Atlas Copco

OM:ATCO A

Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

ATCO A

SEK329B

Market Cap

Add to portfolio

Last updated 2019/05/19 21:25

Company description

Atlas Copco AB, through its subsidiaries, provides productivity solutions worldwide. The last earnings update was 24 days ago. More info.

Find similar companies

Add to Portfolio Compare Print

ATCO A Share Price and Events

7 Day Returns

-0%

OM:ATCO A

0.2%

SE Machinery

0.8%

SE Market

1 Year Returns

-23.6%

OM:ATCO A

-15%

SE Machinery

-0.6%

SE Market

ATCO A Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Atlas Copco (ATCO A)	-0%	-1.3%	11.7%	-23.6%	31.4%	42.2%
SE Machinery	0.2%	-5.6%	6.2%	-15%	44.9%	36.9%
SE Market	0.8%	-2.3%	2.4%	-0.6%	14.3%	18.2%

1 Year Return vs Industry and Market

ATCO A underperformed the Machinery industry which returned -15% over the past year.
ATCO A underperformed the Market in Sweden which returned -0.6% over the past year.

Price Volatility

ATCO A

Industry

5yr Volatility vs Market

Related Companies

Value

Is Atlas Copco 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 Atlas Copco 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 Atlas Copco.

OM:ATCO A Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 20 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	6.8%
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:ATCO A
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)) = 1.052 (1 + (1- 22%) (5.73%))	1.066
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.07
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 0.43% + (1.066 * 5.96%)	6.79%

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

The calculations below outline how an intrinsic value for Atlas Copco 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:ATCO A DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (SEK, Millions)	Source	Present Value Discounted (@ 6.79%)
2019	15,606.20	Analyst x11	14,614.20
2020	16,646.21	Analyst x11	14,597.26
2021	17,790.65	Analyst x9	14,609.17
2022	18,596.92	Est @ 4.53%	14,300.55
2023	19,211.12	Est @ 3.3%	13,833.83
2024	19,680.29	Est @ 2.44%	13,270.86
2025	20,042.37	Est @ 1.84%	12,655.94
2026	20,326.60	Est @ 1.42%	12,019.55
2027	20,554.87	Est @ 1.12%	11,381.93
2028	20,743.23	Est @ 0.92%	10,756.12
Present value of next 10 years cash flows			SEK132,039.41

OM:ATCO A DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = SEK20,743.23 × (1 + 0.43%) ÷ (6.79% – 0.43%)	SEK327,897.52
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = SEK327,897.52 ÷ (1 + 6.79%)¹⁰	SEK170,026.82

OM:ATCO A Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = SEK132,039.41 + SEK170,026.82	SEK302,066.23
Equity Value per Share (SEK)	= Total value / Shares Outstanding = SEK302,066.23 / 1,212.70	SEK249.09

OM:ATCO A Discount to Share Price
	Calculation	Result
Value per share (SEK)	From above.	SEK249.09
Current discount	Discount to share price of SEK278.90 = -1 x (SEK278.90 - SEK249.09) / SEK249.09	-12%

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

The current share price of Atlas Copco is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

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 Atlas Copco's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Atlas Copco's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

OM:ATCO A PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2019-03-31) in SEK	SEK13.54
OM:ATCO A Share Price **	OM (2019-05-17) in SEK	SEK278.9
Sweden Machinery Industry PE Ratio	Median Figure of 17 Publicly-Listed Machinery Companies	16.29x
Sweden Market PE Ratio	Median Figure of 323 Publicly-Listed Companies	16.89x

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

** Primary Listing of Atlas Copco.

OM:ATCO A PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= OM:ATCO A Share Price ÷ EPS (both in SEK) = 278.9 ÷ 13.54	20.6x

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

Atlas Copco is overvalued based on earnings compared to the SE Machinery industry average.
Atlas Copco is overvalued based on earnings compared to the Sweden market.

Price based on expected Growth

Does Atlas Copco's expected growth come at a high price?

Raw Data

OM:ATCO A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	20.6x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts	5.5%per year
Sweden Machinery Industry PEG Ratio	Median Figure of 14 Publicly-Listed Machinery Companies	2.71x
Sweden Market PEG Ratio	Median Figure of 235 Publicly-Listed Companies	1.36x

*Line of best fit is calculated by linear regression .

OM:ATCO A PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 20.6x ÷ 5.5%	3.74x

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

Atlas Copco is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Atlas Copco's assets?

Raw Data

OM:ATCO A PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2019-03-31) in SEK	SEK39.09
OM:ATCO A Share Price *	OM (2019-05-17) in SEK	SEK278.9
Sweden Machinery Industry PB Ratio	Median Figure of 27 Publicly-Listed Machinery Companies	3.01x
Sweden Market PB Ratio	Median Figure of 567 Publicly-Listed Companies	2.46x

OM:ATCO A PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= OM:ATCO A Share Price ÷ Book Value per Share (both in SEK) = 278.9 ÷ 39.09	7.14x

* Primary Listing of Atlas Copco.

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

Atlas Copco is overvalued based on assets compared to the SE Machinery industry average.

Value checks

We assess Atlas Copco's value by looking at:

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. )
Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)

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

Future Performance

How is Atlas Copco expected to perform in the next 1 to 3 years based on estimates from 20 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!

5.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Atlas Copco expected to grow at an attractive rate?

Atlas Copco's earnings growth is expected to exceed the low risk savings rate of 0.4%.

Growth vs Market Checks

Atlas Copco's earnings growth is positive but not above the Sweden market average.
Atlas Copco's revenue growth is positive but not above the Sweden market average.

Annual Growth Rates Comparison

Raw Data

OM:ATCO A Future Growth Rates Data Sources
Data Point	Source	Value (per year)
OM:ATCO A Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts	5.5%
OM:ATCO A Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts	4%
Sweden Machinery Industry Earnings Growth Rate	Market Cap Weighted Average	2.1%
Sweden Machinery Industry Revenue Growth Rate	Market Cap Weighted Average	2.2%
Sweden Market Earnings Growth Rate	Market Cap Weighted Average	8.6%
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:ATCO A Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (1 month ago)	See Below
Future Estimates	Average of up to 20 Analyst Estimates (S&P Global)	See Below

All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

OM:ATCO A Future Estimates Data
Date (Data in SEK Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	108,503	20,722	17,920	15
2020-12-31	103,489	19,783	16,858	20
2019-12-31	100,171	18,325	15,936	20

OM:ATCO A Past Financials Data
Date (Data in SEK Millions)	Revenue	Cash Flow	Net Income *
2019-03-31	97,638	17,753	16,429
2018-12-31	95,363	16,814	16,065
2018-09-30	123,455	18,419	18,132
2018-06-30	120,813	20,595	17,786
2018-03-31	86,981	19,847	13,083
2017-12-31	85,653	21,380	12,639
2017-09-30	91,503	20,864	13,716
2017-06-30	96,313	19,941	13,600
2017-03-31	99,481	18,008	13,762
2016-12-31	101,356	18,247	13,768
2016-09-30	95,255	17,194	10,609
2016-06-30	95,135	17,089	10,980

*GAAP earnings excluding extraordinary items.

High Growth Checks

Atlas Copco's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Atlas Copco's revenue is expected to grow by 4% 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:ATCO A 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 20 Analyst Estimates (S&P Global)	See Below

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

OM:ATCO A Future Estimates Data
Date (Data in SEK Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	14.71	16.32	13.13	14.00
2020-12-31	13.81	15.11	12.71	18.00
2019-12-31	13.14	13.84	12.60	19.00

OM:ATCO A Past Financials Data
Date (Data in SEK Millions)	EPS *
2019-03-31	13.54
2018-12-31	13.24
2018-09-30	14.94
2018-06-30	14.65
2018-03-31	10.78
2017-12-31	10.41
2017-09-30	11.29
2017-06-30	11.19
2017-03-31	11.32
2016-12-31	11.32
2016-09-30	8.72
2016-06-30	9.03

*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.

Atlas Copco is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Future performance checks

We assess Atlas Copco's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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.
Atlas Copco has a total score of 2/6, 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 Atlas Copco 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 Atlas Copco'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.

Atlas Copco's year on year earnings growth rate has been positive over the past 5 years.
Atlas Copco's 1-year earnings growth exceeds its 5-year average (25.6% vs 7.2%)
Atlas Copco's earnings growth has not exceeded the SE Machinery industry average in the past year (25.6% vs 28.9%).

Earnings and Revenue History

Atlas Copco'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 Atlas Copco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ATCO A 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	97,638.00	16,429.00	17,900.00	3,254.00
2018-12-31	95,363.00	16,065.00	17,271.00	3,140.00
2018-09-30	123,455.00	18,132.00	20,884.00	3,806.00
2018-06-30	120,813.00	17,786.00	20,430.00	3,769.00
2018-03-31	86,981.00	13,083.00	15,672.00	2,844.00
2017-12-31	85,653.00	12,639.00	15,546.00	2,757.00
2017-09-30	91,503.00	13,716.00	16,742.00	2,922.00
2017-06-30	96,313.00	13,600.00	17,400.00	2,940.00
2017-03-31	99,481.00	13,762.00	17,726.00	2,989.00
2016-12-31	101,356.00	13,768.00	17,882.00	3,068.00
2016-09-30	95,255.00	10,609.00	16,861.00	2,830.00
2016-06-30	95,135.00	10,980.00	16,386.00	2,940.00
2016-03-31	96,681.00	11,433.00	16,484.00	2,987.00
2015-12-31	98,973.00	11,771.00	16,966.00	3,021.00
2015-09-30	101,939.00	14,020.00	17,049.00	3,149.00
2015-06-30	99,806.00	13,093.00	16,920.00	3,034.00
2015-03-31	97,043.00	12,649.00	16,413.00	2,957.00
2014-12-31	93,721.00	12,169.00	15,516.00	2,857.00
2014-09-30	89,627.00	11,738.00	14,797.00	2,705.00
2014-06-30	86,589.00	11,911.00	14,163.00	2,466.00
2014-03-31	85,084.00	11,840.00	13,572.00	2,269.00
2013-12-31	83,888.00	12,072.00	13,153.00	2,105.00
2013-09-30	85,370.00	12,583.00	13,280.00	2,030.00
2013-06-30	86,912.00	13,016.00	13,251.00	1,987.00
2013-03-31	88,506.00	13,500.00	13,432.00	2,027.00
2012-12-31	90,533.00	13,920.00	13,658.00	2,015.00
2012-09-30	90,075.00	13,875.00	13,629.00	2,009.00
2012-06-30	88,720.00	13,987.00	13,162.00	1,957.00

*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.

Atlas Copco has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
Atlas Copco used its assets more efficiently than the SE Machinery industry average last year based on Return on Assets.
Atlas Copco has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Machinery industry

Past performance checks

We assess Atlas Copco's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Atlas Copco has a total score of 5/6, 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 Atlas Copco'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 Atlas Copco's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Atlas Copco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Atlas Copco's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Atlas Copco'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 2.9x 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 Atlas Copco Company Filings, last reported 1 month ago.

OM:ATCO A Past Debt and Equity Data
Date (Data in SEK Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2019-03-31	47,456.00	18,823.00	13,592.00
2018-12-31	42,472.00	20,381.00	16,414.00
2018-09-30	37,377.00	20,661.00	12,314.00
2018-06-30	35,002.00	20,968.00	9,619.00
2018-03-31	67,591.00	22,966.00	23,335.00
2017-12-31	60,601.00	25,148.00	24,558.00
2017-09-30	54,782.00	24,615.00	21,502.00
2017-06-30	51,792.00	25,184.00	16,304.00
2017-03-31	56,593.00	25,058.00	16,836.00
2016-12-31	53,177.00	24,722.00	11,719.00
2016-09-30	50,502.00	24,854.00	12,460.00
2016-06-30	46,220.00	23,912.00	11,061.00
2016-03-31	49,236.00	23,240.00	13,129.00
2015-12-31	46,750.00	22,989.00	9,138.00
2015-09-30	46,691.00	23,392.00	9,953.00
2015-06-30	43,074.00	26,203.00	8,211.00
2015-03-31	54,995.00	23,660.00	12,485.00
2014-12-31	50,753.00	24,466.00	9,710.00
2014-09-30	44,677.00	25,662.00	8,270.00
2014-06-30	40,220.00	25,727.00	7,307.00
2014-03-31	42,227.00	25,667.00	11,845.00
2013-12-31	39,794.00	25,592.00	17,910.00
2013-09-30	36,066.00	25,427.00	17,702.00
2013-06-30	34,031.00	26,250.00	15,639.00
2013-03-31	36,157.00	24,930.00	18,591.00
2012-12-31	34,185.00	21,052.00	12,434.00
2012-09-30	31,386.00	21,102.00	10,167.00
2012-06-30	29,427.00	21,846.00	5,468.00

Atlas Copco's level of debt (39.7%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (60.8% vs 39.7% today).
Debt is well covered by operating cash flow (94.3%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 40.2x coverage).

Show me more healthy companies in the Machinery industry

Financial health checks

We assess Atlas Copco's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
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 Atlas Copco'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

2.26%

Current annual income from Atlas Copco dividends. Estimated to be 2.54% next year.

If you bought SEK2,000 of Atlas Copco shares you are expected to receive SEK45 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?

Atlas Copco's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.79%).
Atlas Copco's dividend is below the markets top 25% of dividend payers in Sweden (4.39%).

Upcoming dividend payment

Purchase Atlas Copco before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.

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:ATCO A 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 20 Analyst Estimates (S&P Global)	See Below
Sweden Machinery Industry Average Dividend Yield	Market Cap Weighted Average of 16 Stocks	2.8%
Sweden Market Average Dividend Yield	Market Cap Weighted Average of 243 Stocks	3.2%
Sweden Minimum Threshold Dividend Yield	10th Percentile	1.1%
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:ATCO A Future Dividends Estimate Data
Date (Data in SEK)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	7.48	16.00
2020-12-31	7.13	20.00
2019-12-31	6.73	19.00

OM:ATCO A Past Annualized Dividends Data
Date (Data in SEK)	Dividend per share (annual)	Avg. Yield (%)
2019-03-08	6.300	2.358
2019-01-28	6.300	2.564
2018-03-20	7.000	2.711
2017-03-22	6.800	2.026
2016-04-27	6.300	2.493
2015-01-29	6.000	2.669
2014-04-30	5.500	2.681
2013-01-31	5.500	3.071
2012-04-30	5.000	3.160
2011-04-21	4.000	2.664
2010-04-29	3.000	2.208

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

Whilst dividend payments have been stable, Atlas Copco has been paying a dividend for less than 10 years.
Dividend payments have increased, but Atlas Copco only paid a dividend in the past 9 years.

Current Payout to shareholders

What portion of Atlas Copco's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (2.1x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).

Income/ dividend checks

We assess Atlas Copco's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Atlas Copco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

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

Management

What is the CEO of Atlas Copco'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

Mats Rahmström

COMPENSATION	SEK17,020,000
AGE	53
TENURE AS CEO	2.1 years

CEO Bio

Mr. Mats Rahmström has been the Chief Executive Officer and President of Atlas Copco AB since April 27, 2017. Mr. Rahmström served as Senior Executive Vice President and Business Area President for Industrial Technique at Atlas Copco AB from June 1, 2008 to April 26, 2017. Mr. Rahmström has been with Atlas Copco in 1988. He serves as President of the Atlas Copco Tools General Industry division within Industrial Technique. Previously, he has held positions in sales, service, marketing and general management. From 1998 to 2006, he served as the General Manager for customer centers in Sweden, Canada and Great Britain. He has been a Director of Atlas Copco AB since April 26, 2017. He serves as a Director of Permobil AB. Mr. Rahmström holds an MBA from the Henley Management College, Great Britain in 2005.

CEO Compensation

Mats's compensation has been consistent with company performance over the past year.
Mats's remuneration is about average for companies of similar size in Sweden.

Management Team Tenure

Average tenure and age of the Atlas Copco management team in years:

2.3

Average Tenure

57.5

Average Age

The tenure for the Atlas Copco management team is about average.

Management Team

Mats Rahmström

TITLE

President

COMPENSATION

SEK17M

AGE

53

TENURE

2.1 yrs

Joeri Ooms

TITLE

President of Industrial Air

Hans Meyer

TITLE

CFO and Senior VP of Controlling & Finance

AGE

63

TENURE

56

TENURE

1 yrs

58.5

Average Age

The tenure for the Atlas Copco board of directors is about average.

Recent Insider Trading

Atlas Copco insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (SEK)	Value (SEK)
22. Feb 19	Sell	Andrew Walker	Individual	21. Feb 19	21. Feb 19	-1,722	SEK253.76	SEK-436,975
05. Feb 19	Buy	Investor AB (publ)	Company	05. Feb 19	05. Feb 19	108,530	SEK240.83	SEK26,136,738
22. Nov 18	Buy	Andrew Walker	Individual	19. Nov 18	19. Nov 18	1,795	SEK208.37	SEK374,024
21. Nov 18	Buy	Vagner Rego	Individual	15. Nov 18	15. Nov 18	1,840	SEK213.50	SEK392,840
17. Nov 18	Buy	Mats Rahmström	Individual	15. Nov 18	15. Nov 18	3,990	SEK213.50	SEK851,865
16. Nov 18	Buy	Henrik Elmin	Individual	15. Nov 18	15. Nov 18	600	SEK213.50	SEK128,100
16. Nov 18	Buy	Håkan Osvald	Individual	15. Nov 18	15. Nov 18	1,379	SEK213.50	SEK294,417
20. Nov 18	Buy	Andrew Walker	Individual	19. Nov 18	19. Nov 18	500	SEK207.00	SEK103,500
15. Nov 18	Buy	Geert Follens	Individual	12. Nov 18	12. Nov 18	2,365	SEK216.86	SEK512,874
29. Aug 18	Sell	Andrew Walker	Individual	29. Aug 18	29. Aug 18	-35,741	SEK264.00	SEK-9,435,624
04. Jun 18	Sell	Andrew Walker	Individual	01. Jun 18	01. Jun 18	-1,811	SEK352.60	SEK-638,559

Management checks

We assess Atlas Copco's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

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

What Kind Of Shareholder Owns Most Atlas Copco AB (STO:ATCO A) Stock?

See our latest analysis for Atlas Copco OM:ATCO A Ownership Summary, May 12th 2019 What Does The Institutional Ownership Tell Us About Atlas Copco? … We can see that Atlas Copco does have institutional investors; and they hold 54% of the stock. … Insider Ownership Of Atlas Copco The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St - 1 week ago – Full article

Does This Valuation Of Atlas Copco AB (STO:ATCO A) Imply Investors Are Overpaying?

In this article we are going to estimate the intrinsic value of Atlas Copco AB (STO:ATCO A). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St - 2 weeks ago – Full article

1 Days Left Before Atlas Copco AB (STO:ATCO A) Will Be Trading Ex-Dividend

Important news for shareholders and potential investors in Atlas Copco AB (STO:ATCO A): The dividend payment of kr3.15 per share will be distributed to shareholders on 03 May 2019, and the stock will begin trading ex-dividend at an earlier date, 26 April 2019. … Below, I will explain how holding Atlas Copco can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Based on future earnings growth, will it be able to continue to payout dividend at the current rate

Simply Wall St - 3 weeks ago – Full article

Here's Why We Think Atlas Copco (STO:ATCO A) Is Well Worth Watching

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Atlas Copco (STO:ATCO A). … How Quickly Is Atlas Copco Increasing Earnings Per Share. … Atlas Copco maintained stable EBIT margins over the last year, all while growing revenue 11% to kr95b.

Simply Wall St - 1 month ago – Full article

Atlas Copco AB's (STO:ATCO A) Earnings Grew 27%, Did It Beat Long-Term Trend?

When Atlas Copco AB (STO:ATCO A) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Understanding how Atlas Copco performed requires a benchmark rather than trying to assess a standalone number at one point in time. … ATCO A's trailing twelve-month earnings (from 31 December 2018) of kr16b has.

Simply Wall St - 1 month ago – Full article

Atlas Copco AB (STO:ATCO A) Earns Among The Best Returns In Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St - 1 month ago – Full article

Atlas Copco AB (STO:ATCO A): What's The Analyst Consensus Outlook?

The latest earnings update Atlas Copco AB (STO:ATCO A) released in December 2018a … showed

Simply Wall St - 2 months ago – Full article

Is Atlas Copco AB (STO:ATCO A) A Financially Sound Company?

The size of Atlas Copco AB (STO:ATCO A), a kr300b large-cap, often attracts investors seeking a reliable investment in the stock market. … I will provide an overview of Atlas Copco’s financial liquidity and leverage to give you an idea of Atlas Copco’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St - 2 months ago – Full article

Why Atlas Copco AB (STO:ATCO A) Could Be Worth Watching

The company's stock. … received a lot of attention from a substantial price increase on the OM over the last few months … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock.

Simply Wall St - 2 months ago – Full article

Company Info

Description

Atlas Copco AB, through its subsidiaries, provides productivity solutions worldwide. 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 for use in manufacturing, oil and gas, and process industries. The company also provides pneumatic and hydraulic assembly tools, electric assembly tools, control systems and associated software packages, dispensing equipment for adhesives and sealants, and self-pierce riveting tools and rivets for the motor vehicle industry; basic fastening tools, drills, and grinders; and impact wrenches, percussive tools, drills, sanders, and grinders for vehicle service professionals. In addition, it offers portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, construction, and demolition applications, as well as offers specialty rental services. The company was founded in 1873 and is headquartered in Nacka, Sweden.

Details

Name:	Atlas Copco AB
Ticker:	ATCO A
Exchange:	OM
Founded:	1873
Market Cap:	SEK328,507,441,547
Shares outstanding:	1,212,696,048
Website:	http://www.atlascopcogroup.com
Address:	Atlas Copco AB Sickla Industriväg 19, Nacka, Stockholm County, Sweden

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
OM	ATCO A	Series A Shares	OMX Nordic Exchange Stockholm	SE	SEK	02. Jan 1980
OTCPK	ATLK.F	Series A Shares	Pink Sheets LLC	US	USD	02. Jan 1980
DB	ACO2	Series A Shares	Deutsche Boerse AG	DE	EUR	02. Jan 1980
LSE	0XXT	Series A Shares	London Stock Exchange	GB	SEK	02. Jan 1980
BMV	ACOF N	Series A Shares	Bolsa Mexicana de Valores	MX	MXN	02. Jan 1980
BATS-CHIXE	ATCOAS	Series A Shares	BATS 'Chi-X Europe'	GB	SEK	02. Jan 1980
BATS-CHIXE	ATCOAS	Series A Shares	BATS 'Chi-X Europe'	GB	SEK	02. Jan 1980
OTCPK	ATLC.Y	SP ADR B NEW	Pink Sheets LLC	US	USD	25. Jun 2003
OTCPK	ATLK.Y	SP ADR A NEW	Pink Sheets LLC	US	USD	26. Jun 1992
OM	ATCO B	SER'B'NPV (POST SPLIT)	OMX Nordic Exchange Stockholm	SE	SEK	27. May 2015
OM	ATCO B	Series B Shares	OMX Nordic Exchange Stockholm	SE	SEK	10. Feb 1992
OTCPK	ATTL.F	Series B Shares	Pink Sheets LLC	US	USD	10. Feb 1992
DB	ACOG	Series B Shares	Deutsche Boerse AG	DE	EUR	10. Feb 1992
BST	ACO1	Series B Shares	Boerse-Stuttgart	DE	EUR	10. Feb 1992
LSE	0XXV	Series B Shares	London Stock Exchange	GB	SEK	10. Feb 1992
BATS-CHIXE	ATCOBS	Series B Shares	BATS 'Chi-X Europe'	GB	SEK	10. Feb 1992
BATS-CHIXE	ATCOBS	Series B Shares	BATS 'Chi-X Europe'	GB	SEK	10. Feb 1992

Number of employees

Current staff

37,232

Atlas Copco employees.

Industry

Industry:	Industrial Machinery
Sector:	Capital Goods

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/05/19 21:25
End of day share price update:	2019/05/17 00:00
Last estimates confirmation:	2019/05/17
Last earnings filing:	2019/04/25
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.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

Atlas Copco

ATCO A Share Price and Events

7 Day Returns

1 Year Returns

ATCO A Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

Related Companies

Siemens

Deere

Ingersoll-Rand

Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

Dividends

Annual Dividend Income

Dividend Amount

Upcoming dividend payment

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

Mats Rahmström

President

SEK17M

53

2.1 yrs

Joeri Ooms

President of Industrial Air

Hans Meyer

CFO and Senior VP of Controlling & Finance

63

20.3 yrs

Mats Högberg

Chief Information officer & VP

14.8 yrs

Daniel Althoff

Vice President of Investor Relations

Håkan Osvald

Senior VP

64

7.3 yrs

Gisela Lindstrand

Senior Vice President of Corporate Communications & Governmental Affairs

56

1 yrs

Ben Van Hove

President of Medical Air Solutions