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Market Cap

kr676.7b

Last Updated

2021/04/16 18:25 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Earnings are forecast to grow 9.87% per year

Pays a reliable dividend of 1.34%

Risk Analysis

No risks detected for ATCO A from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Atlas Copco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATCO A is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ATCO A's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

ATCO A

1.1%

SE Machinery

2.0%

SE Market


1 Year Return

60.0%

ATCO A

73.7%

SE Machinery

61.7%

SE Market

Return vs Industry: ATCO A underperformed the Swedish Machinery industry which returned 75.7% over the past year.

Return vs Market: ATCO A underperformed the Swedish Market which returned 65% over the past year.


Shareholder returns

ATCO AIndustryMarket
7 Day0.7%1.1%2.0%
30 Day11.0%3.6%6.9%
90 Day22.1%15.1%16.7%
1 Year62.8%60.0%78.0%73.7%65.7%61.7%
3 Year119.2%53.9%70.7%43.5%74.1%55.5%
5 Year273.3%150.4%186.6%129.4%109.1%68.1%

Long-Term Price Volatility Vs. Market

How volatile is Atlas Copco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atlas Copco undervalued compared to its fair value and its price relative to the market?

45.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATCO A (SEK544.6) is trading above our estimate of fair value (SEK293.3)

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


Price To Earnings Ratio

PE vs Industry: ATCO A is poor value based on its PE Ratio (44.8x) compared to the SE Machinery industry average (34.6x).

PE vs Market: ATCO A is poor value based on its PE Ratio (44.8x) compared to the Swedish market (27.1x).


Price to Earnings Growth Ratio

PEG Ratio: ATCO A is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ATCO A is overvalued based on its PB Ratio (12.4x) compared to the SE Machinery industry average (3.8x).


Future Growth

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

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATCO A's forecast earnings growth (9.9% per year) is above the savings rate (0.4%).

Earnings vs Market: ATCO A's earnings (9.9% per year) are forecast to grow faster than the Swedish market (8.3% per year).

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

Revenue vs Market: ATCO A's revenue (5.4% per year) is forecast to grow faster than the Swedish market (3.5% per year).

High Growth Revenue: ATCO A's revenue (5.4% 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 (27%)


Past Performance

How has Atlas Copco performed over the past 5 years?

7.5%

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 (14.8%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: ATCO A's earnings have grown by 7.5% per year over the past 5 years.

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

Earnings vs Industry: ATCO A had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Machinery industry average (-23.4%).


Return on Equity

High ROE: ATCO A's Return on Equity (27.6%) is considered high.


Financial Health

How is Atlas Copco's financial position?


Financial Position Analysis

Short Term Liabilities: ATCO A's short term assets (SEK50.9B) exceed its short term liabilities (SEK31.5B).

Long Term Liabilities: ATCO A's short term assets (SEK50.9B) exceed its long term liabilities (SEK28.4B).


Debt to Equity History and Analysis

Debt Level: ATCO A's debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: ATCO A's debt to equity ratio has reduced from 48.8% to 39.7% over the past 5 years.

Debt Coverage: ATCO A's debt is well covered by operating cash flow (104.4%).

Interest Coverage: ATCO A's interest payments on its debt are well covered by EBIT (95.2x coverage).


Balance Sheet


Dividend

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

1.31%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 17 2021Ex Dividend DateApr 28 2021Dividend Pay DateMay 04 20216 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ATCO A's dividend (1.34%) is higher than the bottom 25% of dividend payers in the Swedish market (1.21%).

High Dividend: ATCO A's dividend (1.34%) is low compared to the top 25% of dividend payers in the Swedish market (3.58%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60%), ATCO A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATCO A's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Mats Rahmström (55 yo)

4yrs

Tenure

kr39,990,000

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 ($USD4.73M) is above average for companies of similar size in the Swedish market ($USD2.48M).

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 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

Atlas Copco AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlas Copco AB
  • Ticker: ATCO A
  • Exchange: OM
  • Founded: 1873
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr676.748b
  • Shares outstanding: 1.22b
  • Website: https://www.atlascopcogroup.com/en

Number of Employees


Location

  • Atlas Copco AB
  • Sickla Industriväg 19
  • Nacka
  • Stockholm County
  • Sweden

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 18:25
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
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.