Sandvik AB (SDVKY) AI Stock Analysis

Sandvik AB

(Other OTC:SDVKY)

Select Model

Rating:68Neutral

Price Target:$37.00▲(1.36% Upside)

Action:reiterated

Date:10/23/26

The score is supported primarily by solid financial performance (strong margins and improving leverage) and a very constructive latest earnings-call read-through (strong orders, margins, and cash flow). Offsetting this, current technicals are clearly weak with price below major moving averages and negative momentum, while valuation is only moderately attractive given a ~26x P/E and a modest ~1.8% yield.

Positive Factors

Recurring aftermarket revenueA large installed base, aging customer equipment, and structurally higher service needs support repeat parts, consumables, and maintenance demand. This recurring aftermarket mix can make revenue and margins more resilient than equipment sales alone across the industrial cycle.

Negative Factors

Cyclical revenue volatilityThe prior revenue declines show that Sandvik remains exposed to swings in machinery and industrial demand despite its current recovery. A renewed downturn could pressure equipment volumes, capacity utilization, and operating leverage, making earnings less predictable over the next several quarters.

Sandvik AB (SDVKY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $45.47B
Dividend Yield: 1.76%
Average Volume (3M): 118.21K
Price to Earnings (P/E): 23.6
Beta (1Y): 1.20
Revenue Growth: 23.35%
EPS Growth: 39.52%
Country: US
Employees: 41,801
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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 rock...

How the Company Makes Money

Sandvik primarily makes money by selling industrial equipment, tooling, and related aftermarket products and services. A major revenue stream comes from Mining and Rock Solutions, where Sandvik sells surface and underground mining equipment (e.g., dr...

Sandvik AB Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:2.03%|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Sandvik reported double-digit order growth, substantial revenue growth, margin expansion above its target range, record quarterly cash flow, 65% adjusted EPS growth, strong mining and Machining performance, and continued strategic innovation. The main challenges were weaker Rock Processing orders, subdued light vehicles, double-digit Powder volume declines, tungsten-related timing effects, pre-buy normalization, and a tariff refund affecting fourth-quarter reported orders and revenue. Management nevertheless described demand as broad-based and maintained or improved several guidance items.

Positive Updates

Strong Group Order and Revenue Growth

Total order intake grew 20%, including 17% organic growth. Total revenue growth was stated as 29% in the presentation, while the concluding remarks cited 26% total revenue growth; organic revenue growth was 25%. Orders were close to SEK 37 billion and revenue was SEK 37.7 billion.

Negative Updates

Rock Processing Order Decline

Rock Processing total order intake decreased 2%, while organic order intake declined 8%. The company had no major orders in the quarter compared with several large orders in the prior-year period. Adjusted EBITA was SEK 418 million, with a 15% margin, down 10 basis points year over year.

Company Guidance

For the fourth quarter, Sandvik expects a continued positive currency impact of around SEK 0.6 billion, a limited impact from the temporary timing effect of tungsten prices based on tungsten prices as of last of September, and a tariff refund of around SEK 400 billion in Machining that will negatively impact order intake and revenues but have no impact on absolute EBITA; for the full year, CapEx and tax rate guidance are unchanged, while interest net guidance has increased to SEK 0.7 billion.

Sandvik AB Financial Statement Overview

Summary

Fundamentals look healthy overall: strong TTM profitability (gross margin ~40.3%, EBIT margin ~19.2%, net margin ~13.1%) and improving leverage (debt-to-equity ~0.43) support a solid base. Offsetting factors are cyclicality in revenue and somewhat uneven cash flow conversion over time despite decent TTM FCF growth and ~82.5% FCF-to-net-income.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	137.07B	113.44B	122.88B	126.50B	112.33B	99.11B
Gross Profit	55.29B	46.06B	49.14B	52.05B	45.37B	40.17B
EBITDA	33.56B	27.13B	26.99B	30.68B	26.03B	23.65B
Net Income	18.25B	13.81B	12.24B	15.30B	11.21B	14.46B
Balance Sheet
Total Assets	200.53B	169.86B	184.38B	174.21B	176.68B	155.52B
Cash, Cash Equivalents and Short-Term Investments	4.08B	4.96B	4.53B	4.36B	10.49B	13.59B
Total Debt	44.21B	37.12B	42.76B	45.08B	52.06B	34.35B
Total Liabilities	90.74B	76.62B	87.39B	86.51B	95.41B	78.19B
Stockholders Equity	109.67B	93.17B	96.92B	87.63B	81.23B	77.20B
Cash Flow
Free Cash Flow	18.09B	15.12B	15.77B	13.44B	5.93B	9.60B
Operating Cash Flow	21.92B	18.72B	20.61B	18.80B	10.46B	13.18B
Investing Cash Flow	-10.26B	-6.66B	-7.67B	-8.51B	-20.30B	-26.19B
Financing Cash Flow	-11.31B	-11.19B	-12.99B	-16.21B	6.22B	2.49B

Sandvik AB Technical Analysis

Technical Analysis SentimentNeutral

Last Price36.50

Price Trends

50DMA37.80Negative

100DMA38.33Negative

200DMA39.19Negative

Market Momentum

MACD-0.38Negative

RSI50.59Neutral

STOCH95.14Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDVKY, the sentiment is Neutral. The current price of 36.50 is above the 20-day moving average (MA) of 35.87, below the 50-day MA of 37.80, and below the 200-day MA of 39.19, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 95.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SDVKY.

Sandvik AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SDVKY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMR	76Outperform	$92.00B	35.91	12.69%	1.35%	4.82%	-1.66%
TEX	74Outperform	$6.31B	27.93	4.71%	1.21%	40.10%	-17.18%
PH	72Outperform	$113.48B	31.14	25.11%	0.84%	8.31%	4.96%
ITW	70Outperform	$79.16B	24.80	103.39%	2.35%	4.80%	8.78%
SDVKY	68Neutral	$45.87B	23.60	18.92%	1.76%	23.35%	39.52%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ASTE	56Neutral	$904.21M	45.66	2.88%	1.32%	18.70%	-57.51%

* Industrials Sector Average

Performance Comparison

SDVKY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SDVKY	Sandvik AB	36.50	6.71	22.51%
ASTE	Astec Industries, Inc.	39.27	-7.04	-15.21%
EMR	Emerson Electric	164.94	27.08	19.64%
ITW	Illinois Tool Works	278.55	41.48	17.50%
PH	Parker-Hannifin Corp	899.82	134.31	17.55%
TEX	Terex Corporation	56.15	10.62	23.31%

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.

Date of analysis: Oct 23, 2026

Sandvik AB AI Stock Analysis