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Atlas Copco
(OTC:ATLKY)
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Rating:68Neutral
Price Target:
$19.50
▼(-9.26% Downside)
Action:Downgraded
Date:10/24/26
The score is driven primarily by strong financial performance (durable margins, moderate leverage, strong free cash flow) and a constructive earnings-call outlook (record orders/revenue and positive demand commentary). These positives are tempered by very weak technical conditions (below key moving averages with negative MACD and oversold momentum) and a relatively high P/E despite a supportive dividend yield.
Positive Factors
Broad-based demand growth
Record orders and growth across every business area indicate broad customer demand rather than reliance on one division. This breadth supports revenue resilience through industrial cycles, while the substantial order pipeline can sustain activity and capacity utilization over the coming quarters.
Negative Factors
Uneven top-line and margin trend
Recent performance shows normalization after a stronger period, with slower revenue growth and modestly lower EBIT and net margins. If this pattern persists, it could limit operating leverage and reduce the pace at which Atlas Copco converts demand into earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based demand growth
Record orders and growth across every business area indicate broad customer demand rather than reliance on one division. This breadth supports revenue resilience through industrial cycles, while the substantial order pipeline can sustain activity and capacity utilization over the coming quarters.
Read all positive factors
Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.37B
Dividend Yield2.88%
Average Volume (3M)306.43K
Price to Earnings (P/E)32.4
Beta (1Y)1.34
Revenue Growth10.91%
EPS Growth8.12%
CountryUS
Employees56,413
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)5.66
Shares Outstanding3,357,576,400
10 Day Avg. Volume406,554
30 Day Avg. Volume306,425
Financial Highlights & Ratios
PEG Ratio-1.96
Price to Book (P/B)7.29
Price to Sales (P/S)5.08
P/FCF Ratio30.24
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda2.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.63
Revenue Forecast (FY)$18.62B
Atlas Copco Business Overview & Revenue Model
Company Description
Atlas Copco AB engages in the provision of sustainable productivity solutions. The firm offers compressors, vacuum solutions, generators, power tools, and assembly systems. It operates through the following segments: Compressor Technique, Vacuum T...
How the Company Makes Money
Atlas Copco makes money primarily by selling industrial equipment and by servicing and supporting that equipment over its lifecycle. Key revenue streams include: (1) Equipment sales: Revenue from the sale of compressors, air treatment and gas equi...
Atlas Copco Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management highlighted record orders and revenue, broad-based organic growth, strong Vacuum Technique and Power Technique performance, improved profitability, solid cash flow, successful acquisitions, and confidence in semiconductor and gas-and-process opportunities. These strengths outweighed the explicitly discussed challenges, including Industrial Technique restructuring, Compressor Technique margin pressure, supply-chain inflation, ramp-up costs, pricing constraints, European macro weakness, and uncertainty related to seasonality and preordering.Positive Updates
Record Orders and Revenue
Orders received reached a record SEK 52.3 billion, representing 25% organic growth and 29% total growth including 3% structural growth from acquisitions and currency support. Revenue reached a record SEK 47.9 billion, with 11% organic growth.
Negative Updates
Industrial Technique Restructuring and Lower Activity
Industrial Technique recorded a SEK 132 million one-time restructuring cost related to German product companies that were affected by low activity and lower volume. Reported profitability was 18.7%, below management's desired level, although the underlying margin was 20.6%.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Orders and Revenue
Orders received reached a record SEK 52.3 billion, representing 25% organic growth and 29% total growth including 3% structural growth from acquisitions and currency support. Revenue reached a record SEK 47.9 billion, with 11% organic growth.
Read all positive updates
Company Guidance
For the next quarter, the company’s forward-looking statement is sequential guidance referring to customer activity, excluding large orders, potential FX swings and seasonality; for most segments, “we believe the activity will remain at the current level,” while the semiconductor market remains “very positive” but the Q3-to-Q4 seasonality is hard to predict. The effective tax rate is expected to be “slightly higher,” “maybe somewhere around the lines of 22.5%”; net financial items are likely to be “on a similar level going forward next quarter”; and for Q4, the currency effect is expected to turn “slightly positive,” with “somewhere around SEK 0.5 billion” likely. Vacuum Technique should continue to see “some level of margin expansion,” but “not as much as we have seen in the past few quarters,” with “a little bit of caution around that margin expansion,” while Compressor Technique pricing actions remain “on the table,” although the company “cannot guarantee that next quarter is going to be changed.”Atlas Copco Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 167.49B | 158.24B | 176.77B | 172.66B | 141.32B | 110.91B |
| Gross Profit | 70.51B | 67.88B | 75.74B | 75.12B | 59.38B | 46.53B |
| EBITDA | 45.98B | 41.02B | 47.50B | 45.12B | 36.82B | 29.27B |
| Net Income | 27.77B | 24.83B | 29.78B | 28.04B | 23.48B | 18.13B |
Balance Sheet | ||||||
| Total Assets | 235.00B | 202.46B | 208.54B | 182.68B | 172.30B | 136.68B |
| Cash, Cash Equivalents and Short-Term Investments | 24.56B | 15.92B | 19.33B | 11.22B | 11.85B | 19.58B |
| Total Debt | 37.94B | 34.90B | 34.71B | 32.71B | 36.30B | 24.85B |
| Total Liabilities | 116.07B | 92.07B | 94.78B | 91.18B | 92.28B | 69.05B |
| Stockholders Equity | 118.71B | 110.21B | 113.70B | 91.45B | 79.98B | 67.63B |
Cash Flow | ||||||
| Free Cash Flow | 27.99B | 26.58B | 30.86B | 22.63B | 16.35B | 19.79B |
| Operating Cash Flow | 31.54B | 30.61B | 36.89B | 28.08B | 21.38B | 23.15B |
| Investing Cash Flow | -13.65B | -16.56B | -13.32B | -9.39B | -15.50B | -6.12B |
| Financing Cash Flow | -19.67B | -15.39B | -15.86B | -18.28B | -14.65B | -10.32B |
Atlas Copco Technical Analysis
Negative
21.49
Price Trends
20.40
Negative
20.38
Negative
19.87
Negative
Market Momentum
-0.55
Positive
43.09
Neutral
45.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLKY, the sentiment is Negative. The current price of 21.49 is above the 20-day moving average (MA) of 19.86, above the 50-day MA of 20.40, and above the 200-day MA of 19.87, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 45.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLKY.
Atlas Copco Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $31.06B | 22.42 | 13.53% | 0.10% | 7.96% | 161.68% | |
76 Outperform | $92.00B | 35.91 | 12.69% | 1.35% | 4.82% | -1.66% | |
76 Outperform | $79.16B | 24.80 | 103.39% | 2.35% | 4.80% | 8.78% | |
72 Outperform | $113.48B | 31.14 | 25.11% | 0.84% | 8.31% | 4.96% | |
68 Neutral | $87.37B | 32.43 | 24.21% | 2.83% | 10.91% | 8.12% | |
68 Neutral | $48.44B | 40.80 | 33.32% | 1.27% | 11.27% | 25.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ATLKY
Atlas Copco
19.09
2.56
15.51%
EMR
Emerson Electric Company
164.94
27.53
20.03%
ITW
Illinois Tool Works
278.55
40.71
17.12%
PH
Parker Hannifin
899.82
133.37
17.40%
ROK
Rockwell Automation
436.20
72.70
20.00%
IR
Ingersoll Rand
80.05
3.80
4.98%
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.