Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr185.50B
• Dividend Yield: 1.86%
• Average Volume (3M): 508.42K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.10
• Revenue Growth: 3.54%
• EPS Growth: 20.94%
• Country: SE
• Employees: 22,496
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 5.53
• Shares Outstanding: 413,326,320
• 10 Day Avg. Volume: 527,537
• 30 Day Avg. Volume: 508,423
• PEG Ratio: 1.54
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 21.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr473.67
• Price Target Upside: 3.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr488.00 ▲(6.85% Upside)

Alfa Laval AB's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability margins. The technical analysis indicates a neutral to slightly bearish trend, which tempers the score. Valuation metrics suggest the stock is fairly valued, providing a balanced investment opportunity. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Alfa Laval's ability to expand its market presence and adapt to industry demands, ensuring long-term business sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and a competitive edge, allowing Alfa Laval to reinvest in growth and innovation.

Balance Sheet Health

A stable balance sheet with moderate leverage enhances Alfa Laval's financial flexibility, supporting its growth and resilience against economic fluctuations.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth could limit Alfa Laval's ability to fund new projects and investments, potentially impacting future expansion and operational efficiency.

Mixed Cash Flow Performance

Mixed cash flow performance suggests potential liquidity constraints, which may affect Alfa Laval's capacity to manage operational costs and strategic initiatives effectively.

Free Cash Flow to Net Income

A lower free cash flow to net income ratio indicates that Alfa Laval may face challenges in converting earnings into cash, which could hinder reinvestment opportunities.

Alfa Laval AB Business Overview & Revenue Model

Company Description

Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in three divisions: Energy, Food & Water, and Marine. It offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. The company also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, the company provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, the company provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. It also offers decanters and separator related products. The company serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.

How the Company Makes Money

Alfa Laval generates revenue through the sale of its core products, which include heat exchangers, separators, pumps, and related equipment. The company operates on a dual revenue model, earning income from both the initial sale of equipment and ongoing service contracts. Key revenue streams include new equipment sales, spare parts, and repair services, as well as maintenance agreements. Additionally, strategic partnerships with other industry leaders enhance its market reach and capabilities, contributing to its financial performance. Alfa Laval also focuses on sustainable technology solutions, which aligns with global environmental trends, potentially boosting its revenue from sectors like renewable energy and water treatment.

Alfa Laval AB Financial Statement Overview

Summary

Alfa Laval AB demonstrates strong financial performance with consistent revenue growth and healthy profitability margins. The balance sheet is stable with moderate leverage and strong return on equity. However, cash flow performance is mixed, with a decline in free cash flow growth, indicating potential challenges in cash generation.

Income Statement

Alfa Laval AB demonstrates strong financial performance with consistent revenue growth, highlighted by a 1.53% increase in TTM. The company maintains healthy profitability margins, with a gross profit margin of 36.16% and a net profit margin of 11.84% in TTM. EBIT and EBITDA margins are also robust at 16.46% and 19.85%, respectively. These metrics indicate efficient operations and a competitive position in the industrial machinery sector.

Balance Sheet

The balance sheet of Alfa Laval AB shows a stable financial structure with a debt-to-equity ratio of 0.42, reflecting moderate leverage. The return on equity is strong at 19.57%, indicating effective use of shareholder funds. The equity ratio stands at 42.30%, suggesting a solid equity base relative to total assets. Overall, the company maintains a balanced approach to financing, supporting its growth and stability.

Cash Flow

Alfa Laval AB's cash flow performance is mixed, with a decline in free cash flow growth by 17.97% in TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio is 0.33, and the free cash flow to net income ratio is 0.72, demonstrating adequate cash flow relative to earnings. The company needs to focus on improving cash flow generation to support future investments and operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.84B	66.95B	63.60B	52.13B	40.91B	41.47B
Gross Profit	25.03B	23.21B	20.88B	17.65B	14.51B	14.26B
EBITDA	13.84B	12.91B	11.68B	8.89B	8.35B	7.21B
Net Income	8.34B	7.39B	6.33B	4.50B	4.76B	3.55B
Balance Sheet
Total Assets	100.01B	88.80B	82.29B	81.25B	64.36B	60.86B
Cash, Cash Equivalents and Short-Term Investments	6.62B	7.81B	5.86B	4.66B	3.64B	7.76B
Total Debt	22.14B	13.59B	16.21B	18.16B	10.80B	11.63B
Total Liabilities	57.38B	46.52B	44.91B	45.55B	32.02B	31.79B
Stockholders Equity	42.30B	41.91B	37.03B	35.38B	32.10B	28.91B
Cash Flow
Free Cash Flow	6.65B	8.82B	6.73B	1.44B	4.04B	6.49B
Operating Cash Flow	9.61B	12.16B	9.17B	3.29B	5.26B	7.72B
Investing Cash Flow	-12.24B	-3.28B	-2.69B	-5.52B	-5.03B	-1.06B
Financing Cash Flow	3.73B	-6.74B	-5.54B	3.09B	-2.08B	-6.92B

Alfa Laval AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 456.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ALFA, the sentiment is Positive. The current price of 456.7 is above the 20-day moving average (MA) of 450.23, above the 50-day MA of 451.56, and above the 200-day MA of 426.80, indicating a bullish trend. The MACD of 4.07 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ALFA.

Alfa Laval AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TREL.B	73 Outperform	kr83.83B	23.63	9.56%	1.94%	2.73%	7.56%
BEIJ.B	72 Outperform	€73.78B	30.09	11.04%	0.96%	9.08%	-3.36%
ALFA	71 Outperform	kr185.50B	22.24	20.42%	1.86%	3.54%	20.94%
ATCO.B	71 Outperform	kr754.15B	25.41	26.43%	2.08%	-2.38%	-4.00%
SAND	70 Outperform	kr356.62B	24.12	16.39%	1.95%	-1.77%	21.13%
ATCO.A	67 Neutral	kr754.15B	28.26	26.43%	1.87%	-2.38%	-4.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Alfa Laval AB Corporate Events

Alfa Laval Reports Mixed Q3 2025 Results Amid Strategic Growth Initiatives

Alfa Laval AB reported a mixed performance in Q3 2025, with a 13% decline in order intake but a 6% increase in net sales, driven by strong short-cyclical business momentum. The company completed the acquisition of Fives’ cryogenic business, which impacted the Energy Division’s margin but is expected to integrate well. Alfa Laval has updated its financial targets, aiming for a 7% sales growth and a 17% EBITA margin over a business cycle, while continuing its strategic investments to support future growth and sustainability initiatives.

Alfa Laval Updates Financial Targets to Enhance Growth and Profitability

Alfa Laval AB has updated its financial targets to reflect recent performance and strategic priorities, aiming for 7% annual sales growth and a 17% operating margin over a business cycle. These updates are expected to enhance the company’s market positioning and stakeholder value, with further details to be shared at the upcoming Capital Markets Day.