Sandvik AB
SAND: XSTO (SWE)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| SEK 726.00 | Ygldgwd | Klzlbxnr |
Sandvik's Long-Term EBITA Margin Target Is Achievable; Raising Our Fair Value Slightly
Business Strategy and Outlook
The short-cycle nature of demand for Sandvik’s metal-cutting tools and mining equipment exposes the group to cyclical swings in industrial manufacturing and commodity prices. A combination of divestments and continuous focus on ways to improve operational efficiency has successfully created a more resilient and profitable business. However, restructuring programs are frequently required to protect profitability once macroeconomic conditions change.