Epiroc AB (EPI.A) AI Stock Analysis

• Market Cap: kr251.00B
• Dividend Yield: 1.75%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.17
• Revenue Growth: 7.22%
• EPS Growth: -2.59%
• Country: SE
• Employees: 19,042
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 1.83
• Shares Outstanding: 823,765,800
• 10 Day Avg. Volume: 914,039
• 30 Day Avg. Volume: 1,052,355
• PEG Ratio: 13.22
• Price to Book (P/B): 6.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.10
• 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: kr205.20
• Price Target Upside: -5.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 80 Outperform
• Price Target: ―

Epiroc AB's overall stock score of 80 reflects its strong financial performance, particularly in revenue and cash flow growth, supported by a robust balance sheet. The positive sentiment from the latest earnings call, highlighting record orders and strategic growth in automation and electrification, further enhances its outlook. However, valuation concerns due to a high P/E ratio and challenges in the construction market slightly temper the score. The technical analysis suggests some caution due to potential overbought conditions and negative short-term momentum.

Epiroc AB Business Overview & Revenue Model

Company Description

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in Sweden. It operates through Equipment & Service and Tools & Attachments segments. The Equipment & Service segment provides equipment and solutions for rock drilling, mechanical rock excavation, rock reinforcement, loading and haulage, exploration drilling, and ventilation systems, as well as drilling equipment for water and energy; and related spare parts, services, and solutions. This segment also provides solutions for automation, digitalization, and electrification. The Tools & Attachments segment offers rock drilling tools and hydraulic attachments that are used primarily for drilling, deconstruction, recycling, and rock excavation. The company was founded in 1873 and is headquartered in Nacka, Sweden.

How the Company Makes Money

Epiroc AB generates revenue primarily through the sale of equipment and aftermarket services. Its key revenue streams include the production and sale of drilling rigs, rock excavation equipment, construction tools, and related consumables. The company also offers comprehensive service solutions, including maintenance, repairs, and parts, which provide a steady stream of income beyond initial equipment sales. Epiroc's business model is further supported by strategic partnerships with mining and infrastructure companies, enabling it to offer tailored solutions and foster long-term customer relationships. Additionally, Epiroc enhances its earnings through technological innovations and digital solutions that optimize operational efficiency for its clients.

Epiroc AB Financial Statement Overview

Summary

Epiroc AB's financial statements reveal a highly stable and profitable company with strong growth trajectories in revenue and free cash flow. The debt-free balance sheet enhances its financial flexibility and reduces risk, while strong margins and cash flows indicate operational efficiency. The company is well-positioned for continued growth and value creation in the competitive agricultural machinery industry.

Income Statement

Epiroc AB has demonstrated strong financial performance, with consistent revenue growth over the years, including a notable increase from SEK 60.34 billion in 2023 to SEK 63.60 billion in 2024. The company maintains high profitability with a steady gross profit margin, and although there was a slight decline in EBIT and net profit margins in 2024 compared to 2023, they remain robust. These factors indicate a well-managed income statement with effective cost control and solid revenue generation capabilities.

Balance Sheet

The balance sheet of Epiroc AB is exceptionally strong, characterized by a debt-free position in 2024, enhancing financial stability. The company has grown its equity base, reflecting strong financial health, and maintains a high equity ratio. The return on equity remains impressive, indicating efficient use of shareholder funds. The balance sheet reflects a solid foundation for future growth with a prudent capital structure.

Cash Flow

Epiroc AB exhibits a robust cash flow position, with significant growth in free cash flow from SEK 5.46 billion in 2023 to SEK 8.60 billion in 2024, driven by strong operating cash flows. The company effectively balances its capital expenditures, ensuring sustainable free cash flow generation. These factors highlight strong cash flow management, providing ample liquidity for reinvestment and shareholder returns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
65.00B	63.60B	60.34B	49.69B	39.65B	36.12B
	Gross Profit
23.90B	22.95B	23.15B	19.02B	15.45B	13.70B
	EBIT
13.14B	12.38B	13.18B	11.15B	8.99B	7.38B
	EBITDA
16.26B	15.47B	15.69B	13.25B	10.92B	9.08B
	Net Income Common Stockholders
8.92B	8.73B	9.43B	8.40B	7.06B	5.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.11B	7.18B	6.40B	7.33B	10.79B	15.05B
	Total Assets
80.85B	83.59B	67.78B	61.78B	48.58B	43.89B
	Total Debt
21.37B	0.00	13.97B	10.74B	9.18B	10.06B
	Net Debt
12.26B	14.39B	7.57B	3.42B	-1.61B	-5.00B
	Total Liabilities
0.00	40.41B	30.57B	28.27B	22.80B	20.15B
	Stockholders Equity
42.10B	42.76B	36.82B	33.02B	25.73B	23.69B
Cash Flow		Free Cash Flow
8.62B	8.60B	5.46B	4.54B	6.68B	7.33B
	Operating Cash Flow
10.89B	10.46B	7.14B	5.56B	7.61B	8.33B
	Investing Cash Flow
-11.71B	-11.69B	-5.24B	-5.99B	-3.47B	-608.00M
	Financing Cash Flow
-3.64B	1.90B	-2.64B	-3.23B	-8.44B	-990.00M

Epiroc AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 217.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPI.A, the sentiment is Positive. The current price of 217.3 is below the 20-day moving average (MA) of 217.62, above the 50-day MA of 205.34, and above the 200-day MA of 203.50, indicating a neutral trend. The MACD of 2.01 indicates Positive momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EPI.A.

Epiroc AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPI.A	80 Outperform	kr251.00B	29.43		1.75%	7.22%	-2.59%
ATCO.B	78 Outperform	kr737.87B	23.08	27.15%	2.10%	0.54%	1.79%
SAND	77 Outperform	kr268.19B	18.20	15.81%	2.69%	-1.09%	15.72%
VOLV.B	75 Outperform	kr535.58B	11.58	25.90%	3.04%	-6.35%	-9.41%
VOLV.A	74 Outperform	kr535.58B	11.64	25.90%	3.02%	-6.35%	-9.41%
ATCO.A	72 Outperform	kr737.87B	26.33	27.15%	1.85%	0.54%	1.79%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%