Alfa Laval
Market Cap
kr73.2b
Last Updated
2020/03/27 21:09 UTC
Data Sources
Company Financials +
Executive Summary
Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2.3% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has Alfa Laval's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALFA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.1%
ALFA
11.3%
SE Machinery
4.5%
SE Market
1 Year Return
-18.3%
ALFA
-4.9%
SE Machinery
-10.2%
SE Market
Return vs Industry: ALFA underperformed the Swedish Machinery industry which returned -0% over the past year.
Return vs Market: ALFA underperformed the Swedish Market which returned -7.1% over the past year.
Shareholder returns
| ALFA | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.1% | 11.3% | 4.5% |
| 30 Day | -23.8% | -20.6% | -23.1% |
| 90 Day | -27.9% | -25.2% | -23.8% |
| 1 Year | -16.4%-18.3% | -1.7%-4.9% | -7.4%-10.2% |
| 3 Year | 10.2%3.1% | 8.5%-9.0% | -0.2%-15.4% |
| 5 Year | 16.7%3.2% | 34.7%6.0% | 8.5%-14.7% |
Price Volatility Vs. Market
How volatile is Alfa Laval's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Is Alfa Laval AB (publ) (STO:ALFA) Better Than Average At Deploying Capital?2 weeks ago | Simply Wall St
What Is Alfa Laval's (STO:ALFA) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
Alfa Laval AB (publ) (STO:ALFA) Insiders Increased Their HoldingsValuation
Is Alfa Laval undervalued compared to its fair value and its price relative to the market?
23.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALFA (SEK174.4) is trading below our estimate of fair value (SEK228.74)
Significantly Below Fair Value: ALFA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALFA is good value based on its PE Ratio (13.3x) compared to the Machinery industry average (13.5x).
PE vs Market: ALFA is good value based on its PE Ratio (13.3x) compared to the Swedish market (14.4x).
Price to Earnings Growth Ratio
PEG Ratio: ALFA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ALFA is overvalued based on its PB Ratio (2.7x) compared to the SE Machinery industry average (2.5x).
Next Steps
Future Growth
How is Alfa Laval forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
-2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALFA's earnings are forecast to decline over the next 3 years (-2.3% per year).
Earnings vs Market: ALFA's earnings are forecast to decline over the next 3 years (-2.3% per year).
High Growth Earnings: ALFA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ALFA's revenue is expected to decline over the next 3 years (-0.7% per year).
High Growth Revenue: ALFA's revenue is forecast to decline over the next 3 years (-0.7% 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 (15.6%).
Next Steps
Past Performance
How has Alfa Laval performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALFA has high quality earnings.
Growing Profit Margin: ALFA's current net profit margins (11.8%) are higher than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: ALFA's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: ALFA's earnings growth over the past year (21.4%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: ALFA earnings growth over the past year (21.4%) exceeded the Machinery industry -2.5%.
Return on Equity
High ROE: ALFA's Return on Equity (19.9%) is considered low.
Next Steps
Financial Health
How is Alfa Laval's financial position?
Financial Position Analysis
Short Term Liabilities: ALFA's short term assets (SEK29.1B) exceed its short term liabilities (SEK21.4B).
Long Term Liabilities: ALFA's short term assets (SEK29.1B) exceed its long term liabilities (SEK15.3B).
Debt to Equity History and Analysis
Debt Level: ALFA's debt to equity ratio (27.2%) is considered satisfactory.
Reducing Debt: ALFA's debt to equity ratio has reduced from 103.9% to 27.2% over the past 5 years.
Debt Coverage: ALFA's debt is well covered by operating cash flow (69.2%).
Interest Coverage: ALFA's interest payments on its debt are well covered by EBIT (40.6x coverage).
Balance Sheet
Inventory Level: ALFA has a high level of physical assets or inventory.
Debt Coverage by Assets: ALFA's debt is covered by short term assets (assets are 3.9x debt).
Next Steps
Dividend
What is Alfa Laval's current dividend yield, its reliability and sustainability?
3.15%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ALFA's dividend (3.15%) is higher than the bottom 25% of dividend payers in the Swedish market (2.1%).
High Dividend: ALFA's dividend (3.15%) is low compared to the top 25% of dividend payers in the Swedish market (6.51%).
Stability and Growth of Payments
Stable Dividend: ALFA's dividends per share have been stable 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 reasonably low payout ratio (42.1%), ALFA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALFA's dividends in 3 years are forecast to be well covered by earnings (46% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Tom Erixon (59yo)
4s
Tenure
kr23,021,000
Compensation
Mr. Tom Erixon serves as a Director of Boliden AB (publ) 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 partn ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD2.32M) is above average for companies of similar size in the Swedish market ($USD1.37M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 4yrs | kr23.02m | 0.022% SEK15.9m | |
| Chief Financial Officer | 2.08yrs | no data | no data | |
| President of Operations Division | 3.17yrs | no data | 0.00024% SEK175.6k | |
| Chief Information Officer | 1.92yrs | no data | no data | |
| Investor Relations Manager | no data | no data | no data | |
| General Counsel & Secretary to the Board of Directors | 5.17yrs | no data | no data | |
| Senior Vice President of Corporate Communications | 21.17yrs | no data | 0.016% SEK11.5m | |
| Vice President of Corporate Development | no data | no data | no data | |
| Senior Vice President of Global Sales & Service | no data | no data | 0.0015% SEK1.1m | |
| Senior Vice President of Human Resources | 1.58yrs | no data | no data |
3.2yrs
Average Tenure
53yo
Average Age
Experienced Management: ALFA's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 7.17yrs | kr610.00k | 0.0048% SEK3.5m | |
| Director | 20.17yrs | kr610.00k | no data | |
| Director | 19.58yrs | kr735.00k | no data | |
| Independent Director | 2.17yrs | kr685.00k | 0.00095% SEK695.0k | |
| Chairman | 16.83yrs | kr1.73m | 0.0095% SEK7.0m | |
| Independent Director | 2.92yrs | kr685.00k | 0.00048% SEK351.1k | |
| Director | 0.92yr | no data | no data | |
| Deputy Employee Representative Director | 15.17yrs | no data | no data | |
| Deputy Employee Representative Director | 11.17yrs | no data | no data | |
| Director | 0.92yr | no data | no data |
9.2yrs
Average Tenure
58yo
Average Age
Experienced Board: ALFA's board of directors are considered experienced (9.2 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 company bio, 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
- Market Cap: kr73.153b
- Shares outstanding: 419.46m
- Website: https://www.alfalaval.com
Number of Employees
Location
- Alfa Laval AB (publ)
- Rudeboksvägen 1
- Lund
- Skåne County
- 226 55
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALFA | OM (OMX Nordic Exchange Stockholm) | Yes | Common Stock | SE | SEK | May 2002 |
| AA9 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2002 |
| 0NNF | LSE (London Stock Exchange) | Yes | Common Stock | GB | SEK | May 2002 |
| ALFV.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | May 2002 |
| ALFAS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | SEK | May 2002 |
| ALFV.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
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 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 exhaust gas economizers, and oil/gas-fired composite steam and steam boilers; oil/gas-fired hot water and thermal, and waste heat recovery heaters; burners; air heat exchangers; plate and tubular heat exchangers; and scraped surface heat exchangers. In addition, it offers separation products comprising pump control systems; filters and strainers; decanters and separators; cylindrical filter baskets and filtering elements; and membranes. Further, the company provides process solutions consisting of ballast water treatment, brewery, bulk, exhaust gas cleaning, evaporation, filling, fresh water, fuel conditioning, marine exhaust gas, olive oil, protein, refrigeration, safety, thermal, and edible oil 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/27 21:09 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.