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Sandvik AB ADR SDVKY

Morningstar Rating
$21.82 +0.08 (0.37%)
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Company Report

Sandvik's Long-Term EBITA Margin Target Is Achievable; Raising Our Fair Value Slightly

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.

Price vs Fair Value

SDVKY is trading within a range we consider fairly valued.
Price
$21.74
Fair Value
$69.00
Uncertainty
High
1-Star Price
$41.00
5-Star Price
$27.00
Economic Moat
Ghtsl
Capital Allocation
Mgwjfcts

Bulls Say, Bears Say

Bulls

Sandvik is able to utilize its leading market position and close relationships with customers to gain a greater share of wallet as it expands its product offering into faster-growing segments.

Bears

Sandvik's healthy balance sheet may see the group overpay for acquisitions to enhance the group's growth profile, given the structural headwinds of some of its end markets.

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News

Trading Information

Previous Close Price
$21.74
Day Range
$21.6621.96
52-Week Range
$16.3123.50
Bid/Ask
$21.67 / $21.91
Market Cap
$27.37 Bil
Volume/Avg
46,514 / 77,362

Key Statistics

Price/Earnings (Normalized)
18.24
Price/Sales
2.29
Dividend Yield (Trailing)
2.24%
Dividend Yield (Forward)
2.40%
Total Yield
2.33%

Company Profile

Sandvik is a manufacturer of specialized tools and mining equipment used predominantly by global mining, engineering, and automotive customers. The company’s core operations are in metal cutting and mining equipment. The company has a well-documented history, having been founded in 1862 and listed on the Nordic Exchange in Stockholm in 1901.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Core
Total Number of Employees
40,877

Competitors

Valuation

Metric
SDVKY
CAT
ATCO A
Price/Earnings (Normalized)
18.2416.9730.67
Price/Book Value
3.119.229.70
Price/Sales
2.292.765.15
Price/Cash Flow
13.6914.5226.24
Price/Earnings
SDVKY
CAT
ATCO A

Financial Strength

Metric
SDVKY
CAT
ATCO A
Quick Ratio
0.800.741.02
Current Ratio
1.641.351.59
Interest Coverage
8.3225.5740.44
Quick Ratio
SDVKY
CAT
ATCO A

Profitability

Metric
SDVKY
CAT
ATCO A
Return on Assets (Normalized)
9.61%12.80%15.61%
Return on Equity (Normalized)
20.06%59.03%32.86%
Return on Invested Capital (Normalized)
13.60%19.53%23.66%
Return on Assets
SDVKY
CAT
ATCO A
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
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PH
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EMR
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OTIS
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IR
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ROK
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