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Epiroc AB (SE:EPI.A)
:EPI.A
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Epiroc AB (EPI.A) AI Stock Analysis

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SE:EPI.A

Epiroc AB

(EPI.A)

Rating:68Neutral
Price Target:
kr219.00
▲(6.36%Upside)
Epiroc AB's overall stock score is driven primarily by strong financial performance, reflecting significant revenue growth and robust profitability. Technical analysis suggests mixed signals with potential buying opportunities due to nearing oversold conditions. Valuation indicates the stock might be overvalued, but a reasonable dividend yield offers some positive offset.

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

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 AB generates revenue primarily through the sale and leasing of equipment and tools used in mining and infrastructure projects. The company's key revenue streams include the manufacture and sale of drilling rigs, rock excavation equipment, and related consumables, as well as aftermarket services like maintenance, spare parts, and technical support. Epiroc benefits from long-term relationships with major mining and construction companies, which ensures a steady demand for its products and services. Additionally, the company leverages strategic partnerships and joint ventures to expand its market reach and enhance its technological capabilities, further driving its earnings.

Epiroc AB Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q4-2024)
|
% Change Since: -6.75%|
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 robust financial health with notable revenue growth, strong profit margins, and effective cash flow management. However, the increase in debt levels necessitates careful monitoring.
Income Statement
85
Very Positive
Epiroc AB has shown impressive revenue growth over the years, with a notable increase in total revenue from 2020 to the TTM period. The gross profit margin remains strong, indicating effective cost management. The net profit margin has also improved, reflecting enhanced profitability. The EBIT and EBITDA margins are robust, highlighting operational efficiency in generating earnings before interest, taxes, and depreciation. Overall, the income statement reflects a healthy upward trajectory in revenue and profitability.
Balance Sheet
78
Positive
The balance sheet of Epiroc AB demonstrates a solid equity position with a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio is manageable, indicating a balanced approach to leveraging debt for growth. Return on equity has been consistently strong, showing the company's ability to generate returns on shareholder investments. However, the increase in total debt over the years should be monitored as a potential risk if it continues to outpace equity growth.
Cash Flow
80
Positive
Epiroc AB exhibits strong cash flow management with positive free cash flow across the periods. The operating cash flow to net income ratio indicates efficient cash generation from operations relative to net income. The free cash flow to net income ratio is also favorable, suggesting effective capital expenditure management. The free cash flow growth rate shows positive trends, supporting reinvestment and debt servicing capabilities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.60B60.34B49.69B39.65B36.12B
Gross Profit22.95B23.15B19.02B15.45B13.70B
EBITDA15.47B15.69B13.25B10.92B9.08B
Net Income8.73B9.43B8.40B7.06B5.40B
Balance Sheet
Total Assets83.59B67.78B61.78B48.58B43.89B
Cash, Cash Equivalents and Short-Term Investments7.18B6.40B7.33B10.79B15.05B
Total Debt21.57B13.97B10.74B9.18B10.06B
Total Liabilities40.41B30.57B28.27B22.80B20.15B
Stockholders Equity42.76B36.82B33.02B25.73B23.69B
Cash Flow
Free Cash Flow8.60B5.46B4.54B6.68B7.33B
Operating Cash Flow10.46B7.14B5.56B7.61B8.33B
Investing Cash Flow-11.69B-5.24B-5.99B-3.47B-608.00M
Financing Cash Flow1.90B-2.64B-3.23B-8.44B-990.00M

Epiroc AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price205.90
Price Trends
50DMA
213.48
Negative
100DMA
207.91
Negative
200DMA
205.79
Positive
Market Momentum
MACD
-1.11
Positive
RSI
44.37
Neutral
STOCH
20.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPI.A, the sentiment is Negative. The current price of 205.9 is below the 20-day moving average (MA) of 210.92, below the 50-day MA of 213.48, and above the 200-day MA of 205.79, indicating a neutral trend. The MACD of -1.11 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
68
Neutral
kr239.81B27.71
1.84%3.92%4.96%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
kr714.59B23.5628.28%2.10%
kr714.84B26.6028.28%1.89%
kr304.19B20.8216.41%2.35%
kr582.70B15.2022.62%2.81%
kr582.70B15.2922.62%<0.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:EPI.A
Epiroc AB
206.60
12.15
6.25%
GB:0XXV
Atlas Copco AB
135.84
-18.74
-12.12%
GB:0XXT
Atlas Copco AB
153.30
-24.24
-13.65%
GB:0HC0
Sandvik AB
242.60
33.45
15.99%
GB:0MHW
Volvo AB
288.23
30.40
11.79%
GB:0HTP
Volvo AB
287.93
36.07
14.32%
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: Jul 19, 2025