Epiroc AB (EPI.A) AI Stock Analysis

• Market Cap: kr239.81B
• Dividend Yield: 1.84%
• Average Volume (3M): 967.16K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.18
• Revenue Growth: 3.92%
• EPS Growth: 4.96%
• Country: SE
• Employees: 19,042
• Sector: Industrials
• Sector Strength: 94
• Industry: Agricultural - Machinery
• EPS (TTM): 1.82
• Shares Outstanding: 823,765,800
• 10 Day Avg. Volume: 1,105,326
• 30 Day Avg. Volume: 967,156
• PEG Ratio: 13.19
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.89
• 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: kr212.25
• Price Target Upside: 3.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• 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 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 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 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

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

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

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.

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

Epiroc AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 205.90
• 50DMA: Negative
• 100DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPI.A	68 Neutral	kr239.81B	27.71		1.84%	3.92%	4.96%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%
0XXV	―	kr714.59B	23.56	28.28%	2.10%	―	―
0XXT	―	kr714.84B	26.60	28.28%	1.89%	―	―
0HC0	―	kr304.19B	20.82	16.41%	2.35%	―	―
0MHW	―	kr582.70B	15.20	22.62%	2.81%	―	―
0HTP	―	kr582.70B	15.29	22.62%	<0.01%	―	―