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ALFA

Alfa LavalOM:ALFA Stock Report

Last Price

kr330.00

Market Cap

kr138.5b

7D

-2.5%

1Y

39.8%

Updated

17 Jan, 2022

Data

Company Financials +
ALFA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends4/6

ALFA Stock Overview

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide.

Alfa Laval Competitors

Raytheon Technologies

NYSE:RTX

US$138.4b

Illinois Tool Works

NYSE:ITW

US$76.5b

Trane Technologies

NYSE:TT

US$42.8b

Panasonic

TSE:6752

JP¥3.1t

Price History & Performance

Summary of all time highs, changes and price drops for Alfa Laval
Historical stock prices
Current Share Pricekr330.00
52 Week Highkr390.80
52 Week Lowkr216.50
Beta1.3
1 Month Change-3.45%
3 Month Change-2.05%
1 Year Change39.83%
3 Year Change66.63%
5 Year Change113.87%
Change since IPO1,246.94%

Recent News & Updates

Jan 08
Does This Valuation Of Alfa Laval AB (publ) (STO:ALFA) Imply Investors Are Overpaying?

Does This Valuation Of Alfa Laval AB (publ) (STO:ALFA) Imply Investors Are Overpaying?

How far off is Alfa Laval AB (publ) ( STO:ALFA ) from its intrinsic value? Using the most recent financial data, we'll...

Dec 25
What Is Alfa Laval AB (publ)'s (STO:ALFA) Share Price Doing?

What Is Alfa Laval AB (publ)'s (STO:ALFA) Share Price Doing?

Today we're going to take a look at the well-established Alfa Laval AB (publ) ( STO:ALFA ). The company's stock saw a...

Nov 17
Alfa Laval (STO:ALFA) Is Experiencing Growth In Returns On Capital

Alfa Laval (STO:ALFA) Is Experiencing Growth In Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Nov 04
Alfa Laval (STO:ALFA) Has A Pretty Healthy Balance Sheet

Alfa Laval (STO:ALFA) Has A Pretty Healthy Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ALFASE MachinerySE Market
7D-2.5%-4.2%-3.9%
1Y39.8%20.1%21.1%

Return vs Industry: ALFA exceeded the Swedish Machinery industry which returned 20.1% over the past year.

Return vs Market: ALFA exceeded the Swedish Market which returned 21.1% over the past year.

Price Volatility

Is ALFA's price volatile compared to industry and market?
ALFA volatility
ALFA Average Weekly Movement4.7%
Machinery Industry Average Movement5.8%
Market Average Movement6.8%
10% most volatile stocks in SE Market11.7%
10% least volatile stocks in SE Market3.8%

Stable Share Price: ALFA is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ALFA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188317,678Tom Erixonhttps://www.alfalaval.com

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in three divisions: Energy, Food & Water, and Marine. It offers fluid handling systems, such as automation solutions; installation materials; cleaning validation instruments and instrumentation accessories; mixing equipment; centrifugal, circumferential piston, rotary lobe, and screw pumps; rotary jet and spray heads; tank covers and accessories; and valves.

Alfa Laval Fundamentals Summary

How do Alfa Laval's earnings and revenue compare to its market cap?
ALFA fundamental statistics
Market Capkr138.46b
Earnings (TTM)kr3.85b
Revenue (TTM)kr39.91b

35.6x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALFA income statement (TTM)
Revenuekr39.91b
Cost of Revenuekr25.73b
Gross Profitkr14.19b
Expenseskr10.34b
Earningskr3.85b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 02, 2022

Earnings per share (EPS)9.28
Gross Margin35.55%
Net Profit Margin9.66%
Debt/Equity Ratio29.2%

How did ALFA perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Alfa Laval undervalued compared to its fair value and its price relative to the market?

35.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALFA (SEK330) is trading above our estimate of fair value (SEK271.06)

Significantly Below Fair Value: ALFA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALFA is poor value based on its PE Ratio (35.6x) compared to the Swedish Machinery industry average (24.5x).

PE vs Market: ALFA is poor value based on its PE Ratio (35.6x) compared to the Swedish market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: ALFA is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ALFA is overvalued based on its PB Ratio (4.6x) compared to the SE Machinery industry average (4.1x).


Future Growth

How is Alfa Laval forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALFA's forecast earnings growth (12.3% per year) is above the savings rate (0.3%).

Earnings vs Market: ALFA's earnings (12.3% per year) are forecast to grow faster than the Swedish market (4.3% per year).

High Growth Earnings: ALFA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALFA's revenue (8.7% per year) is forecast to grow faster than the Swedish market (5.1% per year).

High Growth Revenue: ALFA's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALFA's Return on Equity is forecast to be low in 3 years time (18.6%).


Past Performance

How has Alfa Laval performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALFA has high quality earnings.

Growing Profit Margin: ALFA's current net profit margins (9.7%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ALFA's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: ALFA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALFA had negative earnings growth (-12.7%) over the past year, making it difficult to compare to the Machinery industry average (41.4%).


Return on Equity

High ROE: ALFA's Return on Equity (12.9%) is considered low.


Financial Health

How is Alfa Laval's financial position?


Financial Position Analysis

Short Term Liabilities: ALFA's short term assets (SEK25.8B) exceed its short term liabilities (SEK23.9B).

Long Term Liabilities: ALFA's short term assets (SEK25.8B) exceed its long term liabilities (SEK9.3B).


Debt to Equity History and Analysis

Debt Level: ALFA's net debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: ALFA's debt to equity ratio has reduced from 68.7% to 29.2% over the past 5 years.

Debt Coverage: ALFA's debt is well covered by operating cash flow (73.9%).

Interest Coverage: ALFA's interest payments on its debt are well covered by EBIT (53.2x coverage).


Balance Sheet


Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALFA's dividend (1.67%) is higher than the bottom 25% of dividend payers in the Swedish market (0.96%).

High Dividend: ALFA's dividend (1.67%) is low compared to the top 25% of dividend payers in the Swedish market (3.27%).


Stability and Growth of Payments

Stable Dividend: ALFA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ALFA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.8%), ALFA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALFA's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Tom Erixon (61 yo)

5.83yrs

Tenure

kr31,576,000

Compensation

Mr. Tom Erixon, LLB, MBA, is the Chairman of the Board at Afry AB (formerly known as ÅF Pöyry AB (publ)) since June 3, 2021. He served as a Director of Boliden AB (publ) since 2013. He is President and CEO...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.50M) is above average for companies of similar size in the Swedish market ($USD2.31M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALFA's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: ALFA's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alfa Laval AB (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: Alfa Laval AB (publ)
  • Ticker: ALFA
  • Exchange: OM
  • Founded: 1883
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: kr138.462b
  • Shares outstanding: 415.30m
  • Website: https://www.alfalaval.com

Number of Employees


Location

  • Alfa Laval AB (publ)
  • Rudeboksvägen 1
  • Lund
  • Skåne County
  • 226 55
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 18:43
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.