Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr172.03B
• Dividend Yield: 2.04%
• Average Volume (3M): 471.42K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.03
• Revenue Growth: 6.40%
• EPS Growth: 18.28%
• Country: SE
• Employees: 22,496
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 4.82
• Shares Outstanding: 413,326,320
• 10 Day Avg. Volume: 463,989
• 30 Day Avg. Volume: 471,415
• PEG Ratio: 5.37
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.65
• 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: kr453.13
• Price Target Upside: 7.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: kr460.00 ▲(9.52%Upside)

Alfa Laval AB receives a strong score, primarily driven by its robust financial performance, including profitability and balance sheet health. The valuation is moderately positive, though the high dividend yield requires further analysis. Technical analysis suggests caution with mixed signals in short-term momentum.

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 financial performance with robust profitability, a healthy balance sheet, and effective cash flow management. The company's low leverage and high return on equity further underscore its financial strength. Although there's a slight decrease in free cash flow, it is not significant enough to undermine overall stability.

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

Alfa Laval AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 420 is above the 20-day moving average (MA) of 407.95, above the 50-day MA of 408.44, and below the 200-day MA of 440.22, indicating a neutral trend. The MACD of 4.95 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 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	kr735.06B	23.72	28.28%	2.11%	0.54%	1.79%
SKF.B	77 Outperform	kr105.56B	19.66	9.91%	3.42%	-3.96%	2.77%
SAND	76 Outperform	kr294.28B	20.71	16.41%	2.45%	-1.82%	12.60%
ATCO.A	76 Outperform	kr735.06B	27.12	28.28%	1.91%	0.54%	1.79%
TREL.B	75 Outperform	kr81.49B	23.18	9.31%	2.03%	2.42%	4.02%
ALFA	74 Outperform	kr172.03B	23.14	18.80%	2.04%	6.40%	18.28%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%