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Sandvik AB
(OTC:SDVKY)
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Rating:73Outperform
Price Target:
$43.00
â–²(19.51% Upside)
Action:Reiterated
Date:04/23/26
The score is driven primarily by solid financial performance (strong margins and resilient free cash flow) and a positive earnings update (record orders, double-digit organic growth, and deleveraging). Technicals add support with an uptrend above major moving averages. Offsetting these positives, valuation is less attractive given the higher P/E and modest yield, while FX and segment-specific profitability pressures remain notable near-term risks.
Positive Factors
Strong free cash flow generation
Consistently strong free cash flow (SEK 3.6bn in Q1 and ~88% 12‑month cash conversion) underpins durable financial flexibility. High FCF supports deleveraging, reinvestment in capex and inorganic growth, and cushions cyclicality, improving resilience across business cycles over months.
Negative Factors
Significant currency headwinds
Material FX impacts have meaningfully reduced reported margins and will likely persist near term. Continued currency pressure can erode pricing power, compress adjusted EBITDA and reduce reported cash flow, complicating margin improvement and deleveraging plans across upcoming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistently strong free cash flow (SEK 3.6bn in Q1 and ~88% 12‑month cash conversion) underpins durable financial flexibility. High FCF supports deleveraging, reinvestment in capex and inorganic growth, and cushions cyclicality, improving resilience across business cycles over months.
Read all positive factors
Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.65B
Dividend Yield1.86%
Average Volume (3M)15.80K
Price to Earnings (P/E)33.1
Beta (1Y)1.23
Revenue Growth11.88%
EPS Growth13.87%
CountryUS
Employees41,801
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)11.78
Shares Outstanding1,254,386,000
10 Day Avg. Volume4,899
30 Day Avg. Volume15,805
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)4.03
Price to Sales (P/S)3.31
P/FCF Ratio24.82
Enterprise Value/Market Cap10.50
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda19.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.73
Revenue Forecast (FY)$14.95B
Sandvik AB Business Overview & Revenue Model
Company Description
Sandvik AB (publ), a global engineering powerhouse headquartered in Stockholm, Sweden, has been a key player since its establishment in 1862. The company's diverse operations are primarily focused on four critical areas: solutions for mining and r...
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial performance: record order intake, double‑digit organic growth across business areas, improved group margin within the corridor, strong cash generation and strategic product and acquisition progress. Major negatives were substantial currency headwinds that materially diluted margins and a weak quarter for Rock Processing driven by delivery timing and mix effects, plus continued volatility in tungsten/powder markets and some inventory buildup. Overall, the positives (strong demand, record orders, revenue acceleration, margin and cash flow strength, and strategic advances) outweigh the negatives, though currency and raw‑material volatility remain meaningful near‑term risks.Positive Updates
Record Order Intake and Strong Organic Growth
Total order intake reached an all-time high of SEK 36.8 billion (book-to-bill 120%). Total order intake grew 12% year-on-year and organic order intake grew 23%. This marked the fourth consecutive quarter of double-digit organic order growth and the eighth consecutive quarter of order growth.
Negative Updates
Significant Currency Headwinds
Currency was a major headwind in the quarter: group currency diluted EBITDA by ~240 basis points. Mining experienced SEK 810 million negative currency impact (≈ -310 bps margin dilution). Rock Processing and Machining faced ~220 bps and ~130 bps currency drags respectively. Total reported currency impact was roughly SEK 1.4 billion negative for the quarter and a further ~SEK 0.5 billion headwind is expected in Q2 (rates as of April 20).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Order Intake and Strong Organic Growth
Total order intake reached an all-time high of SEK 36.8 billion (book-to-bill 120%). Total order intake grew 12% year-on-year and organic order intake grew 23%. This marked the fourth consecutive quarter of double-digit organic order growth and the eighth consecutive quarter of order growth.
Read all positive updates
Company Guidance
Management kept full‑year guidance unchanged for CapEx, interest net and the tax rate while noting currency came in roughly as guided (≈SEK 1.4bn negative in Q1) and they now expect an additional SEK 0.5bn FX headwind in Q2 (rates as of 20 Apr); Q1 CapEx was SEK 0.8bn and reported interest net about -SEK 150m, normalized tax ~24% (reported ex‑items 25.2%). They reiterated the margin corridor with group adjusted EBITDA SEK ~6.2bn and margin 20%, and flagged continued focus on cash and deleveraging after Q1 free operating cash flow SEK 3.6bn (cash conversion 62% in Q1; 12‑month rolling 88%), net financial debt SEK 24bn (including leases & pensions net debt SEK 31bn, leverage 0.8x). Order intake was an all‑time high SEK 36.8bn (revenues SEK 30.7bn, book‑to‑bill 120%, organic order intake +23%, organic revenues +15%), and they expect normal backlog conversion and margin recovery in Rock Processing as deliveries catch up.Sandvik AB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.64B | 113.44B | 122.88B | 126.50B | 112.33B | 99.11B |
| Gross Profit | 48.73B | 46.06B | 49.14B | 52.05B | 45.37B | 40.17B |
| EBITDA | 27.57B | 27.13B | 26.99B | 30.68B | 25.80B | 23.65B |
| Net Income | 13.95B | 13.81B | 12.24B | 15.30B | 11.21B | 14.46B |
Balance Sheet | ||||||
| Total Assets | 182.23B | 169.86B | 184.38B | 174.21B | 176.68B | 155.52B |
| Cash, Cash Equivalents and Short-Term Investments | 8.23B | 4.96B | 4.53B | 4.36B | 10.49B | 13.59B |
| Total Debt | 41.47B | 37.12B | 42.76B | 45.08B | 52.06B | 34.35B |
| Total Liabilities | 81.89B | 76.62B | 87.39B | 86.51B | 95.41B | 78.19B |
| Stockholders Equity | 100.28B | 93.17B | 96.92B | 87.63B | 81.23B | 77.20B |
Cash Flow | ||||||
| Free Cash Flow | 18.56B | 15.12B | 15.77B | 13.44B | 5.93B | 9.60B |
| Operating Cash Flow | 22.17B | 18.72B | 20.61B | 18.80B | 10.46B | 13.18B |
| Investing Cash Flow | -5.49B | -6.66B | -7.67B | -8.51B | -20.30B | -26.19B |
| Financing Cash Flow | -13.42B | -11.19B | -12.99B | -16.21B | 6.22B | 2.49B |
Sandvik AB Technical Analysis
Positive
35.98
Price Trends
40.39
Positive
40.34
Positive
36.34
Positive
Market Momentum
-0.05
Positive
50.38
Neutral
47.09
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 35.98 is below the 20-day moving average (MA) of 40.82, below the 50-day MA of 40.39, and below the 200-day MA of 36.34, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $119.94B | 35.09 | 24.69% | 0.79% | 6.03% | 4.26% | |
77 Outperform | $51.24B | 48.63 | 30.25% | 1.33% | 10.45% | 21.30% | |
73 Outperform | $50.65B | 33.06 | 15.95% | 1.86% | 11.88% | 13.87% | |
71 Outperform | $156.43B | 40.50 | 20.81% | 1.29% | 12.68% | 3.12% | |
71 Outperform | $75.83B | 31.29 | 12.11% | 1.58% | 4.03% | 3.51% | |
70 Outperform | $78.11B | 25.23 | 97.38% | 2.43% | 2.90% | -5.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SDVKY
Sandvik AB
40.59
17.21
73.60%
ETN
Eaton
415.52
57.54
16.08%
EMR
Emerson Electric Company
136.09
-1.36
-0.99%
ITW
Illinois Tool Works
272.28
22.23
8.89%
PH
Parker Hannifin
964.55
262.02
37.30%
ROK
Rockwell Automation
469.77
128.02
37.46%
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.