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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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
176.63B176.77B172.66B141.32B110.91B99.79B
Gross Profit
75.45B75.74B75.12B59.38B46.53B41.18B
EBIT
37.30B38.17B37.09B30.22B23.56B19.15B
EBITDA
45.68B46.40B44.17B36.07B28.61B23.91B
Net Income Common Stockholders
29.21B29.78B28.04B23.48B18.13B14.78B
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.97B19.33B11.22B11.85B19.58B11.65B
Total Assets
199.05B208.54B182.68B172.30B136.68B113.37B
Total Debt
33.04B0.0032.71B36.30B24.85B24.63B
Net Debt
11.64B15.74B21.82B25.05B5.86B12.97B
Total Liabilities
88.36B94.78B91.18B92.28B69.05B59.83B
Stockholders Equity
110.63B113.70B91.45B79.98B67.63B53.22B
Cash FlowFree Cash Flow
31.39B30.86B22.63B16.35B19.79B19.41B
Operating Cash Flow
38.24B36.89B28.08B21.38B23.15B22.20B
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
Positive
Last Price157.80
Price Trends
50DMA
154.72
Positive
100DMA
167.70
Negative
200DMA
172.79
Negative
Market Momentum
MACD
-0.06
Positive
RSI
51.43
Neutral
STOCH
52.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ATCO.A, the sentiment is Positive. The current price of 157.8 is below the 20-day moving average (MA) of 158.83, above the 50-day MA of 154.72, and below the 200-day MA of 172.79, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ATCO.A.

Atlas Copco 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%
77
Outperform
kr267.18B18.2015.81%2.70%-1.09%15.72%
77
Outperform
kr97.49B15.2811.14%3.63%-3.96%2.77%
72
Outperform
kr737.87B26.3327.15%1.85%0.54%1.79%
66
Neutral
kr81.58B22.409.02%2.12%2.94%-59.33%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
63
Neutral
kr75.73B32.8210.11%0.88%13.64%-4.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ATCO.A
Atlas Copco AB
157.80
-42.28
-21.13%
SE:ALFA
Alfa Laval AB
414.30
-55.52
-11.82%
SE:SAND
Sandvik AB
213.80
-1.60
-0.74%
SE:SKF.B
SKF AB
214.10
-3.25
-1.50%
SE:TREL.B
Trelleborg AB
352.70
-56.88
-13.89%
SE:BEIJ.B
Beijer Ref AB Class B
149.30
-14.68
-8.95%
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.