Atlas Copco AB (ATCO.B) AI Stock Analysis

• Market Cap: kr775.03B
• Dividend Yield: 2.06%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 1.26
• Revenue Growth: -2.31%
• EPS Growth: -4.41%
• Country: SE
• Employees: 55,248
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 1,560,876,000
• 10 Day Avg. Volume: 1,400,676
• 30 Day Avg. Volume: 1,312,628
• PEG Ratio: 4.02
• Price to Book (P/B): 6.41
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 23.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: kr161.00 ▲(10.43% Upside)

Atlas Copco AB's overall stock score is driven primarily by its strong financial performance, characterized by robust growth and a debt-free balance sheet. Technical analysis indicates potential for further gains, while valuation metrics suggest the stock is fairly priced. The absence of earnings call and corporate events data does not impact the score.

Atlas Copco AB Business Overview & Revenue Model

Company Description

Atlas 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 Money

Atlas Copco generates revenue primarily through the sale of equipment and services across its various business segments. The key revenue streams include the sale of compressors and vacuum solutions, which cater to industrial and manufacturing needs, as well as industrial tools and assembly systems that support automotive and aerospace industries. In addition to equipment sales, Atlas Copco also earns significant income from aftermarket services, including maintenance, repairs, and spare parts, which provide ongoing revenue and customer loyalty. The company has established strategic partnerships and collaborations with other industrial leaders to enhance its product offerings and market reach, further contributing to its earnings. The focus on innovation and sustainability also positions Atlas Copco to capitalize on emerging trends in energy efficiency and automation, thereby supporting long-term profitability.

Atlas Copco AB Financial Statement Overview

Summary

Atlas Copco AB exhibits strong financial health across all verticals. The company shows consistent revenue growth, high profitability margins, a debt-free balance sheet, and excellent cash flow generation. Its financial metrics indicate a stable and low-risk profile with effective capital management. Overall, Atlas Copco is well-positioned financially, with a solid foundation for future growth and resilience against potential market fluctuations.

Income Statement

Atlas Copco AB has demonstrated strong revenue growth with a Revenue Growth Rate of 2.38% from 2023 to 2024. The company maintains solid profitability metrics with a Gross Profit Margin of 42.86% and a Net Profit Margin of 16.85% in 2024. EBIT and EBITDA margins are robust as well, at 21.60% and 26.56% respectively, indicating efficient operations and expense management. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet is exceptionally strong with a Debt-to-Equity Ratio of 0.00 due to zero total debt in 2024, highlighting a debt-free position which reduces financial risk. The Return on Equity (ROE) stands at a remarkable 26.19%, pointing to effective use of shareholder funds. The Equity Ratio of 54.52% indicates a stable capital structure with ample equity backing the assets. The company's financial stability and low leverage are clear strengths.

Cash Flow

Atlas Copco's cash flow statement reveals a significant Free Cash Flow Growth Rate of 36.39% from 2023 to 2024, underscoring superb cash generation. The Operating Cash Flow to Net Income Ratio is 1.24, reflecting strong cash conversion from earnings. Additionally, the Free Cash Flow to Net Income Ratio of 1.04 further confirms efficient cash flow management. The cash flow indicators suggest robust liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	173.03B	176.77B	172.66B	141.32B	110.91B	99.79B
Gross Profit	74.44B	75.74B	75.12B	59.38B	46.53B	41.18B
EBITDA	45.44B	47.50B	45.12B	36.07B	28.61B	23.91B
Net Income	28.09B	29.78B	28.04B	23.48B	18.13B	14.78B
Balance Sheet
Total Assets	198.91B	208.54B	188.21B	172.30B	136.68B	113.37B
Cash, Cash Equivalents and Short-Term Investments	20.96B	19.33B	11.22B	11.85B	19.58B	11.65B
Total Debt	0.00	34.71B	32.71B	36.30B	24.85B	24.63B
Total Liabilities	98.20B	94.78B	96.70B	92.28B	69.05B	59.83B
Stockholders Equity	100.65B	113.70B	91.45B	79.98B	67.63B	53.22B
Cash Flow
Free Cash Flow	29.68B	30.86B	22.63B	16.35B	19.79B	19.41B
Operating Cash Flow	36.38B	36.89B	28.08B	21.38B	23.15B	22.20B
Investing Cash Flow	-12.90B	-13.32B	-9.39B	-15.50B	-6.12B	-16.29B
Financing Cash Flow	-16.20B	-15.86B	-18.28B	-14.65B	-10.32B	-8.55B

Atlas Copco AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ATCO.B, the sentiment is Positive. The current price of 145.8 is above the 20-day moving average (MA) of 144.74, above the 50-day MA of 139.49, and above the 200-day MA of 141.69, indicating a bullish trend. The MACD of 1.83 indicates Positive momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 37.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ATCO.B.

Atlas Copco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATCO.B	78 Outperform	kr775.03B	25.24	28.28%	2.06%	-2.31%	-4.41%
SAND	76 Outperform	kr350.60B	23.41	16.39%	2.05%	-1.77%	21.13%
ALFA	72 Outperform	kr185.00B	23.05	20.37%	1.86%	2.66%	19.90%
MYCR	72 Outperform	kr39.34B	19.86	31.98%	1.39%	24.55%	32.41%
TREL.B	69 Neutral	kr80.12B	23.17	9.31%	2.00%	2.42%	4.02%
BEIJ.B	65 Neutral	€75.73B	31.87	10.73%	0.88%	11.65%	-2.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%