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Atlas Copco AB (SE:ATCO.A)
:ATCO.A

Atlas Copco AB (ATCO.A) AI Stock Analysis

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Atlas Copco AB

(LSE:ATCO.A)

Rating:72Outperform
Price Target:―
Atlas Copco AB demonstrates robust financial strength with consistent revenue growth, strong margins, and efficient cash flow management. However, technical analysis signals suggest caution due to bearish momentum and the stock trading below key moving averages. The valuation appears fair, with a reasonable P/E ratio and moderate dividend yield. While the financial performance is a strong positive, technical signals and valuation considerations moderate the overall score.

Atlas Copco AB (ATCO.A) vs. iShares MSCI Sweden ETF (EWD)

Atlas Copco AB Business Overview & Revenue Model

Company DescriptionAtlas Copco AB is a Swedish multinational industrial company that operates in various sectors including compressor technology, vacuum solutions, and industrial tools and assembly systems. The company is renowned for its innovative products and services designed to enhance productivity and sustainability across a wide array of industries such as manufacturing, construction, and mining. Atlas Copco's core offerings include air compressors, gas equipment, power tools, and related service solutions.
How the Company Makes MoneyAtlas Copco AB generates revenue through the sale and rental of its industrial products and the provision of related services. The company's revenue streams are primarily derived from four business areas: Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique. The Compressor Technique segment offers air compressors, blowers, and air treatment systems. The Vacuum Technique segment provides vacuum pumps and systems used in industries like semiconductors and electronics. The Industrial Technique segment focuses on advanced industrial tools and assembly solutions, while the Power Technique segment includes portable compressors, generators, and lighting towers. Additionally, Atlas Copco benefits from after-sales services, maintenance contracts, and spare parts sales, which contribute significantly to its earnings. Strategic partnerships and acquisitions also play a role in expanding its market reach and enhancing its product offerings.

Atlas Copco AB Financial Statement Overview

Summary
Atlas Copco AB is in a strong financial position, characterized by consistent revenue and profit growth, healthy margins, a solid equity base, and strong cash flows. The company's prudent financial management is evident in its decreasing leverage and robust cash generation, positioning it well for future growth and stability. Potential risks appear minimal with effective cost management and a strong equity foundation.
Income Statement
85
Very Positive
Atlas Copco AB demonstrates strong financial performance with a consistent increase in revenue and profitability over the years. The Gross Profit Margin is stable at around 42-43%, and the Net Profit Margin is healthy, improving to over 16.5% in the TTM period. Revenue growth has been robust, particularly from 2022 to 2023, showing a clear upward trajectory. EBIT and EBITDA margins are also strong, indicating efficient operations and cost management.
Balance Sheet
78
Positive
The balance sheet of Atlas Copco AB reflects a solid financial position with a substantial equity base. The Debt-to-Equity Ratio is moderate, having decreased over the years, which indicates a prudent approach to leveraging. The Return on Equity is robust, showcasing the company's ability to generate profits from shareholders' equity. The Equity Ratio has improved, highlighting a stronger equity base relative to total assets.
Cash Flow
82
Very Positive
Atlas Copco AB's cash flow is strong, with consistent growth in Free Cash Flow, which has increased by more than 45% from 2022 to the TTM period. The Operating Cash Flow to Net Income Ratio is consistently above 1, indicating good cash generation from operations relative to profits. The Free Cash Flow to Net Income Ratio is also favorable, showing efficient conversion of income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue176.63B176.77B172.66B141.32B110.91B99.79B
Gross Profit75.45B75.74B75.12B59.38B46.53B41.18B
EBITDA45.68B46.40B44.17B36.07B28.61B23.91B
Net Income29.21B29.78B28.04B23.48B18.13B14.78B
Balance Sheet
Total Assets199.05B208.54B182.68B172.30B136.68B113.37B
Cash, Cash Equivalents and Short-Term Investments21.97B19.33B11.22B11.85B19.58B11.65B
Total Debt33.04B34.71B32.71B36.30B24.85B24.63B
Total Liabilities88.36B94.78B91.18B92.28B69.05B59.83B
Stockholders Equity110.63B113.70B91.45B79.98B67.63B53.22B
Cash Flow
Free Cash Flow31.39B30.86B22.63B16.35B19.79B19.41B
Operating Cash Flow38.24B36.89B28.08B21.38B23.15B22.20B
Investing Cash Flow-14.38B-13.32B-9.39B-15.50B-6.12B-16.29B
Financing Cash Flow-17.55B-15.86B-18.28B-14.65B-10.32B-8.55B

Atlas Copco AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price148.60
Price Trends
50DMA
154.23
Negative
100DMA
163.87
Negative
200DMA
171.08
Negative
Market Momentum
MACD
-2.04
Positive
RSI
38.64
Neutral
STOCH
29.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ATCO.A, the sentiment is Negative. The current price of 148.6 is below the 20-day moving average (MA) of 153.71, below the 50-day MA of 154.23, and below the 200-day MA of 171.08, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ATCO.A.

Atlas Copco AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
kr162.73B21.1418.80%20.83%6.40%18.28%
77
Outperform
kr96.24B15.0811.14%3.67%-3.96%2.77%
76
Outperform
kr266.81B18.1115.81%26.09%-1.09%15.72%
75
Outperform
kr80.68B22.169.02%20.75%2.94%-59.33%
73
Outperform
kr74.24B32.1710.11%9.20%13.64%-4.83%
72
Outperform
kr699.66B25.0127.15%18.94%0.54%1.79%
65
Neutral
$10.36B15.105.28%2.01%2.70%-26.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ATCO.A
Atlas Copco AB
148.60
-47.06
-24.05%
SE:ALFA
Alfa Laval AB
390.90
-63.27
-13.93%
SE:SAND
Sandvik AB
214.50
8.13
3.94%
SE:SKF.B
SKF AB
214.90
10.24
5.00%
SE:TREL.B
Trelleborg AB
349.00
-53.93
-13.38%
SE:BEIJ.B
Beijer Ref AB Class B
148.75
-13.34
-8.23%

Atlas Copco AB Corporate Events

Atlas Copco Expands with Acquisition of Korean Compressor Manufacturer
Jun 18, 2025

Atlas Copco Group has expanded its operations by acquiring Kyungwon Machinery Industry Co., Ltd., a Korean-based manufacturer of oil-injected and oil-free screw air compressors, as well as oil-free scroll air compressors. This acquisition, which adds 126 employees to Atlas Copco, strengthens the company’s Industrial Air Division within its Compressor Technique Business Area. Kyungwon’s product offerings, which include compressed air and air treatment solutions, serve a diverse range of industries such as food and beverage, automotive, and semiconductor, positioning Atlas Copco to enhance its market presence in these sectors.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK167.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

Atlas Copco Acquires Spanish Compressor Manufacturer ABC Compressors
Jun 17, 2025

Atlas Copco AB has announced the acquisition of ABC Compressors, a Spanish manufacturer of reciprocating compressors for gas and air compression. This strategic acquisition, expected to close in the third quarter of 2025, aims to enhance Atlas Copco’s offerings in the gas and air compression sector, integrating ABC Compressors into its Air and Gas Applications division within the Compressor Technique Business Area.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK167.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

Atlas Copco Expands with Acquisition of Air Mac’s Compressed Air Business
Jun 13, 2025

Atlas Copco Group has expanded its operations by acquiring the compressed air business of Air Mac Inc., located in Dallas and Oklahoma City. This acquisition, which adds 40 employees to Atlas Copco, aims to enhance the company’s market presence in the region and integrate the business into its Compressor Technique Business Area, which reported revenues of 17 MUSD in 2024.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK167.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

Atlas Copco Announces 2025 Capital Markets Day in Germany
Jun 12, 2025

Atlas Copco Group has announced its upcoming Capital Markets Day scheduled for November 26, 2025, in Germany, where the company’s leadership will provide updates on its strategic direction and global operations. This event is significant for stakeholders as it offers insights into Atlas Copco’s future plans and operational developments, potentially impacting its market positioning and investor relations.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK167.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

Atlas Copco Acquires Swedish Distributor Itsab AB
Jun 4, 2025

Atlas Copco Group has announced the acquisition of Itsab AB, a Swedish distributor of compressors and power equipment, to enhance its service capabilities in northern Sweden. This strategic acquisition, expected to conclude in the third quarter of 2025, will integrate Itsab’s 21 employees into Atlas Copco’s Compressor Technique and Power Technique Business Areas, strengthening the company’s regional presence and expertise in servicing the mining, construction, and general industry sectors.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK167.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 02, 2025