Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr184.01B
• Dividend Yield: 1.93%
• Average Volume (3M): 508.42K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.03
• 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: kr467.17
• Price Target Upside: 5.22% 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 ▲(9.91% 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 shows strong profitability with stable margins and effective leverage management. Despite a slight revenue decline, the company maintains a solid financial position. However, attention to free cash flow growth is necessary to ensure continued financial health.

Income Statement

Alfa Laval AB demonstrates strong profitability with a consistent gross profit margin around 35% and a net profit margin improving to 11.8% in the TTM period. Despite a slight revenue decline of 1.04% in the TTM, the company has shown resilience with an increasing EBIT margin reaching 16.5%. The company has maintained a stable EBITDA margin close to 20%, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.42 in the TTM, indicating prudent leverage. Return on equity has improved to 19.6%, showcasing effective utilization of shareholder funds. The equity ratio remains robust, ensuring financial stability despite fluctuations in total debt levels.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 3.6% in the TTM, which could be a concern. However, the operating cash flow to net income ratio remains healthy at 0.33, and the free cash flow to net income ratio is strong at 0.72, indicating good cash conversion efficiency. The company needs to focus on improving free cash flow growth to enhance liquidity.

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: 444.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 444 is below the 20-day moving average (MA) of 444.30, below the 50-day MA of 446.00, and above the 200-day MA of 426.91, indicating a neutral trend. The MACD of -2.81 indicates Positive momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 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
SAND	76 Outperform	kr352.23B	23.82	16.39%	2.02%	-1.77%	21.13%
TREL.B	73 Outperform	kr85.38B	24.06	9.56%	1.94%	2.73%	7.56%
BEIJ.B	72 Outperform	€75.33B	30.72	11.04%	0.93%	9.08%	-3.36%
ALFA	71 Outperform	kr184.01B	22.06	20.42%	1.93%	3.54%	20.94%
ATCO.B	71 Outperform	kr738.57B	24.69	26.43%	2.09%	-2.38%	-4.00%
ATCO.A	67 Neutral	kr738.57B	27.76	26.43%	1.92%	-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 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.