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Epiroc AB (SE:EPI.A)
:EPI.A
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Epiroc AB
(EPI.A)
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Rating:66Neutral
Price Target:
kr218.00
▲(7.71% Upside)
Epiroc AB's overall stock score is driven by strong financial performance, particularly in profitability and operational efficiency, despite challenges in revenue growth. Technical analysis indicates moderate short-term momentum, while valuation metrics suggest the stock is fairly priced with limited income potential. The absence of earnings call and corporate events data means these factors did not influence the score.
Epiroc AB (EPI.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr231.80B
Dividend Yield1.91%
Average Volume (3M)1.27M
Price to Earnings (P/E)26.7
Beta (1Y)1.18
Revenue Growth3.92%
EPS Growth4.96%
CountrySE
Employees19,042
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.83
Shares Outstanding823,765,800
10 Day Avg. Volume1,561,320
30 Day Avg. Volume1,271,894
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
kr213.13Price Target Upside5.30% 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
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.68
Positive
| 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
Positive
202.40
Price Trends
198.87
Positive
206.01
Negative
204.50
Negative
Market Momentum
-0.29
Positive
55.63
Neutral
59.43
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 202.4 is above the 20-day moving average (MA) of 200.54, above the 50-day MA of 198.87, and below the 200-day MA of 204.50, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 55.63 is Neutral, neither overbought nor oversold. The STOCH value of 59.43 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | kr787.14B | 24.59 | 26.19% | 1.95% | -2.31% | -4.41% | |
71 Outperform | kr787.14B | 27.66 | 27.91% | 1.73% | -2.31% | -4.41% | |
66 Neutral | kr549.12B | 14.44 | 23.22% | 2.96% | -9.40% | -31.77% | |
66 Neutral | kr549.12B | 14.43 | 23.22% | 6.74% | -9.40% | -31.77% | |
66 Neutral | kr231.80B | 26.70 | ― | 1.91% | 3.92% | 4.96% | |
46 Neutral | kr669.22M | -2.39 | -21.51% | ― | 24.10% | -48.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SE:EPI.A
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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.