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Sandvik AB
(OTC:SDVKY)
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Rating:68Neutral
Price Target:
$44.00
â–²(6.36% Upside)
Action:Reiterated
Date:07/23/26
The score is supported primarily by solid financial performance (healthy profitability/ROE with manageable leverage) and a strong earnings-call backdrop (record results and robust demand indicators). Offsetting factors are weak technical momentum (below key moving averages with negative MACD) and a somewhat rich valuation (P/E ~26 with a modest ~1.78% dividend yield).
Positive Factors
Broad-based revenue and order growth
Sustained organic growth in both orders and revenue indicates broad customer demand rather than a single isolated contract or market boost. The five-quarter order trend and book-to-bill above 100% support continued activity, capacity utilization, and revenue visibility over the coming quarters.
Negative Factors
Volatile cash conversion
Weak quarterly cash conversion shows that reported earnings do not always translate promptly into cash, particularly when invoicing and working capital rise. Although the longer-term conversion rate is stronger, recurring swings can reduce funding flexibility, complicate capital allocation, and make cash generation more sensitive to the industrial cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue and order growth
Sustained organic growth in both orders and revenue indicates broad customer demand rather than a single isolated contract or market boost. The five-quarter order trend and book-to-bill above 100% support continued activity, capacity utilization, and revenue visibility over the coming quarters.
Read all positive factors
Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.05B
Dividend Yield1.57%
Average Volume (3M)34.88K
Price to Earnings (P/E)29.0
Beta (1Y)1.24
Revenue Growth17.89%
EPS Growth29.42%
CountryUS
Employees41,801
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)13.39
Shares Outstanding1,254,386,000
10 Day Avg. Volume20,692
30 Day Avg. Volume34,884
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)4.03
Price to Sales (P/S)3.31
P/FCF Ratio24.82
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.75
Revenue Forecast (FY)$15.06B
Sandvik AB Business Overview & Revenue Model
Company Description
Sandvik AB (publ), a global engineering powerhouse headquartered in Stockholm, Sweden, has been a key player since its establishment in 1862. The company's diverse operations are primarily focused on four critical areas: solutions for mining and r...
How the Company Makes Money
Sandvik primarily makes money by selling engineered products and by providing recurring aftermarket services tied to those products. A major revenue stream comes from Mining and Rock Solutions, which generates sales from mining and rock excavation...
Sandvik AB Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based financial and operational momentum with record revenues, record profits, robust order intake and meaningful product and strategic progress (notably the Diemme Filtration acquisition and AutoMine Aura). Key positives include significant margin expansion, strong machining profitability (notwithstanding a temporary powder timing effect), durable aftermarket strength in mining, solid 12-month cash conversion and disciplined capital metrics. Main challenges highlighted were temporary cash conversion weakness this quarter, one-off impacts in mining (litigation and a mine closure), currency dilution across businesses, and complexity/uncertainty from tungsten/powder price timing and customer pre-buys which complicate short-term modeling. Overall, positives materially outweigh manageable lowlights.Positive Updates
Record revenues and strong top-line growth
Total order intake SEK 37.8 billion (up 17% organic) and revenues SEK 36.8 billion (up 24% reported, 23% organic); book-to-bill 103% and order intake up double-digits for five consecutive quarters.
Negative Updates
Quarterly cash conversion below seasonal norm
Quarterly free operating cash flow conversion 46% described as 'on the lower side' and driven by significantly higher invoicing and working capital build in the quarter (despite 12-month rolling conversion at 80%).
Read all updates
Q2-2026 Updates
Positive
Negative
Record revenues and strong top-line growth
Total order intake SEK 37.8 billion (up 17% organic) and revenues SEK 36.8 billion (up 24% reported, 23% organic); book-to-bill 103% and order intake up double-digits for five consecutive quarters.
Read all positive updates
Company Guidance
Management guided that Q3 should see a roughly SEK 0.2bn positive currency effect and an additional ~SEK 0.2bn timing benefit from the tungsten/powder dynamics; for the full year they left guidance unchanged for CapEx (YTD SEK 1.8bn), interest net (YTD SEK 0.3bn) and the normalized tax rate (YTD ~24.1–24.2%, within the guided range). They reminded investors the Q2 tungsten timing/price effect was ~SEK 550m (≈380 bps in machining, ~150 bps at group level) and expect that temporary benefit to subside to about SEK 200m in Q3; Q2 cash conversion was 46% (12‑month rolling ~80%), net debt ~SEK 37bn (net debt/EBITDA ~1x), and longer‑term segment ambitions (e.g., aftermarket high single‑digit organic growth) remain intact.Sandvik AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 128.69B | 113.44B | 122.88B | 126.50B | 112.33B | 99.11B |
| Gross Profit | 51.91B | 46.06B | 49.14B | 52.05B | 45.37B | 40.17B |
| EBITDA | 30.76B | 27.13B | 26.99B | 30.68B | 25.80B | 23.65B |
| Net Income | 15.97B | 13.81B | 12.24B | 15.30B | 11.21B | 14.46B |
Balance Sheet | ||||||
| Total Assets | 186.88B | 169.86B | 184.38B | 174.21B | 176.68B | 155.52B |
| Cash, Cash Equivalents and Short-Term Investments | 3.62B | 4.96B | 4.53B | 4.36B | 10.49B | 13.59B |
| Total Debt | 43.01B | 37.12B | 42.76B | 45.08B | 52.06B | 34.35B |
| Total Liabilities | 86.39B | 76.62B | 87.39B | 86.51B | 95.41B | 78.19B |
| Stockholders Equity | 100.42B | 93.17B | 96.92B | 87.63B | 81.23B | 77.20B |
Cash Flow | ||||||
| Free Cash Flow | 16.92B | 15.12B | 15.77B | 13.44B | 5.93B | 9.60B |
| Operating Cash Flow | 20.58B | 18.72B | 20.61B | 18.80B | 10.46B | 13.18B |
| Investing Cash Flow | -5.32B | -6.66B | -7.67B | -8.51B | -20.30B | -26.19B |
| Financing Cash Flow | -15.25B | -11.19B | -12.99B | -16.21B | 6.22B | 2.49B |
Sandvik AB Technical Analysis
Positive
41.37
Price Trends
38.79
Positive
39.81
Positive
38.08
Positive
Market Momentum
0.47
Negative
57.66
Neutral
37.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDVKY, the sentiment is Positive. The current price of 41.37 is above the 20-day moving average (MA) of 39.40, above the 50-day MA of 38.79, and above the 200-day MA of 38.08, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDVKY.
Sandvik AB Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.93B | 24.45 | 101.74% | 2.38% | 4.30% | -3.22% | |
79 Outperform | $121.33B | 33.31 | 25.11% | 0.79% | 8.31% | 4.96% | |
76 Outperform | $85.24B | 33.29 | 12.69% | 1.45% | 4.82% | -1.66% | |
68 Neutral | $51.05B | 29.05 | 17.52% | 1.57% | 17.89% | 29.42% | |
64 Neutral | $7.23B | 31.77 | 4.30% | 1.08% | 29.17% | -27.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $1.02B | 51.42 | 2.88% | 1.18% | 18.70% | -57.51% |
* Industrials Sector Average
SDVKY
Sandvik AB
40.76
14.60
55.82%
ASTE
Astec
44.22
-2.28
-4.90%
EMR
Emerson Electric Company
152.82
22.14
16.94%
ITW
Illinois Tool Works
270.12
10.01
3.85%
PH
Parker Hannifin
962.59
208.69
27.68%
TEX
Terex
63.23
11.15
21.41%
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.