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Sandvik AB ADR

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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation

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.

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