OM:EPI A

Stock Analysis Report

Executive Summary

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment, consumables, and service for use in surface and underground mining, infrastructure, civil works, and well drilling worldwide.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EPI A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

EPI A

-1.6%

SE Machinery

0.9%

SE Market


1 Year Return

-0.4%

EPI A

-9.9%

SE Machinery

-11.6%

SE Market

Return vs Industry: EPI A exceeded the Swedish Machinery industry which returned -9.9% over the past year.

Return vs Market: EPI A exceeded the Swedish Market which returned -11.6% over the past year.


Shareholder returns

EPI AIndustryMarket
7 Day-1.0%-1.6%0.9%
30 Day-11.1%-16.6%-17.1%
90 Day-16.9%-25.5%-22.6%
1 Year1.7%-0.4%-8.5%-9.9%-9.4%-11.6%
3 Yearn/a7.2%-9.3%1.9%-13.0%
5 Yearn/a31.7%3.8%9.3%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EPI A (SEK96.28) is trading below our estimate of fair value (SEK111.13)

Significantly Below Fair Value: EPI A is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EPI A is poor value based on its PE Ratio (19.7x) compared to the Machinery industry average (14x).

PE vs Market: EPI A is poor value based on its PE Ratio (19.7x) compared to the Swedish market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: EPI A is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: EPI A is overvalued based on its PB Ratio (5.1x) compared to the SE Machinery industry average (2.6x).


Next Steps

Future Growth

How is Epiroc forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPI A's forecast earnings growth (4.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: EPI A's earnings (4.3% per year) are forecast to grow slower than the Swedish market (8% per year).

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

Revenue vs Market: EPI A's revenue (1.4% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: EPI A's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPI A's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Epiroc performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPI A has high quality earnings.

Growing Profit Margin: EPI A's current net profit margins (14.4%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: EPI A's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: EPI A's earnings growth over the past year (8.2%) is below its 5-year average (15.7% per year).

Earnings vs Industry: EPI A earnings growth over the past year (8.2%) exceeded the Machinery industry -2.4%.


Return on Equity

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


Next Steps

Financial Health

How is Epiroc's financial position?


Financial Position Analysis

Short Term Liabilities: EPI A's short term assets (SEK29.1B) exceed its short term liabilities (SEK9.5B).

Long Term Liabilities: EPI A's short term assets (SEK29.1B) exceed its long term liabilities (SEK8.7B).


Debt to Equity History and Analysis

Debt Level: EPI A's debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EPI A's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EPI A's debt is well covered by operating cash flow (113%).

Interest Coverage: EPI A's interest payments on its debt are well covered by EBIT (46.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: EPI A's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EPI A's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Swedish market (2.05%).

High Dividend: EPI A's dividend (2.49%) is low compared to the top 25% of dividend payers in the Swedish market (6.28%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EPI A's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EPI A's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), EPI A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EPI A's dividends in 3 years are forecast to be well covered by earnings (46.4% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Helena Hedblom (46yo)

0.083

Tenure

Ms. Helena Hedblom has been President and Chief Executive Officer of Epiroc AB (publ) since March 1, 2020. She served as Senior Executive Vice President of Mining & Infrastructure at Epiroc AB (publ) since ...


Leadership Team

NamePositionTenureCompensationOwnership
Helena Hedblom
CEO & President0.083yrno data0.0018% SEK2.1m
Anders Lindén
Senior VP of Controlling & Finance and CFO3.25yrsno data0.00075% SEK868.3k
Jonas Albertson
President Technology & Digital Division0.083yrno datano data
Karin Larsson
VP of Investor Relations & Head of IRno datano datano data
Jörgen Ekelöw
Senior Vice President & General Counsel3.25yrsno data0.00066% SEK764.1k
Mattias Olsson
Senior Vice President of Corporate Communications2.25yrsno data0.00048% SEK555.7k
Nadim Penser
Senior Vice President of Human Resources0.083yrno datano data
Martin Hjerpe
Senior Vice President M&A and Strategy1.08yrsno data0.00054% SEK625.2k
Sami Niiranen
President of Underground Divisionno datano datano data
Jose Sanchez
President of Surface Divisionno datano datano data

1.1yrs

Average Tenure

51yo

Average Age

Experienced Management: EPI A's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ulla Litzén
Independent Director3.25yrskr883.00k0.0066% SEK7.6m
Anders Ullberg
Independent Director3.25yrskr868.00k0.0037% SEK4.3m
Johan Forssell
Director3.25yrskr825.00k0.00042% SEK486.2k
Bengt Lindgren
Employee Representative Director2.25yrsno datano data
Lennart Evrell
Independent Director3.25yrskr763.00k0.00033% SEK382.1k
Jeane Hull
Independent Director2.25yrskr724.00kno data
Ronnie Leten
Chairmanno datakr2.36m0.0056% SEK6.4m
Kristina Kanestad
Employee Representative Director2.25yrsno data0.00010% SEK115.8k
Astrid Onsum
Independent Director2.25yrskr768.00kno data
Gustav El Rachidi
Deputy Director2.25yrsno datano data

2.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: EPI A's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Epiroc AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Epiroc AB (publ)
  • Ticker: EPI A
  • Exchange: OM
  • Founded: 1873
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: kr115.773b
  • Shares outstanding: 1.20b
  • Website: https://www.epirocgroup.com

Number of Employees


Location

  • Epiroc AB (publ)
  • Sickla Industriväg 19
  • Nacka
  • Stockholm County
  • 131 54
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPI AOM (OMX Nordic Exchange Stockholm)YesSeries A SharesSESEKJun 2018
EPI BOM (OMX Nordic Exchange Stockholm)Series B SharesSESEKJun 2018
3AD0DB (Deutsche Boerse AG)YesSeries A SharesDEEURJun 2018
EPIA NBMV (Bolsa Mexicana de Valores)YesSeries A SharesMXMXNJun 2018
EPIASBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A SharesGBSEKJun 2018
EPIBSBATS-CHIXE (BATS 'Chi-X Europe')Series B SharesGBSEKJun 2018
0YSULSE (London Stock Exchange)YesSeries A SharesGBSEKJun 2018
EPOK.FOTCPK (Pink Sheets LLC)YesSeries A SharesUSUSDJun 2018
0YSVLSE (London Stock Exchange)Series B SharesGBSEKJun 2018
3ADDB (Deutsche Boerse AG)Series B SharesDEEURJun 2018
EPKA.FOTCPK (Pink Sheets LLC)Series B SharesUSUSDJun 2018
EPOK.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDAug 2018

Biography

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment, consumables, and service for use in surface and underground mining, infrastructure, civil works, and well drilling worldwide. It operates through two segments, Equipment & Service, and Tools & Attachments. The Equipment & Service segment provides rock drilling equipment; equipment for mechanical rock excavation; rock reinforcement; loading and haulage; ventilation systems; and drilling equipment for exploration, water, oil, and gas, as well as related spare parts and service. The Tools & Attachments segment offers rock drilling tools and hydraulic attachments that are used primarily for drilling, deconstruction, recycling, and rock excavation; and related service and spare parts. It also offers loaders and trucks, reverse circulation drill rigs, and dimensional stone drill rigs, as well as water well drilling equipment and related parts, services, and consumables; and aftermarket services. The company was founded in 1873 and is headquartered in Nacka, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 07:06
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.