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

Atlas Copco AB (ATCO.A) AI Stock Analysis

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SE:ATCO.A

Atlas Copco AB

(ATCO.A)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
kr206.00
▲(12.26% Upside)
The score is driven by strong underlying financial quality (durable margins, high ROE, improving leverage) and supportive technical trend signals. This is tempered by a rich valuation (high P/E and modest yield) and recent slowing in revenue, earnings, and free-cash-flow momentum.
Positive Factors
Sustained margin profile
Consistently high gross and operating margins indicate durable pricing power and operational efficiency across product lines. This margin stability supports reinvestment in R&D and aftermarket services, helping preserve earnings quality through industry cycles and enabling long-term cash generation.
High ROE and improving leverage
Elevated ROE reflects efficient capital allocation and strong returns on invested equity, while falling leverage reduces financial risk. Together these trends bolster balance-sheet resilience, increase flexibility for strategic investment, and support shareholder returns over multiple-year horizons.
Recurring aftermarket revenue and diversified segments
A meaningful aftermarket services business provides recurring, higher-margin revenue and customer stickiness, cushioning equipment-sales cyclicality. Combined with diversified segments (Compressors, Vacuum, Industrial, Power), this supports steadier cash flows and long-term customer relationships.
Negative Factors
Recent revenue and profit cooling
A downturn in top-line and net income growth signals weaker end-market demand and threatens momentum. If prolonged, slowed sales can compress operating leverage, reduce reinvestment capacity, and pressure margins despite structural strengths in margins and aftermarket exposure.
Weaker cash conversion in 2025
A decline in operating and free cash flow erodes financial flexibility to fund capex, R&D, dividends or buybacks. Persistent weaker cash conversion raises funding risk for strategic initiatives and could force tougher capital-allocation trade-offs during slower demand periods.
Cyclicality exposure of end markets
Heavy exposure to construction, mining and industrial equipment markets makes revenue vulnerable to macro and commodity cycles. New equipment demand can be lumpy; even with aftermarket resilience, prolonged downturns in these sectors can materially depress revenue and utilization over multiple quarters.

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

Atlas Copco AB Business Overview & Revenue Model

Company DescriptionAtlas 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 MoneyAtlas Copco generates revenue primarily through the sale of its diverse range of products and services. The company operates through several key segments: Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique. Each segment contributes to revenue through the sale of equipment, aftermarket services, and spare parts. The aftermarket services, including maintenance and repair, represent a significant and recurring revenue stream. Additionally, strategic partnerships with other companies and industries enhance Atlas Copco's market reach and contribute to its earnings. The company also focuses on innovation, investing in research and development to create advanced, energy-efficient solutions that meet the evolving needs of its customers, thus driving sales and enhancing profitability.

Atlas Copco AB Financial Statement Overview

Summary
High-quality profitability and capital efficiency (steady ~42–44% gross margin, ~19–22% operating margin; ROE ~24–31%) with moderate, improving leverage (debt-to-equity ~0.31–0.32 in 2024–2025). The main offset is cooling momentum: 2025 revenue and net income declined versus 2024, and free cash flow also softened.
Income Statement
86
Very Positive
Profitability is consistently strong, with gross margin steady around ~42–44% and operating profitability holding near ~19–22% over 2020–2025. Net margin remains healthy (~15–17%), supporting resilient earnings power. Growth has been solid longer-term (2021–2023 strong), but momentum has cooled recently: 2024 revenue growth was modest (~2%) and 2025 revenue declined (~2%), with net income also down versus 2024—suggesting a more challenging demand/volume environment.
Balance Sheet
82
Very Positive
Leverage looks moderate and well-controlled, with debt-to-equity improving from the higher 2020–2022 range (~0.45–0.46) to ~0.31–0.32 in 2024–2025, supported by rising equity. Returns on equity are consistently high (~24–31%), indicating efficient capital use. The main watch-out is that ROE has eased from peak levels (2023 to 2025), which aligns with softer profit trends.
Cash Flow
78
Positive
Cash generation is solid and generally tracks earnings well: free cash flow is ~76–87% of net income across the period, indicating good earnings quality. However, cash conversion is not consistently strong—operating cash flow as a share of revenue has been moderate (~35–71% range), and 2025 saw declines in operating and free cash flow with negative free-cash-flow growth (~-8%), pointing to some near-term pressure on cash generation.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue168.34B176.77B172.66B141.32B110.91B
Gross Profit72.21B75.74B75.12B59.38B46.54B
EBITDA43.64B46.40B44.17B36.07B28.61B
Net Income26.42B29.78B28.04B23.48B18.13B
Balance Sheet
Total Assets202.45B208.54B182.68B172.30B136.68B
Cash, Cash Equivalents and Short-Term Investments16.13B19.33B11.22B11.85B19.58B
Total Debt34.90B34.71B32.71B36.30B24.85B
Total Liabilities92.07B94.78B91.18B92.28B69.05B
Stockholders Equity110.21B113.70B91.45B79.98B67.63B
Cash Flow
Free Cash Flow28.28B30.86B22.63B16.35B19.79B
Operating Cash Flow32.57B36.89B28.08B21.38B23.15B
Investing Cash Flow-17.62B-13.32B-9.39B-15.50B-6.12B
Financing Cash Flow-16.37B-15.86B-18.28B-14.65B-10.32B

Atlas Copco AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price183.50
Price Trends
50DMA
169.54
Positive
100DMA
165.22
Positive
200DMA
158.43
Positive
Market Momentum
MACD
5.02
Positive
RSI
56.21
Neutral
STOCH
25.13
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 183.5 is above the 20-day moving average (MA) of 182.45, above the 50-day MA of 169.54, and above the 200-day MA of 158.43, indicating a bullish trend. The MACD of 5.02 indicates Positive momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
kr850.76B33.5326.43%1.82%-2.38%-4.00%
73
Outperform
kr86.61B24.369.56%1.95%2.73%7.56%
71
Outperform
kr209.56B25.1220.42%1.84%3.54%20.94%
70
Outperform
kr434.52B29.5816.39%1.94%-1.77%21.13%
64
Neutral
kr40.88B23.3826.95%1.71%14.48%0.52%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
kr68.40B27.9011.04%0.95%9.08%-3.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ATCO.A
Atlas Copco AB
183.75
1.14
0.62%
SE:ALFA
Alfa Laval AB
517.40
32.31
6.66%
SE:MYCR
Mycronic AB
205.80
-15.04
-6.81%
SE:SAND
Sandvik AB
351.70
128.23
57.38%
SE:TREL.B
Trelleborg AB
360.00
-49.38
-12.06%
SE:BEIJ.B
Beijer Ref AB Class B
126.85
-36.62
-22.40%

Atlas Copco AB Corporate Events

Atlas Copco Maintains Payout and Incentives Despite 2025 Profit and Margin Decline
Jan 27, 2026

Atlas Copco reported a softer 2025 with orders received down 3% to SEK 165.8 billion and revenues down 5% to SEK 168.3 billion, largely hit by adverse currency effects, even as organic order intake grew 1% and acquisitions contributed 2%. Full-year operating profit fell 11% to SEK 34.1 billion with the margin slipping to 20.3%, pressured by negative FX, restructuring costs in the Vacuum Technique and Industrial Technique business areas, and a slight organic revenue decline, while operating cash flow before acquisitions and dividends fell to SEK 26.8 billion from SEK 31.0 billion. In the fourth quarter, orders grew organically by 4% but headline revenues dropped 7%, margins narrowed, and earnings per share declined, reflecting a tougher profit environment despite stable customer activity. Still, the Board signaled confidence by proposing an unchanged ordinary dividend of SEK 3.00 per share plus an extra SEK 2.00, lifting total capital distribution to SEK 24.4 billion, to be paid in two tranches, and it plans to maintain a performance-based long-term incentive program for management, indicating continued focus on shareholder returns and management alignment even amid margin pressure.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK200.00 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 Lifts Orders but Margins and Cash Flow Weaken in Q4 2025
Jan 27, 2026

Atlas Copco reported a mixed fourth quarter for 2025, with order intake rising organically by 4% to MSEK 38,606 as both equipment and service orders increased across North America, Europe and Asia, while revenues declined 7% to MSEK 42,782 and adjusted operating margin slipped to 20.5% amid geopolitical uncertainty and customer hesitancy. Despite lower profits, reduced operating cash flow and a drop in return on capital employed to 24%, the board maintained an ordinary dividend of SEK 3.00 per share and added an extra SEK 2.00 distribution, underscoring confidence in the group’s resilience as management continues to prioritize technology innovation and expects near-term customer activity to stay at current levels.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK200.00 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 to Present Q4 2025 Results on January 27
Jan 13, 2026

Atlas Copco Group has announced that it will publish its fourth-quarter 2025 results on January 27, 2026, at around 12:00 CET, followed by a conference call for investors, analysts and media at 14:00 CET the same day. President and CEO Vagner Rego and CFO Peter Kinnart will present the report and take questions, with the event accessible via webcast and teleconference and supporting materials and a recording to be made available afterward on the company’s investor relations website, underscoring Atlas Copco’s ongoing emphasis on transparency and engagement with the financial community.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK200.00 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 U.S. compressor footprint with Florida acquisition
Jan 7, 2026

Atlas Copco has acquired the assets of Air Compressor Works Inc., a Florida-based distributor of air compressor equipment and services whose customers are primarily general industry operators in South Florida. Founded in 1979, Air Compressor Works’ 50 employees will join Atlas Copco, and the business, which generated roughly USD 16 million in revenue in 2024, will be integrated into the service division of Atlas Copco’s Compressor Technique Business Area, strengthening the group’s regional presence and supporting the growth of its Quincy Compressor brand; financial terms of the deal were not disclosed.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK162.00 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 Finalizes Acquisition of Brazilian Compressor Distributor Centroar
Jan 7, 2026

Atlas Copco has completed the acquisition of Centro do Ar Comprimido do Recife Ltda (Centroar), a Recife-based distributor of compressors and power equipment in northeastern Brazil. Centroar, which serves customers across general industry, mining, paper, construction and infrastructure sectors, and employs 28 people, will be integrated into the service division of Atlas Copco’s Compressor Technique business area, strengthening the group’s regional service footprint and customer support capabilities in a key industrial market.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK162.00 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 AB Secures New Credit Rating Agreement with Moody’s
Dec 11, 2025

Atlas Copco AB has entered into a new credit rating agreement with Moody’s Investor Services, replacing Standard & Poor’s as one of its rating agencies alongside Fitch. This agreement ensures that Atlas Copco’s capital market issuance will continue to be rated by two agencies, with Moody’s assigning a long-term issuer default rating of A1 with a stable outlook, while Fitch maintains an A+ rating with a stable outlook. This move is significant for the company’s financial stability and creditworthiness, impacting its ability to secure loans and manage debt effectively.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK162.00 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 in Brazil with Centroar Acquisition
Dec 8, 2025

Atlas Copco AB has announced the acquisition of Centro do Ar Comprimido do Recife Ltda, a compressor distributor based in Recife, Brazil. This strategic acquisition, expected to be finalized in the first quarter of 2026, aims to enhance Atlas Copco’s market presence and strengthen direct customer relations in Brazil’s Northeast region, integrating Centroar into its service division within the Compressor Technique Business Area.

The most recent analyst rating on ($SE:ATCO.A) stock is a Buy with a SEK178.00 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 Highlights Strategic Developments at Capital Markets Day
Nov 26, 2025

Atlas Copco Group hosted its capital markets day in Germany to discuss its strategic direction and developments, particularly in the Vacuum Technique and Industrial Technique business areas. The event included presentations by key executives and an innovation tour showcasing the company’s latest technological advancements, emphasizing its commitment to maintaining current customer activity levels.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK174.00 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 UK Presence with Anglian Acquisition
Nov 10, 2025

Atlas Copco Group has acquired Anglian Compressors and Equipment Limited, a British compressed air distributor based in Cambridgeshire, UK. This acquisition strengthens Atlas Copco’s sales and service presence in the East of England, potentially opening new opportunities for growth within the Compressor Technique business area. The integration of Anglian into Atlas Copco’s service division is expected to enhance the company’s market positioning and service capabilities in the region.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK174.00 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 Engineering Automation Systems to Enhance CPQ Solutions
Nov 5, 2025

Atlas Copco Group has acquired Engineering Automation Systems GmbH (EAS), a German company specializing in software for engineering and automation of CPQ solutions. This acquisition, which integrates EAS into the Gas and Process Division within the Compressor Technique Business Area, aims to enhance Atlas Copco’s project quoting processes, benefiting both current and future customers. EAS’s expertise in CPQ solutions is expected to improve speed, accuracy, and efficiency in generating proposals and managing sales processes across various industry segments.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK174.00 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 Brazilian Filtration Firm
Nov 4, 2025

Atlas Copco Group has acquired MKG Equipamentos Ltda., a Brazilian company specializing in industrial process filtration solutions, to enhance its portfolio and regional presence. This strategic acquisition, integrating MKG into the Medical Gas Solutions division, is expected to bolster Atlas Copco’s offerings in the pharmaceutical, food & beverage, and energy sectors, although the purchase price remains undisclosed.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK174.00 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: Jan 29, 2026