Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr209.56B
• Dividend Yield: 1.84%
• Average Volume (3M): 508.42K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.12
• 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: kr510.20
• Price Target Upside: -1.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr568.00 ▲(9.78% 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

Strong profitability margins

Sustained double-digit operating and net margins reflect durable operational efficiency and pricing power across engineered products and services. Strong margins support reinvestment, dividend capacity and resilience through cycles, underpinning long-term return generation.

Solid balance sheet and ROE

Moderate leverage and a high ROE indicate effective capital allocation and a resilient financial structure. This balance enables funding of capex and M&A without excessive refinancing risk, supporting steady strategic investments over multiple business cycles.

Diversified dual-revenue model

A mix of upfront equipment sales and recurring service, spare parts and maintenance contracts provides stable aftermarket revenue and higher lifetime customer value. This recurring component smooths cyclicality and supports margin stability and predictable cash flows long-term.

Negative Factors

Declining free cash flow growth

A near 18% decline in FCF growth and sub-1x FCF-to-income metrics suggest weaker cash conversion. Persistently impaired cash generation can constrain capital allocation, slow organic investments, and increase reliance on external funding for strategic initiatives.

Modest revenue growth

Low single-digit top-line growth limits operating leverage and may pressure future margin expansion. Over a multi-quarter horizon, muted organic growth can restrict scale benefits and make earnings more dependent on cost efficiencies or cyclic recovery.

Exposure to cyclical industrial end markets

Significant exposure to energy, marine and industrial markets ties revenue to capital spending cycles and commodity volatility. Structural cyclicality increases earnings volatility and can force conservative investment pacing during downturns, affecting long-term growth execution.

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: 517.40
• 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 517.4 is above the 20-day moving average (MA) of 498.47, above the 50-day MA of 470.53, and above the 200-day MA of 434.83, indicating a bullish trend. The MACD of 12.68 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 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	77 Outperform	kr850.76B	29.40	26.43%	2.03%	-2.38%	-4.00%
ATCO.A	76 Outperform	kr850.76B	33.53	26.43%	1.82%	-2.38%	-4.00%
TREL.B	73 Outperform	kr86.61B	24.36	9.56%	1.95%	2.73%	7.56%
ALFA	71 Outperform	kr209.56B	25.12	20.42%	1.84%	3.54%	20.94%
SAND	70 Outperform	kr434.52B	29.58	16.39%	1.94%	-1.77%	21.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEIJ.B	57 Neutral	kr68.40B	27.90	11.04%	0.95%	9.08%	-3.36%