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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
OM
SEK329B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

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


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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

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.
X
Value checks
We assess Atlas Copco's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Atlas Copco has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    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!
Annual Growth Rate
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.

Super high growth metrics
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%).
X
Future performance checks
We assess Atlas Copco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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).
X
Past performance checks
We assess Atlas Copco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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).
X
Financial health checks
We assess Atlas Copco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Atlas Copco has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
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.
Dividend payment calendar
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).
X
Income/ dividend checks
We assess Atlas Copco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Atlas Copco has a total score of 3/6, see the detailed checks below.


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
20.3 yrs

Mats Högberg

TITLE
Chief Information officer & VP
TENURE
14.8 yrs

Daniel Althoff

TITLE
Vice President of Investor Relations

Håkan Osvald

TITLE
Senior VP
AGE
64
TENURE
7.3 yrs

Gisela Lindstrand

TITLE
Senior Vice President of Corporate Communications & Governmental Affairs
AGE
56
TENURE
1 yrs

Ben Van Hove

TITLE
President of Medical Air Solutions

Cecilia Sandberg

TITLE
Senior Vice President of Human Resources
AGE
50
TENURE
2.3 yrs

Geert Follens

TITLE
Senior EVP & Business Area President of Vacuum Technique
AGE
59
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Atlas Copco board of directors in years:

6.1
Average Tenure
58.5
Average Age
  • The tenure for the Atlas Copco board of directors is about average.
Board of Directors

Hans Stråberg

TITLE
Chairman of the Board
COMPENSATION
SEK3M
AGE
61
TENURE
5.1 yrs

Mats Rahmström

TITLE
President
COMPENSATION
SEK17M
AGE
53
TENURE
2.1 yrs

Staffan Bohman

TITLE
Director
COMPENSATION
SEK1M
AGE
69
TENURE
16.3 yrs

Mikael Bergstedt

TITLE
Union Representative Director
AGE
58
TENURE
15.3 yrs

Anders Ullberg

TITLE
Director
COMPENSATION
SEK844K
AGE
72
TENURE
16.3 yrs

Johan Forssell

TITLE
Director
COMPENSATION
SEK893K
AGE
47
TENURE
11.1 yrs

Peter Wallenberg

TITLE
Director
COMPENSATION
SEK774K
AGE
59
TENURE
7.1 yrs

Sabine Neuß

TITLE
Director
COMPENSATION
SEK690K
AGE
50
TENURE
3.1 yrs

Gunilla Berg

TITLE
Director
COMPENSATION
SEK878K
AGE
58
TENURE
3.1 yrs

Tina Donikowski

TITLE
Director
COMPENSATION
SEK695K
AGE
59
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Atlas Copco insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role 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
X
Management checks
We assess Atlas Copco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Atlas Copco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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 -

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 -

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 -

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 -

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 -

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 -

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 -

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 -

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 -

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
ATCO A
Exchange: OM
Founded: 1873
SEK328,507,441,547
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
Staff numbers
37,232
Atlas Copco employees.
Industry
Industrial Machinery
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.