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Atlas Copco (ATLKY)
:ATLKY
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Atlas Copco
(OTC:ATLKY)
74Outperform
Atlas Copco (ATLKY) vs. S&P 500 (SPY)
Market Cap
$78.87B
Dividend Yield0.98%
Average Volume (3M)354.88K
Price to Earnings (P/E)30.1
Beta (1Y)1.27
Revenue Growth0.18%
EPS Growth1.44%
CountryUS
Employees55,248
SectorIndustrials
Sector Strength91
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.14
Shares Outstanding3,357,576,400
10 Day Avg. Volume263,283
30 Day Avg. Volume354,878
Financial Highlights & Ratios
PEG Ratio-12.84
Price to Book (P/B)6.66
Price to Sales (P/S)0.00
P/FCF Ratio23.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Atlas Copco Business Overview & Revenue Model
Company DescriptionAtlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.
How the Company Makes MoneyAtlas Copco makes money primarily through the manufacturing and sale of its diverse range of industrial products and services. The company's revenue model is based on four main business areas: Compressor Technique, which provides industrial compressors, gas and process compressors, and air and gas treatment equipment; Vacuum Technique, which offers vacuum solutions for industries such as semiconductor and scientific instrumentation; Industrial Technique, focusing on industrial power tools and assembly systems; and Power Technique, which supplies portable compressors, pumps, and generators. A significant portion of Atlas Copco's earnings also comes from its aftermarket services, including maintenance, repair, and spare parts, which ensure long-term customer relationships and recurring revenue. Additionally, the company engages in strategic partnerships and acquisitions to expand its market presence and technological capabilities, further contributing to its revenue streams.
Atlas Copco Financial Statement Overview
Summary
Atlas Copco exhibits a commendable financial profile characterized by consistent revenue growth, strong profitability margins, a debt-free balance sheet, and excellent cash flow generation. The company's financial health is solid, with efficient operations and a stable capital structure, positioning it well for future growth and resilience against potential economic fluctuations.Income Statement
Atlas Copco demonstrates strong income statement performance with consistent revenue growth, achieving a notable 24.95% increase from 2022 to 2023. The company also maintains robust profitability, evidenced by a solid gross profit margin and a net profit margin of 16.85% for 2023. Additionally, the EBIT and EBITDA margins are healthy, indicating efficient operations.85
Very Positive
Balance Sheet
The balance sheet reflects a strong financial position with zero total debt in 2023, resulting in a very low debt-to-equity ratio. The company also enjoys a high equity ratio of 54.52%, suggesting a stable capital structure. Furthermore, the return on equity (ROE) is impressive at 26.19%, indicating effective use of shareholder funds.90
Very Positive
Cash Flow
Atlas Copco's cash flow statement highlights excellent cash generation capabilities, with a significant free cash flow growth rate of 36.37% from 2022 to 2023. The operating cash flow to net income ratio is robust, indicating strong cash conversion efficiency. Additionally, the free cash flow to net income ratio underscores solid cash profitability.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 176.63B | 176.77B | 172.66B | 141.32B | 110.91B | 99.79B | Gross Profit |
| 75.45B | 75.74B | 75.12B | 59.38B | 46.53B | 41.18B | EBIT |
| 37.30B | 38.17B | 37.09B | 30.22B | 23.56B | 19.15B | EBITDA |
| 45.49B | 47.50B | 44.85B | 36.82B | 29.27B | 24.41B | Net Income Common Stockholders |
| 29.21B | 29.78B | 28.04B | 23.48B | 18.13B | 14.78B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 21.97B | 19.33B | 11.22B | 11.85B | 19.58B | 11.65B | Total Assets |
| 199.05B | 208.54B | 182.68B | 172.30B | 136.68B | 113.37B | Total Debt |
| 0.00 | 0.00 | 32.71B | 36.30B | 24.85B | 24.63B | Net Debt |
| -21.40B | 15.74B | 21.82B | 25.05B | 5.86B | 12.97B | Total Liabilities |
| 88.36B | 94.78B | 91.18B | 92.28B | 69.05B | 59.83B | Stockholders Equity |
| 110.63B | 113.70B | 91.45B | 79.98B | 67.63B | 53.22B |
| Cash Flow | Free Cash Flow | ||||
| 30.88B | 30.86B | 22.63B | 16.35B | 19.79B | 19.41B | Operating Cash Flow |
| 38.24B | 36.89B | 28.08B | 21.38B | 23.15B | 22.20B | Investing Cash Flow |
| -13.78B | -13.32B | -9.39B | -15.50B | -6.12B | -16.29B | Financing Cash Flow |
| -17.55B | -15.86B | -18.28B | -14.65B | -10.32B | -8.55B |
Atlas Copco Technical Analysis
Positive
16.97
Price Trends
16.12
Positive
16.36
Positive
16.75
Positive
Market Momentum
0.25
Negative
62.58
Neutral
92.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLKY, the sentiment is Positive. The current price of 16.97 is above the 20-day moving average (MA) of 15.90, above the 50-day MA of 16.12, and above the 200-day MA of 16.75, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATLKY.
Atlas Copco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $128.77B | 33.22 | 20.84% | 1.17% | 7.00% | 16.84% | |
78 Outperform | $73.64B | 22.12 | 107.62% | 2.35% | -1.85% | 12.04% | |
78 Outperform | $62.67B | 42.04 | 8.09% | 0.54% | 13.34% | 1.98% | |
76 Outperform | $86.94B | 26.19 | 27.16% | 0.96% | -0.23% | 22.41% | |
74 Outperform | $78.87B | 30.13 | 26.41% | 0.98% | 0.18% | 1.44% | |
73 Outperform | $67.84B | 28.79 | 9.82% | 1.75% | 6.49% | 24.14% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% |
* Industrials Sector Average
Performance Comparison
ATLKY
Atlas Copco
16.97
-1.61
-8.67%
ETN
Eaton
329.07
0.22
0.07%
EMR
Emerson Electric Company
120.61
8.91
7.98%
ITW
Illinois Tool Works
251.34
6.60
2.70%
PH
Parker Hannifin
680.40
138.02
25.45%
ROP
Roper Technologies
582.88
39.65
7.30%
Atlas Copco Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 5.21%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong order intake and regional growth, but was overshadowed by declines in organic revenue, operating profit, and challenges in key business segments. The uncertain economic environment also contributed to a cautious outlook.Q1-2025 Updates
Positive Updates
Record Orders Received
Orders received reached SEK 46.6 billion, marking the second-best quarter ever, only behind Q1 2023.
Strong Regional Growth
South America and Africa and Middle East showed strong performances with 22% and 18% growth respectively.
Compressor Technique Growth
Compressor Technique saw a 3% organic growth, driven by significant development in Gas and Process compressors.
Solid Cash Flow Management
Despite lower revenues, cash flow remained solid, supported by reduced inventory levels.
10 Acquisitions Completed
The company completed 10 acquisitions in the quarter, supporting structural growth.
Negative Updates
Decline in Organic Revenue
Overall, the company experienced a 2% decline in organic growth, with negative impacts in three out of four business areas.
Lower Operating Profit
Operating profit decreased due to negative revenue volumes and mix issues.
Vacuum Technique Challenges
Vacuum Technique had a 5% revenue decline, prompting reorganization efforts.
Industrial Technique Decline
Order development for Industrial Technique was down 8% organically, mainly due to challenges in the automotive sector.
Power Technique Struggles
Power Technique saw a decline in equipment orders, particularly from rental companies in the U.S. and Europe.
Uncertain Outlook
The company expects customer activity levels to weaken due to global economic uncertainties.
Company Guidance
During the call, Atlas Copco provided detailed guidance on their Q1 2025 performance, highlighting significant metrics and developments. The company reported strong orders received, with an overall order level of SEK 46.6 billion, marking it as the second-best quarter ever, slightly behind Q1 2023. However, revenues saw an organic decline of 2%. Compressor Technique experienced a 3% organic growth, driven by Gas and Process compressors, which constituted 15% of the business orders. Vacuum Technique had a 1% organic growth despite challenges in the semiconductor sector. In regional terms, South America and Africa and the Middle East saw significant growth, with 22% and 18% respectively. Meanwhile, Europe faced challenges with flat development in Compressor Technique and negative growth in Vacuum Technique, Power Technique, and Industrial Technique. The financial metrics included a profit before tax of SEK 8.47 billion and an effective tax rate of 22.1%. The company also completed 10 acquisitions in the quarter, further influencing their financial structure. Despite lower revenues and profits, the cash flow remained solid due to reductions in inventory levels. Looking ahead, Atlas Copco anticipates a somewhat weakened customer activity level due to ongoing market uncertainties.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.