Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr173.72B
• Dividend Yield: 2.02%
• Average Volume (3M): 528.40K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.01
• Revenue Growth: 2.66%
• EPS Growth: 19.90%
• Country: SE
• Employees: 22,496
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 4.87
• Shares Outstanding: 413,326,320
• 10 Day Avg. Volume: 447,701
• 30 Day Avg. Volume: 528,402
• 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: kr448.50
• Price Target Upside: 6.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: kr471.00 ▲(12.22% Upside)

Alfa Laval AB's strong financial performance, characterized by solid profitability and a stable balance sheet, is the primary driver of its stock score. Technical analysis indicates moderate bullish momentum, while valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events did not impact the score.

Alfa Laval AB Business Overview & Revenue Model

Company Description

Alfa Laval AB is a Swedish company that specializes in providing products and solutions for heat transfer, separation, and fluid handling. The company operates predominantly in three main sectors: Energy, Food & Water, and Marine. Alfa Laval's core products include heat exchangers, separators, pumps, and valves, which are essential for various industrial processes across these sectors.

How the Company Makes Money

Alfa Laval makes money through the sale of its specialized equipment and solutions that cater to industries such as energy production, food and beverage processing, water supply, and marine transport. The company's revenue streams are primarily derived from product sales, maintenance services, and after-sales support. Alfa Laval's strategic partnerships with major industrial players and its focus on innovation and sustainable solutions contribute significantly to its earnings. Additionally, recurring revenue from service agreements and spare parts ensures a steady income flow.

Alfa Laval AB Financial Statement Overview

Summary

Alfa Laval AB demonstrates strong profitability with robust margins and effective cash flow management. The company maintains a solid balance sheet with low leverage, providing stability. While there is a slight decrease in free cash flow, it does not overshadow the company’s overall financial strength.

Income Statement

Alfa Laval AB demonstrates strong profitability with a gross profit margin of 35.1% and a net profit margin of 11.2% for TTM (Trailing-Twelve-Months). The company's revenue growth rate is healthy at 2.3% from the previous year-end, indicating steady expansion. EBIT and EBITDA margins are robust at 16.6% and 19.6%, respectively, showcasing operational efficiency and strong earnings capability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.28, reflecting conservative leverage. The return on equity (ROE) stands at 18.2%, indicating effective utilization of equity capital. The equity ratio is 48.6%, suggesting a balanced capital structure with a substantial portion of financing from equity.

Cash Flow

Alfa Laval AB exhibits strong cash flow management with a free cash flow to net income ratio of 1.09, indicating efficient conversion of earnings into cash. The operating cash flow to net income ratio is 1.51, suggesting robust cash generation relative to net income. Although the free cash flow growth rate is slightly negative at -4.7%, overall cash flow stability is maintained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.80B	66.95B	63.60B	52.13B	40.91B	41.47B
Gross Profit	24.52B	23.21B	20.88B	17.65B	14.51B	14.26B
EBITDA	13.46B	12.91B	12.24B	8.84B	8.27B	7.21B
Net Income	8.03B	7.39B	6.33B	4.50B	4.76B	3.55B
Balance Sheet
Total Assets	90.96B	88.80B	82.29B	81.25B	64.36B	60.86B
Cash, Cash Equivalents and Short-Term Investments	9.34B	7.81B	5.86B	4.66B	3.64B	7.76B
Total Debt	16.81B	13.59B	16.21B	18.16B	10.80B	11.63B
Total Liabilities	50.29B	46.52B	44.91B	45.55B	32.02B	31.79B
Stockholders Equity	40.35B	41.91B	37.03B	35.38B	32.10B	28.91B
Cash Flow
Free Cash Flow	8.10B	8.82B	6.73B	1.44B	4.04B	6.49B
Operating Cash Flow	11.22B	12.16B	9.17B	3.29B	5.26B	7.72B
Investing Cash Flow	-3.65B	-3.28B	-2.69B	-5.52B	-5.03B	-1.06B
Financing Cash Flow	-1.81B	-6.74B	-5.54B	3.09B	-2.08B	-6.92B

Alfa Laval AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 419.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 419.7 is below the 20-day moving average (MA) of 421.62, above the 50-day MA of 411.69, and below the 200-day MA of 436.84, indicating a neutral trend. The MACD of 3.21 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 31.40 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
ATCO.B	78 Outperform	kr685.10B	22.53	28.28%	2.24%	-2.31%	-4.41%
SAND	76 Outperform	kr295.16B	20.38	16.41%	2.44%	-1.82%	12.60%
SKF.B	76 Outperform	kr104.09B	19.38	9.91%	3.48%	-4.94%	-5.76%
ALFA	74 Outperform	kr173.72B	21.64	20.37%	2.02%	2.66%	19.90%
ATCO.A	62 Neutral	kr685.10B	25.30	28.28%	1.99%	-2.31%	-4.41%
TREL.B	62 Neutral	kr77.24B	22.34	9.31%	2.15%	2.42%	4.02%
Sector *	58 Neutral	HK$13.20B	4.34	-2.94%	5.79%	3.03%	-49.30%

Alfa Laval AB Corporate Events

Alfa Laval Reports Q2 2025 Results and Strategic Acquisition

Alfa Laval’s Q2 2025 report shows a decline in order intake by 14%, with net sales decreasing by 4%. Despite these declines, the company achieved a 2% increase in adjusted EBITA and a 19% rise in net income. The acquisition of the cryogenic business from Fives is expected to enhance Alfa Laval’s Energy Division, adding significant value to its order book and potentially increasing divisional margins. The company anticipates stable demand in the third quarter, with the cryogenic business contributing to higher demand, while trade disputes have limited impact on order intake and margins.

The most recent analyst rating on (SE:ALFA) stock is a Hold with a SEK398.00 price target. To see the full list of analyst forecasts on Alfa Laval AB stock, see the SE:ALFA Stock Forecast page.