Atlas Copco AB (ATCO.B) AI Stock Analysis

• Market Cap: kr735.61B
• Dividend Yield: 2.11%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.19
• Revenue Growth: 0.54%
• EPS Growth: 1.79%
• Country: SE
• Employees: 55,248
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): 1.35
• Shares Outstanding: 1,560,876,000
• 10 Day Avg. Volume: 2,011,686
• 30 Day Avg. Volume: 2,070,239
• PEG Ratio: -11.56
• Price to Book (P/B): 5.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.13
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Atlas Copco AB demonstrates strong financial performance with excellent profitability, a debt-free balance sheet, and robust cash flow generation, all contributing to its solid foundation for future growth. Despite technical indicators pointing to a bearish trend, its fair valuation with a reasonable dividend yield adds to its attractiveness. The absence of recent earnings call data and significant corporate events keeps focus on the company's fundamental strengths.

Atlas Copco AB Business Overview & Revenue Model

Company Description

Atlas Copco AB is a Swedish multinational industrial company that operates in the industrial equipment and tools sector. It designs, manufactures, and sells a wide range of products and services focused on productivity, energy efficiency, safety, and ergonomics. The company is segmented into four main business areas: Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique. These segments provide products such as air compressors, industrial tools and assembly systems, vacuum solutions, and construction equipment, serving diverse industries including manufacturing, automotive, electronics, and construction.

How the Company Makes Money

Atlas Copco makes money primarily through the sale of its industrial products and services across its four business areas. The Compressor Technique segment generates revenue from air compressors, gas and process compressors, and air and gas treatment equipment. The Vacuum Technique segment earns through the sale of vacuum pumps and related equipment, mainly targeting the semiconductor and scientific industries. The Industrial Technique segment provides industrial power tools and assembly systems, which are essential for the manufacturing and automotive sectors. The Power Technique segment offers portable compressors, pumps, and lighting towers for the construction and mining industries. Additionally, the company has a strong aftermarket business providing maintenance, parts, and services, which contributes significantly to its revenue. Atlas Copco also engages in strategic partnerships and acquisitions to expand its product offerings and market reach, enhancing its earnings potential.

Atlas Copco AB Financial Statement Overview

Summary

Atlas Copco AB exhibits strong financial health across all verticals. The company shows consistent revenue growth, high profitability margins, a debt-free balance sheet, and excellent cash flow generation. Its financial metrics indicate a stable and low-risk profile with effective capital management. Overall, Atlas Copco is well-positioned financially, with a solid foundation for future growth and resilience against potential market fluctuations.

Income Statement

Atlas Copco AB has demonstrated strong revenue growth with a Revenue Growth Rate of 2.38% from 2023 to 2024. The company maintains solid profitability metrics with a Gross Profit Margin of 42.86% and a Net Profit Margin of 16.85% in 2024. EBIT and EBITDA margins are robust as well, at 21.60% and 26.56% respectively, indicating efficient operations and expense management. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet is exceptionally strong with a Debt-to-Equity Ratio of 0.00 due to zero total debt in 2024, highlighting a debt-free position which reduces financial risk. The Return on Equity (ROE) stands at a remarkable 26.19%, pointing to effective use of shareholder funds. The Equity Ratio of 54.52% indicates a stable capital structure with ample equity backing the assets. The company's financial stability and low leverage are clear strengths.

Cash Flow

Atlas Copco's cash flow statement reveals a significant Free Cash Flow Growth Rate of 36.39% from 2023 to 2024, underscoring superb cash generation. The Operating Cash Flow to Net Income Ratio is 1.24, reflecting strong cash conversion from earnings. Additionally, the Free Cash Flow to Net Income Ratio of 1.04 further confirms efficient cash flow management. The cash flow indicators suggest robust liquidity and operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
176.63B	176.77B	172.66B	141.32B	110.91B	99.79B
	Gross Profit
75.45B	75.74B	75.12B	59.38B	46.53B	41.18B
	EBIT
37.30B	38.17B	37.09B	30.22B	23.56B	19.15B
	EBITDA
46.18B	47.50B	45.12B	36.07B	28.61B	23.91B
	Net Income Common Stockholders
29.21B	29.78B	28.04B	23.48B	18.13B	14.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.97B	19.33B	11.22B	11.85B	19.58B	11.65B
	Total Assets
199.05B	208.54B	188.21B	172.30B	136.68B	113.37B
	Total Debt
0.00	0.00	32.71B	36.30B	24.85B	24.63B
	Net Debt
-21.40B	15.74B	21.82B	25.05B	5.86B	12.97B
	Total Liabilities
88.36B	94.78B	96.70B	92.28B	69.05B	59.83B
	Stockholders Equity
110.63B	113.70B	91.45B	79.98B	67.63B	53.22B
Cash Flow		Free Cash Flow
30.88B	30.86B	22.63B	16.35B	19.79B	19.41B
	Operating Cash Flow
38.24B	36.89B	28.08B	21.38B	23.15B	22.20B
	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 Price: 138.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ATCO.B, the sentiment is Positive. The current price of 138.35 is below the 20-day moving average (MA) of 139.58, above the 50-day MA of 136.42, and below the 200-day MA of 152.34, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 45.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ATCO.B.

Atlas Copco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	81 Outperform	kr168.27B	21.86	18.80%	2.10%	6.40%	18.28%
ATCO.B	78 Outperform	kr735.61B	23.08	27.15%	2.11%	0.54%	1.79%
SAND	77 Outperform	kr267.18B	18.20	15.81%	2.70%	-1.09%	15.72%
SKF.B	77 Outperform	kr96.61B	15.28	11.14%	3.67%	-3.96%	2.77%
TREL.B	66 Neutral	kr80.26B	22.04	9.02%	2.14%	2.94%	-59.33%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
BEIJ.B	63 Neutral	kr74.69B	32.82	10.11%	0.89%	13.64%	-4.83%