 31.32, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.93B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
76 Outperform | $149.60B | 30.24 | 21.67% | 1.29% | 8.24% | 6.21% | |
72 Outperform | $77.67B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
69 Neutral | $80.22B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $52.92B | 27.18 | 16.12% | 1.86% | 2.17% | 25.95% | |
68 Neutral | $43.82B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SDVKY
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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.