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Alfa Laval

OM:ALFA
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALFA
OM
SEK86B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The last earnings update was 32 days ago. More info.


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ALFA Share Price and Events
7 Day Returns
-3.1%
OM:ALFA
-4%
SE Machinery
-1.7%
SE Market
1 Year Returns
-8.6%
OM:ALFA
-16.9%
SE Machinery
-1%
SE Market
ALFA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alfa Laval (ALFA) -3.1% -7.2% -0.6% -8.6% 61.8% 16.3%
SE Machinery -4% -11.3% -0.1% -16.9% 37.9% 31.1%
SE Market -1.7% -5% 0.2% -1% 10% 15%
1 Year Return vs Industry and Market
  • ALFA outperformed the Machinery industry which returned -16.9% over the past year.
  • ALFA underperformed the Market in Sweden which returned -1% over the past year.
Price Volatility
ALFA
Industry
5yr Volatility vs Market

Value

 Is Alfa Laval undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alfa Laval to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alfa Laval.

OM:ALFA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:ALFA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.045 (1 + (1- 22%) (14.08%))
1.107
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.107 * 5.96%)
7.03%

Discounted Cash Flow Calculation for OM:ALFA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alfa Laval is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:ALFA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 7.03%)
2019 4,551.67 Analyst x9 4,252.59
2020 5,588.63 Analyst x8 4,878.32
2021 5,789.00 Analyst x6 4,721.19
2022 5,939.37 Est @ 2.6% 4,525.55
2023 6,055.10 Est @ 1.95% 4,310.57
2024 6,145.58 Est @ 1.49% 4,087.51
2025 6,217.87 Est @ 1.18% 3,863.85
2026 6,277.17 Est @ 0.95% 3,644.39
2027 6,327.25 Est @ 0.8% 3,432.09
2028 6,370.84 Est @ 0.69% 3,228.67
Present value of next 10 years cash flows SEK40,944.73
OM:ALFA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK6,370.84 × (1 + 0.43%) ÷ (7.03% – 0.43%)
SEK96,967.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK96,967.45 ÷ (1 + 7.03%)10
SEK49,141.98
OM:ALFA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK40,944.73 + SEK49,141.98
SEK90,086.71
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK90,086.71 / 419.46
SEK214.77
OM:ALFA Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK214.77
Current discount Discount to share price of SEK203.90
= -1 x (SEK203.90 - SEK214.77) / SEK214.77
5.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alfa Laval is available for.
Intrinsic value
5%
Share price is SEK203.9 vs Future cash flow value of SEK214.77
Current Discount Checks
For Alfa Laval to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alfa Laval's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Alfa Laval's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alfa Laval's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alfa Laval's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:ALFA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SEK SEK11.19
OM:ALFA Share Price ** OM (2019-05-24) in SEK SEK203.9
Sweden Machinery Industry PE Ratio Median Figure of 17 Publicly-Listed Machinery Companies 15.86x
Sweden Market PE Ratio Median Figure of 323 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alfa Laval.

OM:ALFA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:ALFA Share Price ÷ EPS (both in SEK)

= 203.9 ÷ 11.19

18.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Laval is overvalued based on earnings compared to the SE Machinery industry average.
  • Alfa Laval is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does Alfa Laval's expected growth come at a high price?
Raw Data
OM:ALFA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
5.2%per year
Sweden Machinery Industry PEG Ratio Median Figure of 14 Publicly-Listed Machinery Companies 2.62x
Sweden Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

OM:ALFA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.23x ÷ 5.2%

3.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Laval is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alfa Laval's assets?
Raw Data
OM:ALFA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SEK SEK61.22
OM:ALFA Share Price * OM (2019-05-24) in SEK SEK203.9
Sweden Machinery Industry PB Ratio Median Figure of 27 Publicly-Listed Machinery Companies 3.08x
Sweden Market PB Ratio Median Figure of 568 Publicly-Listed Companies 2.47x
OM:ALFA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:ALFA Share Price ÷ Book Value per Share (both in SEK)

= 203.9 ÷ 61.22

3.33x

* Primary Listing of Alfa Laval.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Laval is overvalued based on assets compared to the SE Machinery industry average.
X
Value checks
We assess Alfa Laval's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Alfa Laval has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alfa Laval expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alfa Laval expected to grow at an attractive rate?
  • Alfa Laval's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Alfa Laval's earnings growth is positive but not above the Sweden market average.
  • Alfa Laval's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:ALFA Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:ALFA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 5.2%
OM:ALFA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 3.9%
Sweden Machinery Industry Earnings Growth Rate Market Cap Weighted Average 2.2%
Sweden Machinery Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.7%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:ALFA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:ALFA Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 48,316 6,970 5,616 11
2020-12-31 47,198 6,470 5,413 13
2019-12-31 45,045 5,831 5,115 11
OM:ALFA Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-03-31 41,973 5,176 4,692
2018-12-31 40,666 4,883 4,519
2018-09-30 39,569 4,966 4,287
2018-06-30 37,607 4,660 3,886
2018-03-31 36,039 4,325 3,248
2017-12-31 35,314 4,463 2,976
2017-09-30 35,106 4,815 2,528
2017-06-30 35,518 4,682 1,748
2017-03-31 35,561 4,873 2,196
2016-12-31 35,634 4,979 2,289
2016-09-30 36,535 4,929 2,611
2016-06-30 37,647 5,387 3,702

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alfa Laval's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • Alfa Laval's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:ALFA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Alfa Laval Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ALFA Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 13.26 14.60 12.23 9.00
2020-12-31 12.92 14.00 11.66 12.00
2019-12-31 12.17 12.82 11.49 13.00
OM:ALFA Past Financials Data
Date (Data in SEK Millions) EPS *
2019-03-31 11.19
2018-12-31 10.77
2018-09-30 10.22
2018-06-30 9.26
2018-03-31 7.74
2017-12-31 7.09
2017-09-30 6.03
2017-06-30 4.17
2017-03-31 5.24
2016-12-31 5.46
2016-09-30 6.22
2016-06-30 8.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Alfa Laval is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Alfa Laval's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alfa Laval has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alfa Laval performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alfa Laval's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alfa Laval's year on year earnings growth rate has been positive over the past 5 years.
  • Alfa Laval's 1-year earnings growth exceeds its 5-year average (44.5% vs 4.8%)
  • Alfa Laval's earnings growth has exceeded the SE Machinery industry average in the past year (44.5% vs 28.9%).
Earnings and Revenue History
Alfa Laval's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alfa Laval Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ALFA Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 41,973.00 4,692.00 6,640.00 1,063.00
2018-12-31 40,666.00 4,519.00 6,526.00 1,020.00
2018-09-30 39,569.00 4,287.00 6,324.00 958.00
2018-06-30 37,607.00 3,886.00 6,150.00 928.00
2018-03-31 36,039.00 3,248.00 6,038.00 894.00
2017-12-31 35,314.00 2,976.00 5,936.00 874.00
2017-09-30 35,106.00 2,528.00 5,919.00 850.00
2017-06-30 35,518.00 1,748.00 5,988.00 840.00
2017-03-31 35,561.00 2,196.00 6,002.00 833.00
2016-12-31 35,634.00 2,289.00 5,977.00 822.00
2016-09-30 36,535.00 2,611.00 5,983.00 790.00
2016-06-30 37,647.00 3,702.00 5,949.00 779.00
2016-03-31 38,874.00 3,847.00 5,904.00 752.00
2015-12-31 39,746.00 3,839.00 5,920.00 756.00
2015-09-30 39,716.00 3,806.00 5,930.00 777.00
2015-06-30 39,295.00 3,518.00 5,878.00 777.00
2015-03-31 37,541.00 3,242.00 5,771.00 792.00
2014-12-31 35,067.00 2,946.00 5,600.00 790.00
2014-09-30 32,901.00 2,913.00 5,443.00 751.00
2014-06-30 30,801.00 3,039.00 5,281.00 743.00
2014-03-31 29,893.00 2,888.00 5,148.00 725.00
2013-12-31 29,801.00 3,027.00 5,060.00 702.00
2013-09-30 29,311.00 3,071.00 5,012.00 729.00
2013-06-30 29,191.00 3,100.00 4,963.00 717.00
2013-03-31 29,487.00 3,177.00 4,963.00 714.00
2012-12-31 29,813.00 3,206.00 5,001.00 707.00
2012-09-30 29,843.00 3,223.00 5,136.00 673.00
2012-06-30 30,362.00 3,149.00 5,225.00 671.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alfa Laval has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Alfa Laval used its assets less efficiently than the SE Machinery industry average last year based on Return on Assets.
  • Alfa Laval's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Alfa Laval's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alfa Laval has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alfa Laval's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alfa Laval's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alfa Laval is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alfa Laval's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alfa Laval's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alfa Laval Company Filings, last reported 1 month ago.

OM:ALFA Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 25,817.00 12,039.00 4,962.00
2018-12-31 23,599.00 12,061.00 4,897.00
2018-09-30 22,791.00 11,851.00 3,253.00
2018-06-30 22,277.00 11,976.00 2,569.00
2018-03-31 22,440.00 11,736.00 2,804.00
2017-12-31 20,500.00 12,707.00 4,335.00
2017-09-30 19,587.00 12,210.00 1,949.00
2017-06-30 18,929.00 13,375.00 2,369.00
2017-03-31 20,882.00 13,247.00 3,012.00
2016-12-31 20,276.00 13,491.00 3,684.00
2016-09-30 20,112.00 13,886.00 1,680.00
2016-06-30 19,304.00 14,498.00 1,772.00
2016-03-31 19,599.00 13,578.00 1,925.00
2015-12-31 18,423.00 14,757.00 2,888.00
2015-09-30 17,326.00 16,139.00 1,660.00
2015-06-30 17,346.00 16,593.00 1,620.00
2015-03-31 18,470.00 16,525.00 1,877.00
2014-12-31 17,202.00 17,976.00 2,700.00
2014-09-30 17,618.00 17,999.00 1,975.00
2014-06-30 16,484.00 18,971.00 1,665.00
2014-03-31 16,874.00 4,005.00 1,620.00
2013-12-31 16,162.00 4,806.00 2,035.00
2013-09-30 14,772.00 5,426.00 1,368.00
2013-06-30 14,256.00 6,421.00 1,392.00
2013-03-31 14,882.00 4,945.00 1,352.00
2012-12-31 14,453.00 6,235.00 1,818.00
2012-09-30 14,537.00 5,706.00 1,724.00
2012-06-30 14,214.00 6,144.00 1,573.00
  • Alfa Laval's level of debt (46.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24.7% vs 46.6% today).
  • Debt is well covered by operating cash flow (43%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 74.3x coverage).
X
Financial health checks
We assess Alfa Laval's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alfa Laval has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Alfa Laval's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.45%
Current annual income from Alfa Laval dividends. Estimated to be 2.83% next year.
If you bought SEK2,000 of Alfa Laval shares you are expected to receive SEK49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Alfa Laval's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.82%).
  • Alfa Laval's dividend is below the markets top 25% of dividend payers in Sweden (4.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:ALFA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Sweden Machinery Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.9%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 244 Stocks 3.3%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.8%
Sweden Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:ALFA Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 6.03 12.00
2020-12-31 5.84 14.00
2019-12-31 5.50 14.00
OM:ALFA Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-03-20 5.000 2.334
2018-03-16 4.250 1.985
2017-03-21 4.250 2.248
2016-03-18 4.250 3.070
2015-03-31 4.000 2.696
2015-02-03 4.000 2.472
2014-04-04 3.750 2.371
2014-02-05 3.750 2.179
2013-03-28 3.500 2.343
2013-02-05 3.500 2.370
2012-04-02 3.250 2.617
2012-02-07 3.250 2.417
2011-03-31 3.000 2.374
2011-02-08 3.000 2.332
2010-04-01 2.500 2.158
2010-02-10 2.500 2.364

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Alfa Laval has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Alfa Laval only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Alfa Laval's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Alfa Laval's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alfa Laval afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alfa Laval has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alfa Laval's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Erixon
COMPENSATION SEK23,021,000
AGE 58
TENURE AS CEO 3.2 years
CEO Bio

Mr. Tom Erixon serves as a Director of Boliden AB since 2013. He is President and CEO of Alfa Laval since March 1, 2016. He has been Member of the Board of Chinsay. He had served as a Managing partner Boston Consulting Group and a variety of senior positions within Sandvik. He had served as President and CEO of OVAKO AB and President of Sandvik Coromant. He hold an MA Law from the University of Lund in Sweden and MBA Business Administration from IESE in Spain.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Alfa Laval management team in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the Alfa Laval management team is less than 2 years, this suggests a new team.
Management Team

Tom Erixon

TITLE
President & CEO
COMPENSATION
SEK23M
AGE
58
TENURE
3.2 yrs

Jan Allde

TITLE
Chief Financial Officer
AGE
51
TENURE
1.3 yrs

Mikael Tydén

TITLE
President of Operations Division
AGE
51
TENURE
2.3 yrs

Frank Bolata

TITLE
Chief Information Officer
TENURE
1.1 yrs

Gabriella Grotte

TITLE
Investor Relations Manager

Mikael Wahlgren

TITLE
Chief Legal Counsel and Secretary
AGE
53

Peter Torstensson

TITLE
Senior Vice President of Corporate Communications
AGE
63
TENURE
20.3 yrs

Alex Syed

TITLE
Vice President of Corporate Development

Joakim Vilson

TITLE
Senior Vice President of Global Sales & Service
AGE
53

Pascale Gimenez

TITLE
Senior Vice President of Human Resources
AGE
52
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Alfa Laval board of directors in years:

8.3
Average Tenure
57
Average Age
  • The tenure for the Alfa Laval board of directors is about average.
Board of Directors

Anders Narvinger

TITLE
Chairman
COMPENSATION
SEK2M
AGE
70
TENURE
16 yrs

Jörn Rausing

TITLE
Director
COMPENSATION
SEK610K
AGE
58
TENURE
19.3 yrs

Finn Rausing

TITLE
Director
COMPENSATION
SEK735K
AGE
63
TENURE
18.8 yrs

Ulf Wiinberg

TITLE
Director
COMPENSATION
SEK610K
AGE
60
TENURE
6.3 yrs

Anna Ohlsson-Leijon

TITLE
Director
COMPENSATION
SEK685K
AGE
50
TENURE
2.1 yrs

Henrik Lange

TITLE
Director
COMPENSATION
SEK685K
AGE
57
TENURE
1.3 yrs

Heléne Mellquist

TITLE
Director
AGE
54
TENURE
0.1 yrs

Maria Hanssen

TITLE
Director
AGE
53
TENURE
0.1 yrs

Stefan Sandell

TITLE
Deputy Employee Representative Director
AGE
47
TENURE
14.3 yrs

Leif Norkvist

TITLE
Deputy Employee Representative Director
AGE
57
TENURE
10.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
30. Nov 18 Buy Anna Ohlsson-Leijon Individual 29. Nov 18 29. Nov 18 2,000 SEK192.88 SEK385,760
14. Nov 18 Buy Tom Erixon Individual 14. Nov 18 14. Nov 18 10,000 SEK203.00 SEK2,030,000
X
Management checks
We assess Alfa Laval's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alfa Laval has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Calculating The Fair Value Of Alfa Laval AB (publ) (STO:ALFA)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (SEK, Millions) SEK4.55k SEK5.59k SEK5.79k SEK5.94k SEK6.06k SEK6.15k SEK6.22k SEK6.28k SEK6.33k SEK6.37k Growth Rate Estimate Source Analyst x9 Analyst x8 Analyst x6 Est @ 2.6% Est @ 1.95% Est @ 1.49% Est @ 1.18% Est @ 0.95% Est @ 0.8% Est @ 0.69% Present Value (SEK, Millions) Discounted @ 7.05% SEK4.25k SEK4.88k SEK4.72k SEK4.52k SEK4.31k SEK4.08k SEK3.86k SEK3.64k SEK3.43k SEK3.22k Present Value of 10-year Cash Flow (PVCF)= SEK40.92b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … OM:ALFA Intrinsic value, May 20th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Has Alfa Laval AB (publ) (STO:ALFA) Improved Earnings Growth In Recent Times?

In this commentary, I will examine Alfa Laval AB (publ)'s (STO:ALFA) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the machinery industry performed. … See our latest analysis for Alfa Laval Did ALFA's recent earnings growth beat the long-term trend and the industry? … You should continue to research Alfa Laval to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ALFA’s future growth?

Simply Wall St -

Is There More To Alfa Laval AB (publ) (STO:ALFA) Than Its 15% Returns On Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Here's Why We Think Alfa Laval (STO:ALFA) Is Well Worth Watching

Alfa Laval's Earnings Per Share Are Growing. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While we note Alfa Laval's EBIT margins were flat over the last year, revenue grew by a solid 15% to kr41b.

Simply Wall St -

What Investors Should Know About Alfa Laval AB (publ)'s (STO:ALFA) Financial Strength

Today we will look at Alfa Laval’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … See our latest analysis for Alfa Laval

Simply Wall St -

At kr216, Is Alfa Laval AB (publ) (STO:ALFA) Worth Looking At Closely?

Alfa Laval AB (publ) (STO:ALFA), which is in the machinery business, and is based in Sweden,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Alfa Laval’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Is Alfa Laval AB (publ)'s (STO:ALFA) High P/E Ratio A Problem For Investors?

We'll look at Alfa Laval AB (publ)'s (STO:ALFA) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Alfa Laval's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Alfa Laval AB (publ) (STO:ALFA) Has A ROE Of 19%

Over the last twelve months Alfa Laval has recorded a ROE of 19%. … That means that for every SEK1 worth of shareholders' equity, it generated SEK0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Investors Should Know About Alfa Laval AB (publ)'s (STO:ALFA) Financial Strength

Today we will look at ALFA’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … View our latest analysis for Alfa Laval

Simply Wall St -

If You Had Bought Alfa Laval Stock Three Years Ago, You Could Pocket A 47% Gain Today

For example, the Alfa Laval AB (publ) (STO:ALFA) share price is up 47% in the last three years, clearly besting than the market return of around 9.8% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Alfa Laval was able to grow its EPS at 5.6% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in five segments: Energy, Food & Water, Marine, Greenhouse, and Operations & Other. It offers fluid handling systems, such as automation and fluid control equipment; installation materials; analytical, cleaning validation, flow, level, pressure, temperature, and weighing instruments, as well as instrumentation accessories; mixing equipment; centrifugal, circumferential piston, rotary lobe, and screw pumps; rotary jet and spray heads; tank covers and accessories; and valves. The company also provides heat transfer products, including air heat exchangers; exhaust gas economizers, and oil/gas-fired composite steam and steam boilers; burners; oil/gas-fired hot water and thermal, and waste heat recovery heaters; plate and tubular heat exchangers; and scraped surface heat exchangers. In addition, it offers separation products comprising cylindrical filter baskets and filtering elements; decanters and separators; evaporation systems; filters and strainers; and membrane and pump control systems. Further, the company provides process solutions consisting of ballast water, brewery, bulk, desalination, edible oil, exhaust gas cleaning, filling, fresh water, fuel conditioning, marine exhaust gas, olive oil, protein, refrigeration, safety, and thermal solutions. It serves the biotech and pharmaceuticals, energy, chemicals,food, dairy, beverage, home and personal care, HVAC, machinery and manufacturing, marine and transportation, mining, minerals, pigment, pulp and paper, refrigeration, semiconductor and electronics, steel, and water and waste treatment industries. The company was formerly known as AB Separator and changed its name to Alfa Laval AB (publ) in 1963. Alfa Laval AB (publ) was founded in 1883 and is headquartered in Lund, Sweden.

Details
Name: Alfa Laval AB (publ)
ALFA
Exchange: OM
Founded: 1883
SEK85,527,142,628
419,456,315
Website: http://www.alfalaval.com
Address: Alfa Laval AB (publ)
Rudeboksvägen 1,
Lund,
Skåne County, 226 55,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM ALFA Common Stock OMX Nordic Exchange Stockholm SE SEK 20. May 2002
OTCPK ALFV.F Common Stock Pink Sheets LLC US USD 20. May 2002
DB AA9 Common Stock Deutsche Boerse AG DE EUR 20. May 2002
LSE 0NNF Common Stock London Stock Exchange GB SEK 20. May 2002
BATS-CHIXE ALFAS Common Stock BATS 'Chi-X Europe' GB SEK 20. May 2002
OTCPK ALFV.Y ADR Pink Sheets LLC US USD 22. Oct 2008
Number of employees
Current staff
Staff numbers
17,510
Alfa Laval employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 20:51
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.