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Epiroc AB (SE:EPI.A)
:EPI.A
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Epiroc AB
(EPI.A)
Rating:74Outperform
Price Target:
kr237.00
â–²(11.58%Upside)
Epiroc AB (EPI.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr239.51B
Dividend Yield17.72%
Average Volume (3M)925.60K
Price to Earnings (P/E)28.0
Beta (1Y)1.17
Revenue Growth7.22%
EPS Growth-2.59%
CountrySE
Employees19,042
SectorIndustrials
Sector Strength87
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.83
Shares Outstanding823,765,800
10 Day Avg. Volume1,081,492
30 Day Avg. Volume925,603
Financial Highlights & Ratios
PEG Ratio2.66
Price to Book (P/B)5.94
Price to Sales (P/S)0.00
P/FCF Ratio21.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr206.00Price Target Upside-3.01% Downside
Rating ConsensusHold
Number of Analyst Covering9
Epiroc AB Business Overview & Revenue Model
Company DescriptionEpiroc AB is a leading productivity partner for the mining, infrastructure, and natural resources industries. The company develops and produces innovative equipment, consumables, and service solutions that are used in surface and underground mining, infrastructure, civil works, well drilling, and geotechnical applications. Headquartered in Stockholm, Sweden, Epiroc operates in multiple countries and is known for its robust portfolio of products and services that enhance operational efficiency and safety.
How the Company Makes MoneyEpiroc 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 Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2024)
| % Change Since: 6.09%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
Epiroc demonstrated strong growth and operational efficiency in key strategic areas like mining, automation, and electrification, achieving record orders and revenue. However, challenges in construction demand and margin pressures from acquisitions and market weaknesses presented notable obstacles. The overall sentiment is slightly positive but tempered by these challenges.Q4-2024 Updates
Positive Updates
Record High Orders and Revenue
Epiroc achieved record highs for orders received and revenues in 2024, supported by acquisitions and strong mining development. Orders in Q4 increased 12% to SEK 16.2 billion, with organic growth of 5%.
Growth in Strategic Areas
Epiroc increased its number of driverless machines by 21% in 2024. Orders for Digital Solutions increased by more than 30%, with strong demand for automation and digitalization solutions.
Electrification Progress
The electrification revenues of group total were 4.2% with significant orders for battery electric equipment. 39 mining sites globally have ordered BEV equipment since 2018, with 28% reordering.
Operational Efficiency Improvements
Sequential inventory reduction by SEK 1 billion with lead times back to normal levels. Workforce reduced by 1,135 employees in 2024 as part of efficiency measures.
Strong Cash Flow
Record high operating cash flow of nearly SEK 4 billion in Q4, representing a 104% cash conversion rate.
Negative Updates
Decrease in Operating Profit Margin
The operating profit margin decreased due to weaker construction demand and dilution from acquisitions. Adjusted EBIT margin was 19.8%, down from the previous year.
Weak Construction Market
Demand for attachments used in construction was weak, impacting overall orders and revenue mix negatively.
Tools & Attachment Segment Challenges
Mixed demand with 1% negative organic revenue development and dilution from acquisitions affecting the margin. Seasonality and one-time costs impacted performance.
Company Guidance
In the Epiroc Q4 and Full Year Results Presentation for 2024, the company reported record highs in orders received and revenues, driven by strong demand in mining equipment and services, despite a weaker construction market. The adjusted operating margin (EBIT) was 19.8%, with a noted decrease due to dilution effects and higher construction activity following the Stanley Infrastructure acquisition. Automation initiatives saw a 21% increase in driverless machines, with over 3,450 automated mixed fleet machines deployed. Digital Solutions orders grew by over 30%, while electrification revenues reached 4.2%. The company's efficiency actions included a workforce reduction of around 1,135 employees in 2024 and a SEK 1 billion inventory reduction. The Tools & Attachment segment experienced a 39% order growth, mainly due to the Stanley acquisition, despite a negative 1% organic revenue change. Epiroc's net debt-to-EBITDA ratio was 0.93%, and the Board proposed a dividend of SEK 3.80 per share. The company expects strong mining demand to continue, while construction demand remains weak.Epiroc AB Financial Statement Overview
Summary
Epiroc AB has demonstrated strong financial performance with consistent revenue growth and strong profitability metrics. The balance sheet is debt-free, enhancing financial stability, and the company shows robust cash flow management. These factors indicate a well-managed company with effective cost control and revenue generation capabilities.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.85
Very Positive
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.90
Very Positive
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.88
Very Positive
| 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 |
| EBITDA | 16.26B | 15.47B | 15.69B | 13.25B | 10.92B | 9.08B |
| Net Income | 8.92B | 8.73B | 9.43B | 8.40B | 7.06B | 5.40B |
Balance Sheet | ||||||
| Total Assets | 80.85B | 83.59B | 67.78B | 61.78B | 48.58B | 43.89B |
| Cash, Cash Equivalents and Short-Term Investments | 9.11B | 7.18B | 6.40B | 7.33B | 10.79B | 15.05B |
| Total Debt | 21.37B | 21.57B | 13.97B | 10.74B | 9.18B | 10.06B |
| 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
Positive
212.40
Price Trends
211.31
Positive
208.09
Positive
205.19
Positive
Market Momentum
-1.17
Positive
51.85
Neutral
38.91
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 212.4 is above the 20-day moving average (MA) of 211.29, above the 50-day MA of 211.31, and above the 200-day MA of 205.19, indicating a bullish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 38.91 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | kr715.74B | 22.33 | 27.15% | 21.63% | 0.54% | 1.79% | |
78 Outperform | kr540.90B | 11.71 | 25.90% | 3.01% | -6.35% | -9.41% | |
76 Outperform | kr271.45B | 18.43 | 15.81% | 2.66% | -1.09% | 15.72% | |
76 Outperform | kr715.74B | 25.57 | 27.15% | 1.91% | 0.54% | 1.79% | |
74 Outperform | kr239.51B | 28.02 | 17.72% | 7.22% | -2.59% | ||
74 Outperform | kr540.90B | 11.71 | 25.90% | 3.95% | -6.35% | -9.41% | |
58 Neutral | $1.33B | 4.20 | -2.93% | 7.45% | 3.67% | -51.13% |
* Industrials Sector Average
Performance Comparison
SE:EPI.A
Epiroc AB
211.70
3.35
1.61%
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267.20
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SE:ATCO.A
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SE:SAND
Sandvik AB
223.20
15.09
7.25%
SE:VOLV.B
Volvo AB
271.10
19.51
7.76%
SE:ATCO.B
Atlas Copco AB
137.35
-28.60
-17.23%
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.