Sandvik AB (SAND) AI Stock Analysis

• Market Cap: kr356.62B
• Dividend Yield: 1.95%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.44
• Revenue Growth: -1.77%
• EPS Growth: 21.13%
• Country: SE
• Employees: 41,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.82
• Shares Outstanding: 1,254,385,900
• 10 Day Avg. Volume: 2,008,417
• 30 Day Avg. Volume: 2,089,933
• PEG Ratio: -1.02
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 15.78
• 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: kr307.78
• Price Target Upside: 4.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: kr315.00 ▲(6.74% Upside)

Sandvik AB's overall stock score is driven by its strong financial performance and positive technical indicators. The company's profitability and operational efficiency are commendable, but the high valuation and challenges in revenue and cash flow growth are concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Balance Sheet Health

A strong balance sheet with zero debt-to-equity ratio indicates financial stability and reduced leverage risk, supporting long-term growth.

Cash Flow Generation

Robust cash flow generation highlights effective capital management, ensuring the company can fund operations and investments sustainably.

Profitability

Strong profit margins reflect efficient cost management and operational efficiency, supporting sustained profitability and competitive advantage.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate market challenges or reduced demand, potentially impacting future earnings if not addressed.

Asset Reduction

Reduction in assets could signal strategic shifts that may affect operational capacity or market presence if not managed carefully.

Revenue Growth Concerns

Consistent revenue growth is crucial for long-term success; any decline needs monitoring to prevent potential negative impacts on market position.

Sandvik AB Business Overview & Revenue Model

Company Description

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally. The company offers mining and rock solutions, including drill rigs, underground loaders and trucks, rock drills and other tools, and parts and services, as well as digital and sustainability solutions; and rock processing applications, which include crushing, screening, feeding, breaking, demolition, and recycling. It also provides manufacturing solutions, comprising traditional metal cutting under the Sandvik Coromant, Walter, Wolfram, Seco, and Dormer Pramet brands; and manufactures tools and tooling systems for advanced metal cutting. In addition, the company develops and manufactures advanced stainless steels, powder-based alloys, and special alloys. It serves aerospace, automotive, construction, mining, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries. The company was founded in 1862 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Sandvik generates revenue through several key streams. The primary revenue stream comes from the sale of machinery and equipment in the Mining and Rock Solutions segment, which includes drilling rigs, crushers, and loaders. The Manufacturing and Machining Solutions segment contributes significantly through the sale of cutting tools, tool systems, and software for manufacturing processes. Additionally, Sandvik's Materials Technology division provides high-performance materials and components that serve various specialized industries. The company also benefits from a strong aftermarket business, providing maintenance services, spare parts, and technical support, which creates a recurring revenue model. Strategic partnerships with other companies and investments in research and development also enhance its competitive edge and contribute to long-term earnings growth.

Sandvik AB Financial Statement Overview

Summary

Sandvik AB exhibits strong financial health with robust revenue and profitability metrics, a solid balance sheet with zero debt-to-equity ratio, and strong cash flow generation. The slight revenue decline from 2023 to 2024 is a minor concern.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.37B	122.88B	126.50B	112.33B	99.11B	86.40B
Gross Profit	49.05B	49.14B	52.05B	45.37B	40.17B	32.24B
EBITDA	29.05B	26.99B	30.06B	25.86B	23.72B	17.88B
Net Income	14.79B	12.24B	15.30B	11.21B	14.46B	8.73B
Balance Sheet
Total Assets	171.91B	184.38B	174.21B	176.68B	155.52B	119.13B
Cash, Cash Equivalents and Short-Term Investments	3.44B	4.53B	4.36B	10.49B	13.59B	23.75B
Total Debt	46.03B	42.76B	45.08B	52.06B	34.35B	17.89B
Total Liabilities	81.06B	87.39B	86.51B	95.41B	78.19B	54.05B
Stockholders Equity	90.78B	96.92B	87.63B	81.23B	77.20B	65.08B
Cash Flow
Free Cash Flow	15.78B	15.77B	13.44B	5.93B	9.60B	12.15B
Operating Cash Flow	20.02B	20.61B	18.80B	10.46B	13.18B	15.35B
Investing Cash Flow	-7.12B	-7.67B	-8.51B	-20.30B	-26.19B	-4.78B
Financing Cash Flow	-13.16B	-12.99B	-16.21B	6.22B	2.49B	-3.31B

Sandvik AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 295.10
• 50DMA: Positive
• 100DMA: Positive
• 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:SAND, the sentiment is Positive. The current price of 295.1 is above the 20-day moving average (MA) of 288.46, above the 50-day MA of 284.83, and above the 200-day MA of 239.98, indicating a bullish trend. The MACD of 2.37 indicates Positive momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SAND.

Sandvik AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TREL.B	73 Outperform	kr83.83B	23.63	9.56%	1.94%	2.73%	7.56%
BEIJ.B	72 Outperform	kr73.78B	30.09	11.04%	0.96%	9.08%	-3.36%
ALFA	71 Outperform	kr185.50B	22.24	20.42%	1.86%	3.54%	20.94%
ATCO.B	71 Outperform	kr754.15B	25.41	26.43%	2.08%	-2.38%	-4.00%
SAND	70 Outperform	kr356.62B	24.12	16.39%	1.95%	-1.77%	21.13%
ATCO.A	67 Neutral	kr754.15B	28.26	26.43%	1.87%	-2.38%	-4.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sandvik AB Corporate Events

Sandvik Secures EUR 500 Million EIB Loan for R&D

Sandvik AB has secured a EUR 500 million loan from the European Investment Bank to support its research and development initiatives until 2030. This funding aims to advance Sandvik’s development of new, advanced, productive, safe, and sustainable solutions, reinforcing its strategic focus on technology leadership and enhancing productivity, safety, and sustainability for its customers.

Sandvik Expands Digital Manufacturing with QTE Acquisition

Sandvik has acquired QTE Manufacturing Solutions, a US-based reseller of CAM solutions within the Mastercam network, to bolster its digital manufacturing growth strategy. This acquisition will enhance Sandvik’s regional presence in the Midwest US and strengthen its direct sales channel for software solutions, although it will have a limited impact on the company’s EBITA margin and earnings per share.

Sandvik AB Reports Mixed Q3 2025 Results with Strong Order Intake

Sandvik AB reported a mixed financial performance for the third quarter of 2025, with a 7% increase in total order intake but a 4% decrease in revenues compared to the previous year. Despite the revenue decline, the company achieved a 16% organic growth in order intake and a 5% organic revenue growth at fixed exchange rates. The company continues to focus on strategic growth areas, such as battery electric vehicles and digital solutions, which have shown strong demand and contributed to the overall performance. Sandvik’s strategic initiatives and decentralized organization have allowed it to maintain resilient margins and strong cash flow generation, despite challenges in the global economic landscape.

Sandvik AB to Announce Q3 2025 Results with Investor Presentation

Sandvik AB is set to release its third-quarter results for 2025 on October 20, with a webcast and conference call scheduled for investors and analysts. The presentation will be led by President and CEO Stefan Widing and CFO Cecilia Felton, indicating the company’s commitment to transparency and engagement with stakeholders.

Sandvik Secures Major Mining Equipment Order from Zimplats

Sandvik has secured a significant order from Zimplats, Zimbabwe’s largest platinum group metals producer, for underground mining equipment at the Ngezi mines complex. Valued at approximately SEK 280 million, the order includes loaders, trucks, and drills, with deliveries starting in the third quarter of 2025. This deal not only underscores Sandvik’s commitment to supporting productivity, safety, and sustainability in mining operations but also highlights the ongoing expansion of underground mining capacity at Ngezi, reflecting a strategic investment by Zimplats.