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Atlas Copco AB Class A ATCO A

Morningstar Rating
SEK 180.80 −1.35 (0.74%)
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Company Report

Weak Europe Economic Conditions, Semiconductor Equipment Spending Likely Headwinds for Atlas Copco

Atlas Copco is a sharply focused supplier of capital equipment, with a selective presence in attractive market niches for engineered equipment where the firm can optimally leverage its reputation for innovation and quality products. In doing so, Atlas Copco seeks out industrial and scientific equipment categories that are considered mission-critical by their users and where it possesses or can assume a market leadership position from a technology and brand visibility standpoint. At the same time, the firm shuns significantly commoditized capital equipment categories and market segments. Its air compressor and vacuum pump and equipment businesses—its two largest, account for approximately three quarters of group EBIT—are prime examples of the firm’s discerning approach where it sports industry-leading market shares in medium- to high-end market segments.

Price vs Fair Value

ATCO A is trading at a 28% premium.
Price
SEK 186.00
Fair Value
SEK 447.00
Uncertainty
Medium
1-Star Price
SEK 475.28
5-Star Price
SEK 272.50
Economic Moat
Dtcdm
Capital Allocation
Ffxysfgnx

Bulls Say, Bears Say

Bulls

Atlas Copco’s reputation is synonymous with innovative and high-quality products in air compressor, vacuum pump, and industrial power tool markets, delivering pricing power and wide profit margins.

Bears

Near-term order intake is likely to suffer as a weakened economic outlook reins in capital expenditure plans for Atlas Copco’s industrial and manufacturing customers.

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Trading Information

Previous Close Price
SEK 182.15
Day Range
SEK 180.30182.90
52-Week Range
SEK 124.20187.75
Bid/Ask
SEK 180.80 / SEK 180.90
Market Cap
SEK 880.60 Bil
Volume/Avg
2.8 Mil / 4.4 Mil

Key Statistics

Price/Earnings (Normalized)
30.45
Price/Sales
5.11
Dividend Yield (Trailing)
1.27%
Dividend Yield (Forward)
1.55%
Total Yield
1.27%

Company Profile

Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Growth
Total Number of Employees
52,778

Competitors

Valuation

Metric
ATCO A
IR
ALFA
Price/Earnings (Normalized)
30.4533.5523.13
Price/Book Value
9.633.914.70
Price/Sales
5.115.652.73
Price/Cash Flow
26.0530.6619.46
Price/Earnings
ATCO A
IR
ALFA

Financial Strength

Metric
ATCO A
IR
ALFA
Quick Ratio
1.021.550.75
Current Ratio
1.592.221.28
Interest Coverage
40.447.5817.79
Quick Ratio
ATCO A
IR
ALFA

Profitability

Metric
ATCO A
IR
ALFA
Return on Assets (Normalized)
15.61%8.05%7.47%
Return on Equity (Normalized)
32.86%12.86%17.30%
Return on Invested Capital (Normalized)
23.66%10.87%12.09%
Return on Assets
ATCO A
IR
ALFA
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