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Epiroc AB
(EPI.A)
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Rating:72Outperform
Price Target:
kr293.00
▲(8.96% Upside)
Action:Upgraded
Date:10/18/26
The score is driven mainly by strong underlying financial quality and a constructive, positive earnings update (solid organic growth, ~20% operating margin, and strong cash conversion). Technicals are supportive with price above major moving averages and neutral momentum. The primary constraint is valuation (P/E ~36 with only ~1.44% yield), alongside noted operational risks like inventory build and mix/timing volatility.
Positive Factors
Recurring Aftermarket Revenue
The large aftermarket contribution gives Epiroc a recurring revenue base tied to its installed equipment fleet and customer utilization. This should support resilience through equipment investment cycles, improve customer retention, and provide a durable foundation for margins and cash generation.
Negative Factors
Inventory and Working-Capital Build
The inventory increase ties up cash and raises execution risk if customer demand, production timing, or equipment mix changes. Persistently elevated working capital could reduce free-cash-flow conversion and require more financing, limiting the benefit of otherwise strong operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket Revenue
The large aftermarket contribution gives Epiroc a recurring revenue base tied to its installed equipment fleet and customer utilization. This should support resilience through equipment investment cycles, improve customer retention, and provide a durable foundation for margins and cash generation.
Read all positive factors
Epiroc AB (EPI.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr296.72B
Dividend Yield1.47%
Average Volume (3M)1.58M
Price to Earnings (P/E)35.3
Beta (1Y)1.33
Revenue Growth-1.94%
EPS Growth-1.63%
CountrySE
Employees19,398
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)7.31
Shares Outstanding823,765,800
10 Day Avg. Volume1,827,413
30 Day Avg. Volume1,580,895
Financial Highlights & Ratios
PEG Ratio-16.44
Price to Book (P/B)6.01
Price to Sales (P/S)4.09
P/FCF Ratio28.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr301.00Price Target Upside11.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)8.36
Revenue Forecast (FY)kr67.02B
Epiroc AB Business Overview & Revenue Model
Company Description
Epiroc AB (publ), a Swedish enterprise established in 1873 and headquartered in Nacka, Sweden, operates with its subsidiaries to develop and manufacture specialized equipment for both surface and subterranean applications. The company's operations...
How the Company Makes Money
Epiroc makes money primarily by selling equipment and by generating recurring aftermarket and service revenue over the installed base of its machines. Key revenue streams typically include: (1) Equipment sales: Revenue from the sale of capital equ...
Epiroc AB Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
Overall the call presented a solid operational and financial performance: double-digit organic order and revenue growth, improving profitability and strong cash generation while demonstrating aftermarket resilience and innovation momentum. Management acknowledged several near-term headwinds—service mix timing, inventory buildup, FX volatility and quarter-to-quarter incremental margin variability—but highlighted concrete efficiency measures, production ramp-ups and a stronger balance sheet that mitigate risks. On balance, positive execution and financial improvements outweigh the challenges discussed.Positive Updates
Strong Order Intake and Continued Organic Growth
Orders received increased 13% organically to SEK 17.3 billion; this is the ninth consecutive quarter of organic order growth. Equipment orders grew 30% organically and service orders increased 6% organically. Large orders in the quarter amounted to SEK 720 million (mainly brownfield and replacement).
Negative Updates
Service Growth Moderation and Mid-life Rebuild Timing
Service orders grew 6% organically in Q2 versus stronger mid-life driven growth in prior quarter (Q1 had ~12% service growth driven by mid-life rebuilds). Management flagged fewer mid-life upgrades in the quarter, creating quarter-to-quarter swings and timing risk for future revenue recognition.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Order Intake and Continued Organic Growth
Orders received increased 13% organically to SEK 17.3 billion; this is the ninth consecutive quarter of organic order growth. Equipment orders grew 30% organically and service orders increased 6% organically. Large orders in the quarter amounted to SEK 720 million (mainly brownfield and replacement).
Read all positive updates
Company Guidance
Management's forward-looking comments were that mining demand should remain high and infrastructure demand is expected to increase somewhat, with equipment revenues “expected to continue to be strong into H2 2026”; they reiterated an effective tax‑rate guidance of 22–24% and highlighted strong cash generation (operating cash flow SEK 1.9bn and 12‑month cash conversion 93%). For context they reported Q2 orders received SEK 17.3bn (+13% organic; equipment orders +30%, service +6%, large orders SEK 720m), revenues SEK 16.7bn (+11% organic), adjusted EBIT SEK 3.35bn (adjusted margin 20.1% / reported EBIT SEK 3.3bn, 19.9%), aftermarket 64% of revenues (service 41%, Tools & Attachments 23%), net working capital SEK 24.9bn (37.1% of revenues), inventories up SEK 4.6bn, net debt SEK 11.4bn (net debt/EBITDA 0.75) and ROCE 19.3%; management also pointed to a long‑term organic growth target of c.8% and continued focus on efficiency to support margins.Epiroc AB Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.38B | 62.00B | 63.60B | 60.34B | 49.69B | 39.65B |
| Gross Profit | 22.28B | 22.97B | 22.95B | 23.15B | 19.02B | 15.45B |
| EBITDA | 15.62B | 15.01B | 15.47B | 15.69B | 13.25B | 10.85B |
| Net Income | 8.84B | 8.60B | 8.73B | 9.43B | 8.40B | 7.06B |
Balance Sheet | ||||||
| Total Assets | 85.89B | 80.38B | 83.59B | 67.78B | 61.78B | 48.58B |
| Cash, Cash Equivalents and Short-Term Investments | 8.63B | 10.94B | 7.18B | 6.40B | 7.33B | 10.79B |
| Total Debt | 18.77B | 20.33B | 21.57B | 13.57B | 10.88B | 9.18B |
| Total Liabilities | 41.29B | 38.10B | 40.41B | 30.57B | 28.27B | 22.79B |
| Stockholders Equity | 44.59B | 42.26B | 42.76B | 36.82B | 33.02B | 25.73B |
Cash Flow | ||||||
| Free Cash Flow | 7.83B | 8.99B | 8.60B | 5.46B | 4.54B | 6.68B |
| Operating Cash Flow | 9.71B | 11.03B | 10.46B | 7.14B | 5.56B | 7.61B |
| Investing Cash Flow | -2.60B | -2.95B | -11.69B | -5.24B | -5.99B | -3.47B |
| Financing Cash Flow | -7.99B | -5.26B | 1.90B | -2.64B | -3.23B | -8.44B |
Epiroc AB Technical Analysis
Negative
268.90
Price Trends
258.31
Negative
256.37
Negative
252.22
Negative
Market Momentum
-0.40
Positive
41.12
Neutral
18.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPI.A, the sentiment is Negative. The current price of 268.9 is above the 20-day moving average (MA) of 260.54, above the 50-day MA of 258.31, and above the 200-day MA of 252.22, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EPI.A.
Epiroc AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr101.68B | 27.30 | 10.20% | 1.74% | 0.11% | 7.71% | |
72 Outperform | kr296.72B | 35.29 | ― | 1.47% | -1.94% | -1.63% | |
69 Neutral | kr901.33B | 35.32 | 23.93% | 1.78% | -1.80% | -5.25% | |
66 Neutral | kr13.39B | 24.00 | 7.49% | 2.64% | -4.48% | -23.29% | |
65 Neutral | kr437.91B | 26.36 | 17.52% | 1.69% | 6.31% | 16.31% | |
63 Neutral | kr651.92B | 18.18 | 19.98% | 2.65% | -5.71% | -5.84% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.