OM:ATCO A

Stock Analysis Report

Executive Summary

Atlas Copco AB, through its subsidiaries, provides productivity solutions worldwide.

Rewards

Earnings are forecast to grow 5.72% per year

Earnings grew by 24% over the past year

Pays a high and reliable dividend of 1.69%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

ATCO A

3.7%

SE Machinery

1.4%

SE Market


1 Year Return

74.0%

ATCO A

42.3%

SE Machinery

21.1%

SE Market

Return vs Industry: ATCO A exceeded the Swedish Machinery industry which returned 42.3% over the past year.

Return vs Market: ATCO A exceeded the Swedish Market which returned 21.1% over the past year.


Shareholder returns

ATCO AIndustryMarket
7 Day5.5%3.7%1.4%
30 Day5.1%1.7%0.2%
90 Day17.6%10.7%5.8%
1 Year77.6%74.0%47.2%42.3%26.2%21.1%
3 Year85.5%30.0%59.1%32.8%33.7%13.2%
5 Year166.5%73.4%120.6%72.7%60.7%26.3%

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?

26.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATCO A (SEK372.8) is trading above our estimate of fair value (SEK279.56)

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 (26x) compared to the Machinery industry average (17.4x).

PE vs Market: ATCO A is poor value based on its PE Ratio (26x) compared to the Swedish market (18.7x).


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 (9x) compared to the SE Machinery industry average (2.5x).


Next Steps

Future Growth

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

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATCO A's forecast earnings growth (5.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: ATCO A's earnings (5.7% per year) are forecast to grow slower than the Swedish market (9.4% per year).

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

Revenue vs Market: ATCO A's revenue (3.6% per year) is forecast to grow slower than the Swedish market (4.4% per year).

High Growth Revenue: ATCO A's revenue (3.6% 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 (30%)


Next Steps

Past Performance

How has Atlas Copco performed over the past 5 years?

6.8%

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 (17.1%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: ATCO A's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: ATCO A's earnings growth over the past year (24%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: ATCO A earnings growth over the past year (24%) exceeded the Machinery industry 11.8%.


Return on Equity

High ROE: ATCO A's Return on Equity (34.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atlas Copco's financial position?


Financial Position Analysis

Short Term Liabilities: ATCO A's short term assets (SEK57.8B) exceed its short term liabilities (SEK37.4B).

Long Term Liabilities: ATCO A's short term assets (SEK57.8B) exceed its long term liabilities (SEK26.6B).


Debt to Equity History and Analysis

Debt Level: ATCO A's debt to equity ratio (46.3%) is considered high.

Reducing Debt: ATCO A's debt to equity ratio has reduced from 57.1% to 46.3% over the past 5 years.

Debt Coverage: ATCO A's debt is well covered by operating cash flow (69.1%).

Interest Coverage: ATCO A's interest payments on its debt are well covered by EBIT (84.2x coverage).


Balance Sheet

Inventory Level: ATCO A has a high level of physical assets or inventory.

Debt Coverage by Assets: ATCO A's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

1.69%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.6%markettop25%4.6%industryaverage2.4%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: ATCO A's dividend (1.69%) is higher than the bottom 25% of dividend payers in the Swedish market (1.62%).

High Dividend: ATCO A's dividend (1.69%) is low compared to the top 25% of dividend payers in the Swedish market (4.61%).


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 reasonably low payout ratio (44%), ATCO A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATCO A's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

What is the CEO of Atlas Copco's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Mats Rahmström (54yo)

2.7yrs

Tenure

kr17,020,000

Compensation

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 Industr ...


CEO Compensation Analysis

Compensation vs Market: Mats's total compensation ($USD1.81M) is about average for companies of similar size in the Swedish market ($USD2.05M).

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


Management Age and Tenure

2.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ATCO A's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ATCO A's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: ATCO A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr235,75016 Nov 19
Cecilia Sandberg
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares663
Max Pricekr355.58
Buykr143,29915 Nov 19
Henrik Elmin
EntityIndividual
Shares403
Max Pricekr355.58
Sellkr436,97522 Feb 19
Andrew Walker
EntityIndividual
Shares1,722
Max Pricekr253.76
Buykr26,136,73805 Feb 19
Investor AB (publ)
EntityCompany
Shares108,530
Max Pricekr240.83

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hans Meyer (64yo)

    CFO and Senior VP of Controlling & Finance

    • Tenure: 20.9yrs
  • Geert Follens (60yo)

    Senior EVP & Business Area President of Vacuum Technique

    • Tenure: 2.9yrs
  • Gisela Lindstrand (57yo)

    Senior Vice President of Corporate Communications & Governmental Affairs

    • Tenure: 1.6yrs
  • Mats Rahmström (54yo)

    President

    • Tenure: 2.7yrs
    • Compensation: kr17.02m
  • Håkan Osvald (65yo)

    Senior VP

    • Tenure: 7.9yrs
  • Mats Högberg

    Chief Information officer & VP

    • Tenure: 15.3yrs
  • Joeri Ooms

    President of Industrial Air

    • Tenure: 0yrs
  • Ben Van Hove

    President of Medical Air Solutions

    • Tenure: 0yrs
  • Daniel Althoff

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Cecilia Sandberg (51yo)

    Senior Vice President of Human Resources

    • Tenure: 2.9yrs

Board Members

  • Anders Ullberg (73yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: kr844.00k
  • Hans Stråberg (62yo)

    Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: kr2.99m
  • Johan Forssell (48yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: kr893.00k
  • Gunilla Kristina Berg (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: kr878.00k
  • Mikael Bergstedt (59yo)

    Union Representative Director

    • Tenure: 15.9yrs
  • Staffan Bohman (70yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: kr1.16m
  • Peter Wallenberg (60yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: kr774.00k
  • Tina Donikowski (60yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: kr695.00k
  • Mats Rahmström (54yo)

    President

    • Tenure: 2.7yrs
    • Compensation: kr17.02m
  • Sabine Neuß (51yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: kr690.00k

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: kr434.694b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0XXTLSE (London Stock Exchange)YesSeries A SharesGBSEKJan 1980
ATLK.FOTCPK (Pink Sheets LLC)YesSeries A SharesUSUSDJan 1980
ATCO AOM (OMX Nordic Exchange Stockholm)YesSeries A SharesSESEKJan 1980
ACO2DB (Deutsche Boerse AG)YesSeries A SharesDEEURJan 1980
ATCOASBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A SharesGBSEKJan 1980
ATCOASBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A SharesGBSEKJan 1980
ACOF NBMV (Bolsa Mexicana de Valores)YesSeries A SharesMXMXNJan 1980
ATTL.FOTCPK (Pink Sheets LLC)Series B SharesUSUSDFeb 1992
ATCOBSBATS-CHIXE (BATS 'Chi-X Europe')Series B SharesGBSEKFeb 1992
ACOGDB (Deutsche Boerse AG)Series B SharesDEEURFeb 1992
ATCO BOM (OMX Nordic Exchange Stockholm)Series B SharesSESEKFeb 1992
ATCOBSBATS-CHIXE (BATS 'Chi-X Europe')Series B SharesGBSEKFeb 1992
ACO1BST (Boerse-Stuttgart)Series B SharesDEEURFeb 1992
0XXVLSE (London Stock Exchange)Series B SharesGBSEKFeb 1992
ATLK.YOTCPK (Pink Sheets LLC)SP ADR A NEWUSUSDJun 1992
ATLC.YOTCPK (Pink Sheets LLC)SP ADR B NEWUSUSDJun 2003
ATCO BOM (OMX Nordic Exchange Stockholm)SER'B'NPV (POST SPLIT)SESEKMay 2015

Biography

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-fre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 21:04
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.