tiprankstipranks
Trending News
More News >
Sandvik AB (UK) (SE:SAND)
:SAND

Sandvik AB (SAND) AI Stock Analysis

Compare
0 Followers

Top Page

SE

Sandvik AB

(LSE:SAND)

Rating:77Outperform
Price Target:
kr237.00
â–²(10.85%Upside)
Sandvik AB's strong financial performance and solid technical indicators contribute positively to the stock score. The valuation is reasonable, supporting a stable outlook. The absence of recent earnings call data and corporate events limits additional insights.

Sandvik AB (SAND) vs. iShares MSCI Sweden ETF (EWD)

Sandvik AB Business Overview & Revenue Model

Company DescriptionSandvik AB is a global engineering company specializing in high-tech manufacturing solutions. The company operates in three main sectors: Sandvik Mining and Rock Technology, Sandvik Machining Solutions, and Sandvik Materials Technology. It provides equipment and tools for the mining and construction industries, advanced stainless steels and special alloys, as well as products and solutions for metal cutting. Sandvik is headquartered in Sweden and serves customers worldwide with a focus on innovation and sustainability.
How the Company Makes MoneySandvik AB generates revenue through the sale of its products and solutions across its three main business sectors. In the Sandvik Mining and Rock Technology sector, the company earns money by providing equipment, tools, and service solutions for mining and construction industries, including rock drills, crushers, and automation systems. Sandvik Machining Solutions contributes to revenue by offering tools and tooling systems for industrial metal cutting, catering to a broad range of industries such as automotive, aerospace, and energy. The Sandvik Materials Technology sector generates income through the production and sale of advanced stainless steels, special alloys, and titanium, which are used in demanding environments like the chemical and oil and gas industries. Additionally, Sandvik's revenue is bolstered by its focus on innovation, customer service, and strategic partnerships, which help in expanding its market presence and enhancing its product offerings.

Sandvik AB Financial Statement Overview

Summary
Sandvik AB is in a strong financial position, with solid revenue and profitability metrics, a strong balance sheet with reduced leverage, and robust cash flow generation. Despite a slight revenue decline from 2023 to 2024, the company demonstrates efficient cost management and operational efficiency.
Income Statement
85
Very Positive
Sandvik AB has demonstrated strong financial performance with a consistent increase in total revenue over the years, highlighted by a TTM (Trailing-Twelve-Months) revenue of 123.18 billion SEK. The gross profit margin has remained healthy at around 41%, reflecting efficient cost management. The TTM net profit margin is robust at 11.96%, with EBIT and EBITDA margins further indicating strong operational efficiency. Revenue growth has been steady, though there was a slight decline from 2023 to 2024, which could be an area of concern if it continues.
Balance Sheet
78
Positive
Sandvik's balance sheet shows a solid equity position with a total equity of 92.87 billion SEK in the latest TTM period, resulting in a commendable equity ratio of 52.93%. The company has significantly reduced its debt, with a debt-to-equity ratio now at zero, indicating financial prudence and reduced leverage risk. However, the decrease in total assets may point to divestitures or other strategic realignments that need to be monitored.
Cash Flow
83
Very Positive
The cash flow statement reveals strong operational cash flow generation, with a TTM operating cash flow of 18.61 billion SEK. The free cash flow has grown significantly, showcasing effective capital management and investment strategies. The operating cash flow to net income and free cash flow to net income ratios are healthy, suggesting efficient conversion of profits into cash.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
123.18B122.88B126.50B112.33B99.11B86.40B
Gross Profit
50.60B49.14B52.05B45.37B40.17B32.24B
EBIT
21.62B18.42B22.42B18.59B18.94B11.22B
EBITDA
30.08B26.99B29.75B25.86B23.72B17.88B
Net Income Common Stockholders
14.73B12.24B15.30B11.21B14.46B8.73B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.96B4.53B4.36B10.49B13.59B23.75B
Total Assets
175.47B184.38B174.21B176.68B155.52B119.13B
Total Debt
0.0042.76B45.08B52.06B34.35B17.89B
Net Debt
-4.96B38.23B40.72B41.57B20.77B-5.87B
Total Liabilities
82.52B87.39B86.51B95.41B78.19B54.05B
Stockholders Equity
92.87B96.92B87.63B81.23B77.20B65.08B
Cash FlowFree Cash Flow
13.63B15.77B13.44B5.93B9.60B12.15B
Operating Cash Flow
18.61B20.61B18.80B10.46B13.18B15.35B
Investing Cash Flow
-8.92B-7.67B-8.51B-20.30B-26.19B-4.78B
Financing Cash Flow
-8.07B-12.99B-16.21B6.22B2.49B-3.31B

Sandvik AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price213.80
Price Trends
50DMA
201.71
Positive
100DMA
211.64
Positive
200DMA
207.74
Positive
Market Momentum
MACD
2.13
Positive
RSI
58.92
Neutral
STOCH
80.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SAND, the sentiment is Positive. The current price of 213.8 is above the 20-day moving average (MA) of 211.49, above the 50-day MA of 201.71, and above the 200-day MA of 207.74, indicating a bullish trend. The MACD of 2.13 indicates Positive momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SAND.

Sandvik AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
kr171.24B22.2418.80%2.04%6.40%18.28%
78
Outperform
kr737.87B23.0827.15%2.10%0.54%1.79%
77
Outperform
kr268.19B18.2015.81%2.69%-1.09%15.72%
77
Outperform
kr97.49B15.2811.14%3.63%-3.96%2.77%
72
Outperform
kr737.87B26.3327.15%1.85%0.54%1.79%
66
Neutral
kr81.58B22.409.02%2.12%2.94%-59.33%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SAND
Sandvik AB
213.80
-1.60
-0.74%
SE:ALFA
Alfa Laval AB
414.30
-55.52
-11.82%
SE:ATCO.A
Atlas Copco AB
157.80
-42.28
-21.13%
SE:ATCO.B
Atlas Copco AB
138.35
-33.58
-19.53%
SE:SKF.B
SKF AB
214.10
-3.25
-1.50%
SE:TREL.B
Trelleborg AB
352.70
-56.88
-13.89%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.