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Atlas Copco AB Class A ATCO A

Morningstar Rating
SEK 200.80 −2.30 (1.13%)
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Company Report

Atlas Copco: Upbeat Organic Growth Outlook Reaffirmed at 2024 Capital Markets Day

We retain our SEK 145 fair value estimate for wide-moat Atlas Copco as it announced no change to the group’s strategy or financial targets at its 2024 capital markets day. Atlas Copco continues to eye significant organic growth opportunities across each of its four divisions with its research and development program—to which the group allocates approximately 4% of sales annually—remaining the group’s key long-term growth support. The group’s R&D efforts aim to further increase the size of its divisions’ addressable markets via the launch of new products and innovation that improves its existing equipment offering while also broadening the application range of its products. We expect these opportunities to support strong growth over the coming decade, with our respective forecast 10-year EBIT and EPS CAGRs of about 9% and 10% remaining intact.

Price vs Fair Value

ATCO A is trading at a 425% premium.
Price
SEK 203.10
Fair Value
SEK 155.00
Uncertainty
Medium
1-Star Price
SEK 219.19
5-Star Price
SEK 784.20
Economic Moat
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Capital Allocation
Ktjzyxnyh

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 203.10
Day Range
SEK 200.50204.10
52-Week Range
SEK 136.40206.40
Bid/Ask
SEK 200.80 / SEK 200.90
Market Cap
SEK 978.47 Bil
Volume/Avg
885,296 / 4.5 Mil

Key Statistics

Price/Earnings (Normalized)
33.32
Price/Sales
5.64
Dividend Yield (Trailing)
1.26%
Dividend Yield (Forward)
1.38%
Total Yield
1.26%

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
53,728

Competitors

Valuation

Metric
ATCO A
IR
ALFA
Price/Earnings (Normalized)
33.3231.1626.53
Price/Book Value
9.473.945.09
Price/Sales
5.645.693.12
Price/Cash Flow
28.7429.8322.34
Price/Earnings
ATCO A
IR
ALFA

Financial Strength

Metric
ATCO A
IR
ALFA
Quick Ratio
1.021.550.85
Current Ratio
1.592.221.36
Interest Coverage
40.447.5819.11
Quick Ratio
ATCO A
IR
ALFA

Profitability

Metric
ATCO A
IR
ALFA
Return on Assets (Normalized)
15.13%8.32%7.80%
Return on Equity (Normalized)
31.04%13.24%17.84%
Return on Invested Capital (Normalized)
22.70%11.18%12.45%
Return on Assets
ATCO A
IR
ALFA
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