Atlas Copco (OM:ATCO A) - Share price, News & Analysis

Q: What is the Fair Price of ATCO A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ATCO A (SEK94.33) is trading below our estimate of [[fair value]] (SEK133.88)

ATCO A fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

ATCO A Stock Overview

Atlas Copco AB, together with its subsidiaries, provides productivity solutions.

Rewards

Trading at 29.5% below our estimate of its fair value

Earnings are forecast to grow 6.87% per year

Earnings have grown 5.8% per year over the past 5 years

Pays a reliable dividend of 2.01%

Risk Analysis

ATCO A passed our risk checks.

Atlas Copco Competitors

Sandvik

OM:SAND

kr210.1b

Alfa Laval

OM:ALFA

kr101.8b

Indutrade

OM:INDT

kr66.8b

AB SKF

OM:SKF B

kr68.9b

Price History & Performance

Summary of all time highs, changes and price drops for Atlas Copco
Historical stock prices
Current Share Price	kr94.33
52 Week High	kr162.50
52 Week Low	kr94.33
Beta	0.92
1 Month Change	-11.97%
3 Month Change	-23.51%
1 Year Change	-27.88%
3 Year Change	27.13%
5 Year Change	16.82%
Change since IPO	3,920.67%

Recent News & Updates

Jun 13

Is Now The Time To Look At Buying Atlas Copco AB (STO:ATCO A)?

Today we're going to take a look at the well-established Atlas Copco AB ( STO:ATCO A ). The company's stock received a...

Shareholder Returns

	ATCO A	SE Machinery	SE Market
7D	-2.5%	-4.5%	-1.3%
1Y	-27.9%	-23.8%	-23.6%

Return vs Industry: ATCO A underperformed the Swedish Machinery industry which returned -23.8% over the past year.

Return vs Market: ATCO A underperformed the Swedish Market which returned -23.6% over the past year.

Price Volatility

Is ATCO A's price volatile compared to industry and market?
ATCO A volatility
ATCO A Average Weekly Movement	5.2%
Machinery Industry Average Movement	6.0%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.2%
10% least volatile stocks in SE Market	4.7%

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

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

About the Company

Founded	Employees	CEO	Website
1873	43,989	Mats Rahmström	https://www.atlascopcogroup.com

Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries.

Atlas Copco Fundamentals Summary

How do Atlas Copco's earnings and revenue compare to its market cap?
ATCO A fundamental statistics
Market Cap	kr443.28b
Earnings (TTM)	kr19.23b
Revenue (TTM)	kr114.98b

23.9x

P/E Ratio

4.0x

P/S Ratio

Is ATCO A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATCO A income statement (TTM)
Revenue	kr114.98b
Cost of Revenue	kr66.53b
Gross Profit	kr48.44b
Other Expenses	kr29.22b
Earnings	kr19.23b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	3.95
Gross Margin	42.13%
Net Profit Margin	16.72%
Debt/Equity Ratio	33.9%

How did ATCO A perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

48%

Payout Ratio

Does ATCO A pay a reliable dividends?

See ATCO A dividend history and benchmarks

When do you need to buy ATCO A by to receive an upcoming dividend?
Atlas Copco dividend dates
Ex Dividend Date	Oct 20 2022
Dividend Pay Date	Oct 26 2022
Days until Ex dividend	114 days
Days until Dividend pay date	120 days

Does ATCO A pay a reliable dividends?

See ATCO A dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is ATCO A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATCO A?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ATCO A. This is calculated by dividing ATCO A's market cap by their current preferred multiple.
What is ATCO A's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr443.28b

ATCO A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.9x
Enterprise Value/EBITDA	15.8x
PEG Ratio	3.5x

Price to Earnings Ratio vs Peers

How does ATCO A's PE Ratio compare to its peers?

ATCO A PE Ratio vs Peers

The above table shows the PE ratio for ATCO A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.7x
SAND Sandvik	14x	7.5%	kr210.1b
ALFA Alfa Laval	22.3x	11.0%	kr101.8b
INDT Indutrade	29.4x	8.4%	kr66.8b
SKF B AB SKF	9x	9.3%	kr68.9b
ATCO A Atlas Copco	23.9x	6.9%	kr443.3b

Forward PE

Price-To-Earnings vs Peers: ATCO A is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (18.7x).

Price to Earnings Ratio vs Industry

How does ATCO A's PE Ratio compare vs other companies in the SE Machinery Industry?

Price-To-Earnings vs Industry: ATCO A is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the Swedish Machinery industry average (16.4x)

Price to Earnings Ratio vs Fair Ratio

What is ATCO A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATCO A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.9x
Fair PE Ratio	29.4x

Price-To-Earnings vs Fair Ratio: ATCO A is good value based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (29.4x).

Share Price vs Fair Value

What is the Fair Price of ATCO A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATCO A (SEK94.33) is trading below our estimate of fair value (SEK133.88)

Significantly Below Fair Value: ATCO A is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: ATCO A is poor value based on its PEG Ratio (3.5x)

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Future Growth

How is Atlas Copco forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATCO A's forecast earnings growth (6.9% per year) is above the savings rate (0.3%).

Earnings vs Market: ATCO A's earnings (6.9% per year) are forecast to grow slower than the Swedish market (9.8% per year).

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

Revenue vs Market: ATCO A's revenue (6.5% per year) is forecast to grow faster than the Swedish market (5.6% per year).

High Growth Revenue: ATCO A's revenue (6.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ATCO A's Return on Equity is forecast to be high in 3 years time (26.2%)

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Past Performance

How has Atlas Copco performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATCO A has high quality earnings.

Growing Profit Margin: ATCO A's current net profit margins (16.7%) are higher than last year (15%).

Past Earnings Growth Analysis

Earnings Trend: ATCO A's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: ATCO A's earnings growth over the past year (27.7%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: ATCO A earnings growth over the past year (27.7%) underperformed the Machinery industry 46.8%.

Return on Equity

High ROE: ATCO A's Return on Equity (25.8%) is considered high.

Discover strong past performing companies

Financial Health

How is Atlas Copco's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATCO A's short term assets (SEK77.7B) exceed its short term liabilities (SEK45.9B).

Long Term Liabilities: ATCO A's short term assets (SEK77.7B) exceed its long term liabilities (SEK27.6B).

Debt to Equity History and Analysis

Debt Level: ATCO A's net debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: ATCO A's debt to equity ratio has reduced from 44% to 33.9% over the past 5 years.

Debt Coverage: ATCO A's debt is well covered by operating cash flow (85.1%).

Interest Coverage: ATCO A's interest payments on its debt are well covered by EBIT (180.8x coverage).

Balance Sheet

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Dividend

What is Atlas Copco current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.01%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ATCO A's dividend (2.01%) is higher than the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: ATCO A's dividend (2.01%) is low compared to the top 25% of dividend payers in the Swedish market (5.41%).

Stability and Growth of Payments

Stable Dividend: ATCO A's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.1%), ATCO A's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.6%), ATCO A's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Mats Rahmström (56 yo)

5.17yrs

Tenure

kr43,698,000

Compensation

Mr. Mats Rahmstrom has been the Chief Executive Officer and President of Atlas Copco AB since April 27, 2017. Mr. Rahmstrom served as Senior Executive Vice President and Business Area President for Industr...

CEO Compensation Analysis

Compensation vs Market: Mats's total compensation ($USD4.32M) is above average for companies of similar size in the Swedish market ($USD2.58M).

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

Leadership Team

Experienced Management: ATCO A's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: ATCO A's board of directors are considered experienced (4.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: ATCO A 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31