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Alfa Laval AB (SE:ALFA)
:ALFA

Alfa Laval AB (ALFA) AI Stock Analysis

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Alfa Laval AB

(LSE:ALFA)

Rating:81Outperform
Price Target:
kr478.00
▲(15.38%Upside)
Alfa Laval AB's strong financial performance is the primary driver of its stock score, supported by its solid profitability and balance sheet. Technical indicators suggest moderate bullish momentum, but the valuation appears somewhat high, which slightly detracts from the overall attractiveness.

Alfa Laval AB (ALFA) vs. iShares MSCI Sweden ETF (EWD)

Alfa Laval AB Business Overview & Revenue Model

Company DescriptionAlfa 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 MoneyAlfa 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 a 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
90
Very Positive
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
85
Very Positive
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
88
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
68.51B66.95B63.60B52.13B40.91B41.47B
Gross Profit
24.05B23.21B20.88B17.65B14.51B14.26B
EBIT
11.38B10.44B9.26B6.52B6.13B5.58B
EBITDA
13.39B12.91B12.24B8.84B8.27B7.21B
Net Income Common Stockholders
7.70B7.39B6.33B4.50B4.76B3.55B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.57B7.81B5.86B4.66B3.64B7.76B
Total Assets
87.26B88.80B82.29B81.25B64.36B60.86B
Total Debt
11.66B13.59B16.21B18.16B10.80B11.63B
Net Debt
4.09B6.22B11.07B13.80B7.45B6.49B
Total Liabilities
44.51B46.52B44.91B45.55B32.02B31.79B
Stockholders Equity
42.40B41.91B37.03B35.38B32.10B28.91B
Cash FlowFree Cash Flow
8.40B8.82B6.73B1.44B4.04B6.49B
Operating Cash Flow
11.59B12.16B9.17B3.29B5.26B7.72B
Investing Cash Flow
-3.16B-3.28B-2.69B-5.52B-5.03B-1.06B
Financing Cash Flow
-7.09B-6.74B-5.54B3.09B-2.08B-6.92B

Alfa Laval AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price414.30
Price Trends
50DMA
404.41
Positive
100DMA
431.71
Negative
200DMA
446.21
Negative
Market Momentum
MACD
1.46
Positive
RSI
55.12
Neutral
STOCH
65.59
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 414.3 is above the 20-day moving average (MA) of 411.19, above the 50-day MA of 404.41, and below the 200-day MA of 446.21, indicating a neutral trend. The MACD of 1.46 indicates Positive momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
kr171.24B22.2418.80%2.04%6.40%18.28%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
kr737.87B23.0527.15%2.10%
kr737.87B26.1727.15%1.85%
kr268.19B18.2215.81%2.69%
kr97.49B15.2311.14%3.63%
kr81.58B22.449.02%2.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ALFA
Alfa Laval AB
414.30
-55.52
-11.82%
GB:0XXV
Atlas Copco AB
138.15
-33.65
-19.59%
GB:0XXT
Atlas Copco AB
156.87
-43.24
-21.61%
GB:0HC0
Sandvik AB
213.95
-2.10
-0.97%
GB:0NWX
SKF AB
213.48
-2.10
-0.97%
GB:0NL3
Trelleborg AB
353.34
-55.35
-13.54%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.