Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr165.62B
• Dividend Yield: 20.98%
• Average Volume (3M): 505.35K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.04
• Revenue Growth: 6.40%
• EPS Growth: 18.28%
• Country: SE
• Employees: 22,496
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 4.82
• Shares Outstanding: 413,326,320
• 10 Day Avg. Volume: 507,855
• 30 Day Avg. Volume: 505,354
• PEG Ratio: -6.42
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 86.61
• 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: kr439.80
• Price Target Upside: 9.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: kr469.00 ▲(17.05%Upside)

Alfa Laval AB's overall stock score is driven by its strong financial performance, which is the most significant contributor to its attractiveness. While the technical analysis indicates some bullish medium-term momentum, the valuation score suggests the stock is potentially overvalued, which limits upside potential. The absence of earnings call and corporate events data means these aspects did not influence the score.

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 makes money primarily through the sale of its products and services that cater to the energy, marine, and food and water sectors. The company's revenue streams include the sale of equipment and components like heat exchangers, separators, and pumps, which are essential in various industrial processes. Additionally, Alfa Laval generates revenue from service contracts, maintenance, and spare parts, providing ongoing support and optimization for its equipment. The company also engages in significant partnerships and collaborations that enhance its market reach and technological capabilities, contributing to its earnings. Furthermore, Alfa Laval's innovation and focus on energy efficiency and sustainable solutions bolster its competitiveness and demand in the global market.

Alfa Laval AB Financial Statement Overview

Summary

Alfa Laval AB shows commendable financial performance with strong profitability, a healthy balance sheet, and effective cash flow management. The company’s growth trajectory is positive, supported by efficient operations and prudent financial practices. While the balance sheet reflects low leverage, providing stability, the slight decrease in free cash flow warrants monitoring but 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	68.51B	66.95B	63.60B	52.13B	40.91B	41.47B
Gross Profit	24.05B	23.21B	20.88B	17.65B	14.51B	14.26B
EBITDA	13.39B	12.91B	12.24B	8.84B	8.27B	7.21B
Net Income	7.70B	7.39B	6.33B	4.50B	4.76B	3.55B
Balance Sheet
Total Assets	87.26B	88.80B	82.29B	81.25B	64.36B	60.86B
Cash, Cash Equivalents and Short-Term Investments	7.57B	7.81B	5.86B	4.66B	3.64B	7.76B
Total Debt	11.66B	13.59B	16.21B	18.16B	10.80B	11.63B
Total Liabilities	44.51B	46.52B	44.91B	45.55B	32.02B	31.79B
Stockholders Equity	42.40B	41.91B	37.03B	35.38B	32.10B	28.91B
Cash Flow
Free Cash Flow	8.40B	8.82B	6.73B	1.44B	4.04B	6.49B
Operating Cash Flow	11.59B	12.16B	9.17B	3.29B	5.26B	7.72B
Investing Cash Flow	-3.16B	-3.28B	-2.69B	-5.52B	-5.03B	-1.06B
Financing Cash Flow	-7.09B	-6.74B	-5.54B	3.09B	-2.08B	-6.92B

Alfa Laval AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 400.70
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 400.7 is below the 20-day moving average (MA) of 403.97, below the 50-day MA of 401.98, and below the 200-day MA of 443.60, indicating a bearish trend. The MACD of -3.63 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ALFA.

Alfa Laval AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	79 Outperform	kr165.62B	21.51	18.80%	20.98%	6.40%	18.28%
ATCO.B	78 Outperform	kr722.72B	22.55	27.15%	22.22%	0.54%	1.79%
SKF.B	77 Outperform	kr96.24B	15.08	11.14%	3.61%	-3.96%	2.77%
SAND	76 Outperform	kr275.21B	18.68	15.81%	25.87%	-1.09%	15.72%
ATCO.A	76 Outperform	kr722.72B	25.82	27.15%	2.02%	0.54%	1.79%
TREL.B	75 Outperform	kr83.64B	22.97	9.02%	20.74%	2.94%	-59.33%
Sector *	63 Neutral	kr63.91B	12.69	1.54%	13.28%	0.04%	-3.90%