Atlas Copco AB (ATCO.B) AI Stock Analysis

• Market Cap: kr738.57B
• Dividend Yield: 2.09%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.25
• Revenue Growth: -2.38%
• EPS Growth: -4.00%
• Country: SE
• Employees: 55,248
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 1,560,876,000
• 10 Day Avg. Volume: 1,400,676
• 30 Day Avg. Volume: 1,312,628
• PEG Ratio: 4.02
• Price to Book (P/B): 6.41
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 23.60
• 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: kr140.00
• Price Target Upside: -2.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr156.00 ▲(8.11% Upside)

Atlas Copco AB's strong financial performance is the most significant factor, supported by robust profitability and cash flow management. The technical analysis suggests a neutral trend, while the valuation indicates a premium price, partially offset by a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Cash Flow Management

Efficient cash flow management ensures the company can fund operations, invest in growth opportunities, and provide returns to shareholders, supporting long-term financial stability.

Robust Balance Sheet

A strong balance sheet with moderate leverage provides financial flexibility and resilience against economic downturns, enabling sustained business operations and strategic investments.

Recurring Revenue Streams

Recurring revenue from service agreements enhances customer loyalty and ensures stable cash flows, contributing to long-term financial health and reducing dependency on new equipment sales.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth could indicate challenges in market expansion or product demand, potentially impacting future profitability and necessitating strategic adjustments to sustain growth.

Negative EPS Growth

Negative EPS growth suggests potential profitability challenges, which could affect investor confidence and the company's ability to reinvest in business operations or distribute dividends.

Revenue Growth Concerns

Sustained revenue growth is crucial for long-term success. A decline may signal market saturation or competitive pressures, necessitating strategic initiatives to reignite growth.

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 generates revenue through multiple key channels, primarily by selling equipment and machinery in its core sectors. The company’s revenue model is structured around three main streams: product sales, service agreements, and rental services. Product sales account for a significant portion of earnings, where the company sells new equipment to various industries, including manufacturing, automotive, and construction. Service agreements, which include maintenance and aftermarket services, provide a steady stream of recurring revenue, enhancing customer loyalty and ensuring long-term relationships. Additionally, Atlas Copco offers rental services for its equipment, allowing customers to access high-quality machinery without upfront capital investment. The company also engages in strategic partnerships and acquisitions to broaden its product offerings and expand into new markets, further contributing to its revenue growth.

Atlas Copco AB Financial Statement Overview

Summary

Atlas Copco AB exhibits strong financial health with robust revenue growth, high profitability margins, a debt-free balance sheet, and excellent cash flow generation. The company is financially stable with effective capital management, indicating a low-risk profile and strong foundation for future growth.

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	171.55B	176.77B	172.66B	141.32B	110.91B	99.79B
Gross Profit	73.30B	75.74B	75.12B	59.38B	46.53B	41.18B
EBITDA	44.89B	47.50B	45.12B	36.07B	28.61B	23.91B
Net Income	27.59B	29.78B	28.04B	23.48B	18.13B	14.78B
Balance Sheet
Total Assets	207.53B	208.54B	188.21B	172.30B	136.68B	113.37B
Cash, Cash Equivalents and Short-Term Investments	26.50B	19.33B	11.22B	11.85B	19.58B	11.65B
Total Debt	35.39B	34.71B	32.71B	36.30B	24.85B	24.63B
Total Liabilities	100.84B	94.78B	96.70B	92.28B	69.05B	59.83B
Stockholders Equity	106.52B	113.70B	91.45B	79.98B	67.63B	53.22B
Cash Flow
Free Cash Flow	30.13B	30.86B	22.63B	16.35B	19.79B	19.41B
Operating Cash Flow	36.42B	36.89B	28.08B	21.38B	23.15B	22.20B
Investing Cash Flow	-12.35B	-13.32B	-9.39B	-15.50B	-6.12B	-16.29B
Financing Cash Flow	-15.75B	-15.86B	-18.28B	-14.65B	-10.32B	-8.55B

Atlas Copco AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 144.3 is above the 20-day moving average (MA) of 140.00, above the 50-day MA of 142.86, and above the 200-day MA of 139.34, indicating a bullish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 is Negative, 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
TREL.B	73 Outperform	kr85.38B	24.06	9.56%	1.94%	2.73%	7.56%
BEIJ.B	72 Outperform	€75.33B	30.72	11.04%	0.93%	9.08%	-3.36%
MYCR	71 Outperform	kr42.22B	24.14	26.95%	1.26%	14.48%	0.52%
ATCO.B	71 Outperform	kr738.57B	24.69	26.43%	2.09%	-2.38%	-4.00%
ALFA	71 Outperform	kr184.01B	22.06	20.42%	1.91%	3.54%	20.94%
SAND	70 Outperform	kr352.23B	23.82	16.39%	2.02%	-1.77%	21.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%