Atlas Copco AB (ATCO.A) AI Stock Analysis

• Market Cap: kr701.17B
• Dividend Yield: 1.91%
• Average Volume (3M): 6.32M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.18
• Revenue Growth: 0.54%
• EPS Growth: 1.79%
• Country: SE
• Employees: 55,248
• Sector: Industrials
• Sector Strength: 82
• Industry: Industrial - Machinery
• EPS (TTM): 1.35
• Shares Outstanding: 3,357,576,400
• 10 Day Avg. Volume: 5,556,262
• 30 Day Avg. Volume: 6,316,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: kr163.50
• Price Target Upside: 7.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

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 Business Overview & Revenue Model

Company Description

Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.

How the Company Makes Money

Atlas 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

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

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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
176.77B	172.66B	141.32B	110.91B	99.79B
	Gross Profit
75.74B	75.12B	59.38B	46.53B	41.18B
	EBIT
38.17B	37.09B	30.22B	23.56B	19.15B
	EBITDA
46.40B	44.17B	36.07B	28.61B	23.91B
	Net Income Common Stockholders
29.78B	28.04B	23.48B	18.13B	14.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.33B	11.22B	11.85B	19.58B	11.65B
	Total Assets
208.54B	182.68B	172.30B	136.68B	113.37B
	Total Debt
0.00	32.71B	36.30B	24.85B	24.63B
	Net Debt
15.74B	21.82B	25.05B	5.86B	12.97B
	Total Liabilities
94.78B	91.18B	92.28B	69.05B	59.83B
	Stockholders Equity
113.70B	91.45B	79.98B	67.63B	53.22B
Cash Flow		Free Cash Flow
30.86B	22.63B	16.35B	19.79B	19.41B
	Operating Cash Flow
36.89B	28.08B	21.38B	23.15B	22.20B
	Investing Cash Flow
-13.32B	-9.39B	-15.50B	-6.12B	-16.29B
	Financing Cash Flow
-15.86B	-18.28B	-14.65B	-10.32B	-8.55B

Atlas Copco AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 151.50
• 50DMA: Negative
• 100DMA: Negative
• 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:ATCO.A, the sentiment is Neutral. The current price of 151.5 is above the 20-day moving average (MA) of 149.64, below the 50-day MA of 160.78, and below the 200-day MA of 174.37, indicating a neutral trend. The MACD of -2.14 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:ATCO.A.

Atlas Copco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATCO.A	72 Outperform	kr701.17B	25.31	27.15%	1.91%	0.54%	1.79%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%