Epiroc AB (EPI.A) AI Stock Analysis

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Epiroc AB

(EPI.A)

Rating:66Neutral

Price Target:

kr220.00

▲(7.79% Upside)

Epiroc AB's overall stock score is primarily influenced by its strong financial performance, characterized by robust profitability and operational efficiency. However, the high valuation and potential overbought technical indicators present risks. The absence of earnings call insights and corporate events limits additional context for the score.

Epiroc AB (EPI.A) vs. iShares MSCI Sweden ETF (EWD)

Market Cap

kr236.23B

Dividend Yield1.86%

Average Volume (3M)994.15K

Price to Earnings (P/E)27.2

Beta (1Y)1.18

Revenue Growth3.92%

EPS Growth4.96%

CountrySE

Employees19,042

SectorIndustrials

Sector Strength73

IndustryAgricultural - Machinery

Share Statistics

EPS (TTM)1.83

Shares Outstanding823,765,800

10 Day Avg. Volume1,079,809

30 Day Avg. Volume994,152

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

kr211.13

Price Target Upside3.44% Upside

Rating ConsensusHold

Number of Analyst Covering8

Epiroc AB Business Overview & Revenue Model

Company DescriptionEpiroc 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 MoneyEpiroc generates revenue primarily through the sale of equipment and services to the mining and construction industries. Its revenue model is diversified into two main segments: Equipment and Services. The Equipment segment includes the sale of drilling rigs, loaders, and other machinery, while the Services segment encompasses aftermarket services, spare parts, and maintenance contracts. Key revenue streams include direct sales to customers, ongoing service contracts, and digital solutions that improve operational efficiency. Epiroc also benefits from strategic partnerships with major mining companies and contractors, which enhance its market presence and drive long-term contracts, contributing significantly to its earnings.

Epiroc AB Earnings Call Summary

Earnings Call Date:Jul 18, 2025

(Q4-2024)

% Change Since: |

Next Earnings Date:Oct 29, 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 demonstrates strong profitability and operational efficiency, with healthy margins and a solid equity base. However, the recent decline in revenue growth and slightly reduced net profit margin highlight potential challenges in sustaining growth. The company maintains a balanced leverage position, and its cash flow generation remains robust, supporting its financial stability.

Income Statement

Positive

Epiroc AB's income statement shows a strong gross profit margin of 37.1% for TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 14.1%, and revenue growth has turned negative at -2.1% TTM, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a moderate debt-to-equity ratio of 0.55, indicating manageable leverage. Return on equity is robust at 22.1%, showcasing effective use of equity to generate profits. The equity ratio stands at 48.6%, suggesting a solid equity base relative to total assets.

Cash Flow

Positive

Cash flow analysis reveals a positive free cash flow growth rate of 5.1% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.51, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio of 0.81 reflects a strong ability to convert profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.62B	63.60B	60.34B	49.69B	39.65B	36.12B
Gross Profit	23.63B	22.95B	23.15B	19.02B	15.45B	13.70B
EBITDA	16.15B	15.47B	15.69B	13.25B	10.92B	9.08B
Net Income	8.98B	8.73B	9.43B	8.40B	7.06B	5.40B
Balance Sheet
Total Assets	79.35B	83.59B	67.78B	61.78B	48.58B	43.89B
Cash, Cash Equivalents and Short-Term Investments	9.00B	7.18B	6.40B	7.33B	10.79B	15.05B
Total Debt	21.35B	21.57B	13.97B	10.74B	9.18B	10.06B
Total Liabilities	40.76B	40.41B	30.57B	28.27B	22.80B	20.15B
Stockholders Equity	38.58B	42.76B	36.82B	33.02B	25.73B	23.69B
Cash Flow
Free Cash Flow	9.06B	8.60B	5.46B	4.54B	6.68B	7.33B
Operating Cash Flow	11.15B	10.46B	7.14B	5.56B	7.61B	8.33B
Investing Cash Flow	-3.45B	-11.69B	-5.24B	-5.99B	-3.47B	-608.00M
Financing Cash Flow	-6.25B	1.90B	-2.64B	-3.23B	-8.44B	-990.00M

Epiroc AB Technical Analysis

Technical Analysis Sentiment

Positive

Last Price204.10

Price Trends

50DMA

202.65

Positive

100DMA

206.75

Negative

200DMA

204.56

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

59.36

Neutral

STOCH

90.95

Negative

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 204.1 is above the 20-day moving average (MA) of 197.56, above the 50-day MA of 202.65, and below the 200-day MA of 204.56, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 90.95 is Negative, 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPI.A	66 Neutral	kr236.23B	27.24		1.86%	3.92%	4.96%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
0XXV	―	kr749.76B	24.50	28.28%	―	―	―
0XXT	―	kr749.76B	27.40	28.28%	―	―	―
0MHW	―	kr557.24B	14.58	22.62%	―	―	―
0HTP	―	kr557.24B	14.60	22.62%	―	―	―
FNM	49 Neutral	kr712.09M	―		―	24.10%	-48.15%

* Industrials Sector Average

Performance Comparison

SE:EPI.A

Epiroc AB

204.10

19.38

10.49%

GB:0XXV

Atlas Copco AB

140.58

-12.48

-8.15%

GB:0XXT

Atlas Copco AB

157.77

-16.83

-9.64%

GB:0MHW

Volvo AB

272.20

34.25

14.39%

GB:0HTP

Volvo AB

273.96

39.69

16.94%

SE:FNM

Ferronordic AB

47.05

-17.45

-27.05%

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: Sep 10, 2025