Alfa Laval AB (ALFA) AI Stock Analysis

• Market Cap: kr177.94B
• Dividend Yield: 1.97%
• Average Volume (3M): 467.83K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.01
• Revenue Growth: 2.66%
• EPS Growth: 19.90%
• Country: SE
• Employees: 22,496
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Machinery
• EPS (TTM): 4.87
• Shares Outstanding: 413,326,320
• 10 Day Avg. Volume: 508,699
• 30 Day Avg. Volume: 467,832
• 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: kr451.56
• Price Target Upside: 6.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: kr461.00 ▲(8.62% Upside)

Alfa Laval AB shows strong financial performance with solid profitability and effective leverage management. Technical analysis presents mixed signals, with a slight bearish trend. The valuation is reasonable, supported by a moderate dividend yield. The primary concern is the decline in free cash flow growth, which needs attention to maintain financial health.

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 multiple streams, primarily by selling its core products and solutions, including heat exchangers, separators, pumps, and valves. These products are utilized in various applications across different industries, creating a diverse customer base. In addition to product sales, Alfa Laval also earns income from service and maintenance contracts, which provide ongoing support and upgrades for installed systems. The company has established significant partnerships with major players in its target sectors, enhancing its market reach and enabling it to provide integrated solutions. Furthermore, Alfa Laval's commitment to sustainability and energy efficiency allows it to tap into growing markets focused on environmental solutions, contributing to its earnings.

Alfa Laval AB Financial Statement Overview

Summary

Alfa Laval AB demonstrates strong profitability with robust margins and effective cash flow management. The company maintains a solid balance sheet with low leverage, providing stability. While there is a slight decrease in free cash flow, it 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	67.80B	66.95B	63.60B	52.13B	40.91B	41.47B
Gross Profit	24.52B	23.21B	20.88B	17.65B	14.51B	14.26B
EBITDA	13.46B	12.91B	12.24B	8.84B	8.27B	7.21B
Net Income	8.03B	7.39B	6.33B	4.50B	4.76B	3.55B
Balance Sheet
Total Assets	90.96B	88.80B	82.29B	81.25B	64.36B	60.86B
Cash, Cash Equivalents and Short-Term Investments	9.34B	7.81B	5.86B	4.66B	3.64B	7.76B
Total Debt	16.81B	13.59B	16.21B	18.16B	10.80B	11.63B
Total Liabilities	50.29B	46.52B	44.91B	45.55B	32.02B	31.79B
Stockholders Equity	40.35B	41.91B	37.03B	35.38B	32.10B	28.91B
Cash Flow
Free Cash Flow	8.10B	8.82B	6.73B	1.44B	4.04B	6.49B
Operating Cash Flow	11.22B	12.16B	9.17B	3.29B	5.26B	7.72B
Investing Cash Flow	-3.65B	-3.28B	-2.69B	-5.52B	-5.03B	-1.06B
Financing Cash Flow	-1.81B	-6.74B	-5.54B	3.09B	-2.08B	-6.92B

Alfa Laval AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 424.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ALFA, the sentiment is Neutral. The current price of 424.4 is below the 20-day moving average (MA) of 428.43, above the 50-day MA of 420.67, and below the 200-day MA of 433.24, indicating a neutral trend. The MACD of 3.29 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	kr177.94B	22.17	20.37%	1.97%	2.66%	19.90%
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
0XXV	―	kr709.23B	23.41	28.28%	―	―	―
0XXT	―	kr709.23B	26.31	28.28%	―	―	―
0HC0	―	kr299.80B	20.51	16.41%	―	―	―
0NL3	―	kr81.40B	23.33	9.31%	―	―	―
BRZ0	―	€7.42B	34.37	10.73%	―	―	―

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.