Sandvik AB (SAND) AI Stock Analysis

• Market Cap: kr275.21B
• Dividend Yield: 25.87%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.37
• Revenue Growth: -1.09%
• EPS Growth: 15.72%
• Country: SE
• Employees: 41,400
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 2.97
• Shares Outstanding: 1,254,385,900
• 10 Day Avg. Volume: 1,870,448
• 30 Day Avg. Volume: 1,902,539
• PEG Ratio: 2.53
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.82
• 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: kr218.18
• Price Target Upside: -0.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: kr239.00 ▲(8.93%Upside)

Sandvik AB's overall stock score is primarily driven by its strong financial performance, characterized by solid revenue metrics, a healthy balance sheet, and robust cash flow generation. Technical analysis indicates moderate positive momentum, while the valuation shows a reasonable P/E ratio and a high dividend yield. The absence of recent earnings call guidance or notable corporate events does not impact the assessment.

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 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 shows strong financial performance with robust revenue and profit margins, a solid balance sheet with zero debt, and strong cash flow generation. The slight decline in revenue growth is a potential 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	123.18B	122.88B	126.50B	112.33B	99.11B	86.40B
Gross Profit	50.60B	49.14B	52.05B	45.37B	40.17B	32.24B
EBITDA	30.08B	26.99B	29.75B	25.86B	23.72B	17.88B
Net Income	14.73B	12.24B	15.30B	11.21B	14.46B	8.73B
Balance Sheet
Total Assets	175.47B	184.38B	174.21B	176.68B	155.52B	119.13B
Cash, Cash Equivalents and Short-Term Investments	4.96B	4.53B	4.36B	10.49B	13.59B	23.75B
Total Debt	0.00	42.76B	45.08B	52.06B	34.35B	17.89B
Total Liabilities	82.52B	87.39B	86.51B	95.41B	78.19B	54.05B
Stockholders Equity	92.87B	96.92B	87.63B	81.23B	77.20B	65.08B
Cash Flow
Free Cash Flow	13.63B	15.77B	13.44B	5.93B	9.60B	12.15B
Operating Cash Flow	18.61B	20.61B	18.80B	10.46B	13.18B	15.35B
Investing Cash Flow	-8.92B	-7.67B	-8.51B	-20.30B	-26.19B	-4.78B
Financing Cash Flow	-8.07B	-12.99B	-16.21B	6.22B	2.49B	-3.31B

Sandvik AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 219.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 219.4 is above the 20-day moving average (MA) of 212.14, above the 50-day MA of 205.89, and above the 200-day MA of 208.36, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 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
SAND	76 Outperform	kr275.21B	18.68	15.81%	25.87%	-1.09%	15.72%
Sector *	58 Neutral	$1.33B	4.26	-2.93%	9.53%	3.41%	-51.76%
0NNF		kr165.62B	21.34	18.80%	20.98%	―	―
0XXV		kr722.72B	22.39	27.15%	22.22%	―	―
0XXT		kr699.66B	25.01	27.15%	18.94%	―	―
0NWX		kr96.24B	15.11	11.14%	3.67%	―	―
0NL3		kr83.64B	22.63	9.02%	20.74%	―	―