Sandvik AB (SAND) AI Stock Analysis

• Market Cap: kr252.13B
• Dividend Yield: 2.83%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.38
• Revenue Growth: -1.09%
• EPS Growth: 15.72%
• Country: SE
• Employees: 41,400
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 3.42
• Shares Outstanding: 1,254,385,900
• 10 Day Avg. Volume: 2,133,814
• 30 Day Avg. Volume: 2,611,192
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: kr209.55
• Price Target Upside: 4.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Sandvik AB exhibits strong financial health with robust cash flow and a solid balance sheet, contributing to a positive financial performance score. However, the technical analysis reflects a bearish short-term outlook, with key indicators suggesting potential overselling. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield. Overall, while the company is fundamentally strong, current market conditions suggest caution in the near term.

Sandvik AB Business Overview & Revenue Model

Company Description

Sandvik AB is a global engineering company specializing in high-tech manufacturing solutions. The company operates in three main sectors: Sandvik Mining and Rock Technology, Sandvik Machining Solutions, and Sandvik Materials Technology. It provides equipment and tools for the mining and construction industries, advanced stainless steels and special alloys, as well as products and solutions for metal cutting. Sandvik is headquartered in Sweden and serves customers worldwide with a focus on innovation and sustainability.

How the Company Makes Money

Sandvik AB generates revenue through the sale of its products and solutions across its three main business sectors. In the Sandvik Mining and Rock Technology sector, the company earns money by providing equipment, tools, and service solutions for mining and construction industries, including rock drills, crushers, and automation systems. Sandvik Machining Solutions contributes to revenue by offering tools and tooling systems for industrial metal cutting, catering to a broad range of industries such as automotive, aerospace, and energy. The Sandvik Materials Technology sector generates income through the production and sale of advanced stainless steels, special alloys, and titanium, which are used in demanding environments like the chemical and oil and gas industries. Additionally, Sandvik's revenue is bolstered by its focus on innovation, customer service, and strategic partnerships, which help in expanding its market presence and enhancing its product offerings.

Sandvik AB Financial Statement Overview

Summary

Sandvik AB is in a strong financial position, with solid revenue and profitability metrics, a strong balance sheet with reduced leverage, and robust cash flow generation. Despite a slight revenue decline from 2023 to 2024, the company demonstrates efficient cost management and operational efficiency.

Income Statement

Sandvik AB has demonstrated strong financial performance with a consistent increase in total revenue over the years, highlighted by a TTM (Trailing-Twelve-Months) revenue of 123.18 billion SEK. The gross profit margin has remained healthy at around 41%, reflecting efficient cost management. The TTM net profit margin is robust at 11.96%, with EBIT and EBITDA margins further indicating strong operational efficiency. Revenue growth has been steady, though there was a slight decline from 2023 to 2024, which could be an area of concern if it continues.

Balance Sheet

Sandvik's balance sheet shows a solid equity position with a total equity of 92.87 billion SEK in the latest TTM period, resulting in a commendable equity ratio of 52.93%. The company has significantly reduced its debt, with a debt-to-equity ratio now at zero, indicating financial prudence and reduced leverage risk. However, the decrease in total assets may point to divestitures or other strategic realignments that need to be monitored.

Cash Flow

The cash flow statement reveals strong operational cash flow generation, with a TTM operating cash flow of 18.61 billion SEK. The free cash flow has grown significantly, showcasing effective capital management and investment strategies. The operating cash flow to net income and free cash flow to net income ratios are healthy, suggesting efficient conversion of profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
122.88B	126.50B	112.33B	99.11B	86.40B
	Gross Profit
49.14B	52.05B	45.37B	40.17B	32.24B
	EBIT
18.42B	22.42B	18.59B	18.94B	11.22B
	EBITDA
26.99B	29.75B	25.86B	23.72B	17.88B
	Net Income Common Stockholders
12.24B	15.30B	11.21B	14.46B	8.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.53B	4.36B	10.49B	13.59B	23.75B
	Total Assets
184.38B	174.21B	176.68B	155.52B	119.13B
	Total Debt
42.76B	45.08B	52.06B	34.35B	17.89B
	Net Debt
38.23B	40.72B	41.57B	20.77B	-5.87B
	Total Liabilities
87.39B	86.51B	95.41B	78.19B	54.05B
	Stockholders Equity
96.92B	87.63B	81.23B	77.20B	65.08B
Cash Flow		Free Cash Flow
15.77B	13.44B	5.93B	9.60B	12.15B
	Operating Cash Flow
20.61B	18.80B	10.46B	13.18B	15.35B
	Investing Cash Flow
-7.67B	-8.51B	-20.30B	-26.19B	-4.78B
	Financing Cash Flow
-12.99B	-16.21B	6.22B	2.49B	-3.31B

Sandvik AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 201.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SAND, the sentiment is Neutral. The current price of 201 is above the 20-day moving average (MA) of 187.74, below the 50-day MA of 207.78, and below the 200-day MA of 207.00, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SAND.

Sandvik AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	78 Outperform	kr162.44B	21.83	18.80%	2.15%	6.40%	18.28%
ATCO.B	78 Outperform	kr701.17B	22.57	27.15%	2.15%	0.54%	1.79%
ATCO.A	72 Outperform	kr701.17B	25.31	27.15%	1.93%	0.54%	1.79%
SAND	70 Neutral	kr252.13B	17.28	15.81%	2.83%	-1.09%	15.72%
TREL.B	66 Neutral	kr78.04B	21.50	9.02%	2.22%	2.94%	-59.33%
SKF.B	65 Neutral	kr86.26B	13.67	11.14%	4.04%	-3.96%	2.77%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%