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Sandvik

OM:SAND
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAND
OM
SEK203B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. The last earnings update was 33 days ago. More info.


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SAND Share Price and Events
7 Day Returns
0.4%
OM:SAND
0.9%
SE Machinery
1.4%
SE Market
1 Year Returns
-1.2%
OM:SAND
-17.2%
SE Machinery
-2%
SE Market
SAND Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sandvik (SAND) 0.4% -8% 6.1% -1.2% 94.2% 67.3%
SE Machinery 0.9% -7.5% 4.9% -17.2% 41.6% 33.7%
SE Market 1.4% -3.3% 1.1% -2% 13% 16.7%
1 Year Return vs Industry and Market
  • SAND outperformed the Machinery industry which returned -17.2% over the past year.
Price Volatility
SAND
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Sandvik 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 Sandvik 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 Sandvik.

OM:SAND 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 7.1%
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:SAND
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))
= 1.049 (1 + (1- 22%) (16.52%))
1.123
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.123 * 5.96%)
7.13%

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

The calculations below outline how an intrinsic value for Sandvik 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:SAND DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 7.13%)
2019 13,610.06 Analyst x12 12,704.48
2020 14,055.62 Analyst x12 12,247.40
2021 14,777.44 Analyst x9 12,019.61
2022 15,314.97 Est @ 3.64% 11,627.97
2023 15,724.87 Est @ 2.68% 11,144.79
2024 16,039.98 Est @ 2% 10,611.72
2025 16,285.87 Est @ 1.53% 10,057.49
2026 16,481.85 Est @ 1.2% 9,501.27
2027 16,642.16 Est @ 0.97% 8,955.35
2028 16,777.15 Est @ 0.81% 8,427.29
Present value of next 10 years cash flows SEK107,297.38
OM:SAND DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK16,777.15 × (1 + 0.43%) ÷ (7.13% – 0.43%)
SEK251,729.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK251,729.26 ÷ (1 + 7.13%)10
SEK126,445.54
OM:SAND Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK107,297.38 + SEK126,445.54
SEK233,742.92
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK233,742.92 / 1,254.39
SEK186.34
OM:SAND Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK186.34
Current discount Discount to share price of SEK161.65
= -1 x (SEK161.65 - SEK186.34) / SEK186.34
13.3%

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

Current Discount
Amount off the current price Sandvik is available for.
Intrinsic value
13%
Share price is SEK161.65 vs Future cash flow value of SEK186.34
Current Discount Checks
For Sandvik to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sandvik's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Sandvik's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Sandvik's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sandvik's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:SAND PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SEK SEK10.72
OM:SAND Share Price ** OM (2019-05-21) in SEK SEK161.65
Sweden Machinery Industry PE Ratio Median Figure of 17 Publicly-Listed Machinery Companies 16.09x
Sweden Market PE Ratio Median Figure of 323 Publicly-Listed Companies 16.74x

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

** Primary Listing of Sandvik.

OM:SAND PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:SAND Share Price ÷ EPS (both in SEK)

= 161.65 ÷ 10.72

15.08x

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

  • Sandvik is good value based on earnings compared to the SE Machinery industry average.
  • Sandvik is good value based on earnings compared to the Sweden market.
Price based on expected Growth
Does Sandvik's expected growth come at a high price?
Raw Data
OM:SAND PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.08x
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 2.69x
Sweden Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

OM:SAND PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.08x ÷ 5.5%

2.75x

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

  • Sandvik is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sandvik's assets?
Raw Data
OM:SAND PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SEK SEK50.66
OM:SAND Share Price * OM (2019-05-21) in SEK SEK161.65
Sweden Machinery Industry PB Ratio Median Figure of 27 Publicly-Listed Machinery Companies 3.14x
Sweden Market PB Ratio Median Figure of 568 Publicly-Listed Companies 2.45x
OM:SAND PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:SAND Share Price ÷ Book Value per Share (both in SEK)

= 161.65 ÷ 50.66

3.19x

* Primary Listing of Sandvik.

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

  • Sandvik is overvalued based on assets compared to the SE Machinery industry average.
X
Value checks
We assess Sandvik'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. Sandvik has a total score of 2/6, 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 Sandvik 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 Sandvik expected to grow at an attractive rate?
  • Sandvik's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Sandvik's earnings growth is positive but not above the Sweden market average.
  • Sandvik's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:SAND Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:SAND Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 5.5%
OM:SAND Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 3.5%
Sweden Machinery Industry Earnings Growth Rate Market Cap Weighted Average 2.3%
Sweden Machinery Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
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:SAND 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:SAND Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 123,000 1
2022-12-31 120,000 1
2021-12-31 111,486 19,578 15,396 16
2020-12-31 108,213 18,506 14,739 19
2019-12-31 104,567 17,074 13,812 20
OM:SAND Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-03-31 101,412 16,122 13,446
2018-12-31 100,072 14,914 13,259
2018-09-30 98,111 14,239 16,846
2018-06-30 95,437 12,482 15,260
2018-03-31 92,754 12,666 13,907
2017-12-31 90,827 14,286 13,226
2017-09-30 88,716 13,245 8,919
2017-06-30 86,822 13,988 8,185
2017-03-31 83,611 13,772 7,690
2016-12-31 81,553 12,032 6,878
2016-09-30 80,675 11,068 4,620
2016-06-30 81,706 10,323 4,268

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sandvik's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • Sandvik's revenue is expected to grow by 3.5% 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:SAND 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 Sandvik Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SAND Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 12.44 14.27 11.32 13.00
2020-12-31 11.85 13.46 10.59 15.00
2019-12-31 11.14 11.96 10.25 15.00
OM:SAND Past Financials Data
Date (Data in SEK Millions) EPS *
2019-03-31 10.72
2018-12-31 10.57
2018-09-30 13.42
2018-06-30 12.17
2018-03-31 11.09
2017-12-31 10.54
2017-09-30 7.12
2017-06-30 6.53
2017-03-31 6.13
2016-12-31 5.48
2016-09-30 3.69
2016-06-30 3.40

*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.
  • Sandvik is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sandvik'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.
Sandvik has a total score of 1/6, 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 Sandvik 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 Sandvik'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.
  • Sandvik has delivered over 20% year on year earnings growth in the past 5 years.
  • Sandvik's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sandvik's 1-year earnings growth is negative, it can't be compared to the SE Machinery industry average.
Earnings and Revenue History
Sandvik'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 Sandvik Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SAND Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 101,412.00 13,446.00 19,874.00 3,605.00
2018-12-31 100,072.00 13,259.00 19,526.00 3,535.00
2018-09-30 98,111.00 16,846.00 19,250.00 3,438.00
2018-06-30 95,437.00 15,260.00 19,172.00 3,366.00
2018-03-31 92,754.00 13,907.00 18,827.00 3,248.00
2017-12-31 90,827.00 13,226.00 18,733.00 3,163.00
2017-09-30 88,716.00 8,919.00 18,120.00 3,157.00
2017-06-30 86,822.00 8,185.00 17,886.00 3,131.00
2017-03-31 83,611.00 7,690.00 17,575.00 3,120.00
2016-12-31 81,553.00 6,878.00 17,363.00 3,075.00
2016-09-30 80,675.00 4,620.00 18,388.00 3,079.00
2016-06-30 81,706.00 4,268.00 18,531.00 3,027.00
2016-03-31 83,585.00 4,384.00 18,920.00 2,948.00
2015-12-31 85,845.00 3,496.00 19,977.00 3,001.00
2015-09-30 86,609.00 5,228.00 19,461.00 2,815.00
2015-06-30 86,771.00 5,465.00 19,590.00 2,787.00
2015-03-31 83,710.00 5,194.00 19,162.00 2,705.00
2014-12-31 82,533.00 6,116.00 18,059.00 2,609.00
2014-09-30 82,599.00 4,579.00 17,969.00 2,673.00
2014-06-30 82,108.00 4,711.00 17,408.00 2,655.00
2014-03-31 86,013.00 5,031.00 17,406.00 2,718.00
2013-12-31 87,328.00 5,013.00 17,330.00 2,661.00
2013-09-30 89,886.00 5,693.00 17,512.00 2,617.00
2013-06-30 92,895.00 6,164.00 17,856.00 2,592.00
2013-03-31 95,789.00 7,081.00 17,933.00 2,568.00
2012-12-31 98,529.00 8,107.00 18,297.00 2,572.00
2012-09-30 99,305.00 8,108.00 20,117.00 2,516.00
2012-06-30 99,409.00 6,633.00 19,988.00 2,505.00

*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.
  • Sandvik has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Sandvik used its assets more efficiently than the SE Machinery industry average last year based on Return on Assets.
  • Sandvik has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sandvik'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.
Sandvik has a total score of 4/6, 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 Sandvik'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 Sandvik's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sandvik is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sandvik's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sandvik'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 2.1x 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 Sandvik Company Filings, last reported 1 month ago.

OM:SAND Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 63,587.00 33,506.00 19,845.00
2018-12-31 58,518.00 23,929.00 18,089.00
2018-09-30 56,756.00 29,705.00 13,703.00
2018-06-30 54,335.00 30,079.00 10,802.00
2018-03-31 53,821.00 29,546.00 14,110.00
2017-12-31 48,722.00 23,819.00 12,724.00
2017-09-30 40,595.00 34,402.00 8,559.00
2017-06-30 39,584.00 36,189.00 7,451.00
2017-03-31 41,942.00 37,539.00 10,798.00
2016-12-31 39,290.00 31,418.00 8,818.00
2016-09-30 35,281.00 41,854.00 7,927.00
2016-06-30 35,389.00 39,919.00 4,134.00
2016-03-31 35,443.00 40,744.00 7,170.00
2015-12-31 34,060.00 34,548.00 6,376.00
2015-09-30 35,088.00 42,404.00 5,890.00
2015-06-30 33,869.00 43,431.00 2,936.00
2015-03-31 37,199.00 45,563.00 7,318.00
2014-12-31 36,672.00 37,069.00 6,327.00
2014-09-30 34,490.00 44,359.00 4,988.00
2014-06-30 32,949.00 43,146.00 2,490.00
2014-03-31 34,826.00 33,224.00 2,328.00
2013-12-31 33,610.00 30,335.00 5,076.00
2013-09-30 32,617.00 34,757.00 3,023.00
2013-06-30 31,432.00 35,965.00 6,770.00
2013-03-31 33,399.00 39,330.00 13,708.00
2012-12-31 32,536.00 40,998.00 13,829.00
2012-09-30 35,306.00 35,838.00 9,247.00
2012-06-30 34,678.00 36,378.00 6,411.00
  • Sandvik's level of debt (52.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (95.8% vs 52.7% today).
  • Debt is well covered by operating cash flow (48.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.4x coverage).
X
Financial health checks
We assess Sandvik'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. Sandvik has a total score of 5/6, 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 Sandvik'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
2.63%
Current annual income from Sandvik dividends. Estimated to be 3.06% next year.
If you bought SEK2,000 of Sandvik shares you are expected to receive SEK53 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?
  • Sandvik's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.81%).
  • Sandvik's dividend is below the markets top 25% of dividend payers in Sweden (4.42%).
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:SAND 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 1.2%
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:SAND Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 5.33 17.00
2020-12-31 4.98 19.00
2019-12-31 4.59 20.00
OM:SAND Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-03-20 4.250 2.602
2018-04-27 3.500 2.373
2017-03-21 2.750 1.942
2016-02-03 2.500 2.647
2015-05-07 3.500 4.242
2014-04-07 3.500 4.036
2013-03-20 3.500 3.906
2012-03-26 3.250 3.408
2011-11-28 3.000 3.224
2011-05-04 3.000 3.266
2010-05-05 1.000 0.930

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

  • Sandvik has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Sandvik only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Sandvik's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Sandvik's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 Sandvik afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sandvik 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 Sandvik'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
Björn Klas Rosengren
COMPENSATION SEK38,564,788
AGE 59
TENURE AS CEO 3.5 years
CEO Bio

Mr. Björn Klas Otto Rosengren, M.Sc. (Tech.), has been the Chief Executive Officer and President at Sandvik AB since November 1, 2015. Mr. Rosengren served as the Chief Executive Officer, President and a Member of Management Board at Wärtsilä Oyj Abp from September 01, 2011 to October 31, 2015. He served as a Business Area President of Construction & Mining Technique at Atlas Copco Prime Energy, LLC. He served as a Business Area President of Construction and Mining Technique at Atlas Copco North America LLC. He served as a Senior Executive Vice President and Business Area President of Construction and Mining Technique at Atlas Copco AB of Atlas Copco (India) Limited and Atlas Copco North America LLC until September 2011. He served as Business Area Executive for Construction and Mining Technique at Atlas Copco AB. Mr. Rosengren was employed by Atlas Copco AB since 1998 until 2011. From 1985 to 1995, he held various positions within Esab Group, including international assignments as Marketing Manager in Switzerland and Sweden and other international positions in the field of Marketing. He served as General Manager of Nordhydraulic, Nordwin AB and Kramfors Sweden since 1995 until 1998. In 1998, he joined Atlas Copco as President of Craelius Division and prior to that, he served as its President of Rock Drilling Equipment Division. He serves as a Board Member at HTC AB. He has been an Independent Director of Danfoss A/S since 2010 and has been its Vice Chairman since June 2, 2016. He has been a Director of Sandvik AB since April 28, 2016. He serves as a Director of Dynapac AB and Danfoss District Energy A/S. He serves as a Director of Moderna Försäkringar Sak AB. He served as a Director of Höganäs AB (publ) since May 3, 2011. He served as Director of Outotec Oyj from March 31, 2014 to September 18, 2015. He served as a Director of Pergo AB from April 2002 to April 2005. He served as a Director at Moderna Forsakringar Sak AB. He served as a Non Executive Director of Atlas Copco (India) Limited until October 2009. Mr. Rosengren holds an M.Sc. in Technology from Chalmers University of Technology, Gothenburg, Sweden in 1985.

CEO Compensation
  • Björn Klas's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Björn Klas's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Sandvik management team in years:

4.5
Average Tenure
49
Average Age
  • The tenure for the Sandvik management team is about average.
Management Team

Björn Klas Rosengren

TITLE
President
COMPENSATION
SEK39M
AGE
59
TENURE
3.5 yrs

Tomas Eliasson

TITLE
Executive VP & CFO
AGE
56
TENURE
3.1 yrs

Johan Malmgren

TITLE
Chief Information Officer
TENURE
4.4 yrs

Ann-Sofie Nordh

TITLE
Vice President of Investor Relations
AGE
49

Åsa Maria Thunman

TITLE
Executive VP
AGE
49
TENURE
4.6 yrs

Jessica Alm

TITLE
Executive VP & Head of Group Communications
AGE
41
TENURE
5.8 yrs

Johan Kerstell

TITLE
Executive VP & Head of Human Resources
AGE
48
TENURE
2.9 yrs

Carl Larsson

TITLE
Head of Real Estate

Bernth Nilsson

TITLE
Head of Group Staff Assurance
TENURE
10.1 yrs

Pierre Jansson

TITLE
Head of Taxes and Financial Projects
TENURE
9.7 yrs
Board of Directors Tenure

Average tenure and age of the Sandvik board of directors in years:

4
Average Tenure
59
Average Age
  • The tenure for the Sandvik board of directors is about average.
Board of Directors

Johan Molin

TITLE
Chairman of the Board
COMPENSATION
SEK3M
AGE
59
TENURE
4 yrs

Björn Klas Rosengren

TITLE
President
COMPENSATION
SEK39M
AGE
59
TENURE
3.1 yrs

Percy Barnevik

TITLE
Honorary Chairman
AGE
77

Claes Boustedt

TITLE
Independent Director
COMPENSATION
SEK945K
AGE
56
TENURE
4 yrs

Tomas Kärnström

TITLE
Employee Representative Director
AGE
52
TENURE
13 yrs

Lars Westerberg

TITLE
Independent Director
COMPENSATION
SEK930K
AGE
70
TENURE
9 yrs

Johan Karlström

TITLE
Independent Director
COMPENSATION
SEK770K
AGE
61
TENURE
8 yrs

Jennifer Allerton

TITLE
Independent Director
COMPENSATION
SEK660K
AGE
67
TENURE
4 yrs

Helena Stjernholm

TITLE
Director
COMPENSATION
SEK820K
AGE
48
TENURE
3.1 yrs

Thomas Lilja

TITLE
Employee Representative Director
AGE
43
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • Sandvik insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
16. May 19 Sell Jessica Alm Individual 16. May 19 16. May 19 -8,305 SEK161.25 SEK-1,339,181
15. May 19 Buy Klas Forsström Individual 14. May 19 14. May 19 256 SEK159.52 SEK40,895
15. May 19 Buy Johan Kerstell Individual 14. May 19 14. May 19 145 SEK159.53 SEK23,131
15. May 19 Buy Göran Björkman Individual 14. May 19 14. May 19 168 SEK159.53 SEK26,843
15. May 19 Buy Jessica Alm Individual 14. May 19 14. May 19 306 SEK159.53 SEK48,779
15. May 19 Buy Åsa Maria Thunman Individual 14. May 19 14. May 19 219 SEK159.53 SEK34,928
15. May 19 Buy Tomas Eliasson Individual 14. May 19 14. May 19 300 SEK159.52 SEK47,856
15. May 19 Buy Björn Klas Rosengren Individual 14. May 19 14. May 19 930 SEK159.53 SEK148,340
10. May 19 Sell Göran Björkman Individual 08. May 19 08. May 19 -16,682 SEK165.56 SEK-2,761,752
10. May 19 Sell Björn Klas Rosengren Individual 07. May 19 07. May 19 -128,631 SEK166.69 SEK-21,441,501
10. May 19 Buy Björn Klas Rosengren Individual 07. May 19 07. May 19 112,554 SEK167.95 SEK18,903,444
09. May 19 Sell Klas Forsström Individual 07. May 19 07. May 19 -23,044 SEK165.15 SEK-3,805,717
09. May 19 Buy Klas Forsström Individual 07. May 19 07. May 19 19,155 SEK167.95 SEK3,217,082
08. May 19 Buy Göran Björkman Individual 07. May 19 07. May 19 14,025 SEK167.95 SEK2,355,487
08. May 19 Buy Johan Kerstell Individual 07. May 19 07. May 19 14,994 SEK167.95 SEK2,518,242
08. May 19 Buy Jessica Alm Individual 07. May 19 07. May 19 7,892 SEK167.95 SEK1,325,435
08. May 19 Sell Åsa Maria Thunman Individual 07. May 19 07. May 19 -27,530 SEK164.81 SEK-4,537,065
08. May 19 Buy Åsa Maria Thunman Individual 07. May 19 07. May 19 23,676 SEK167.95 SEK3,976,304
08. May 19 Sell Tomas Eliasson Individual 07. May 19 07. May 19 -43,137 SEK166.17 SEK-7,167,886
08. May 19 Buy Tomas Eliasson Individual 07. May 19 07. May 19 37,091 SEK167.95 SEK6,229,433
29. Jan 19 Buy AB Industrivärden (publ) Company 28. Jan 19 28. Jan 19 1,900,000 SEK144.07 SEK272,500,733
30. Nov 18 Buy AB Industrivärden (publ) Company 29. Nov 18 29. Nov 18 1,442,000 SEK134.58 SEK193,864,048
26. Oct 18 Buy AB Industrivärden (publ) Company 25. Oct 18 26. Oct 18 2,185,946 SEK137.92 SEK299,615,213
15. Jun 18 Buy Johan Kerstell Individual 12. Jun 18 12. Jun 18 1,499 SEK156.09 SEK233,979
13. Jun 18 Buy Göran Björkman Individual 12. Jun 18 12. Jun 18 2,114 SEK156.09 SEK330,000
13. Jun 18 Buy Jessica Alm Individual 12. Jun 18 12. Jun 18 1,396 SEK156.09 SEK217,854
13. Jun 18 Buy Lars Engström Individual 12. Jun 18 12. Jun 18 3,465 SEK156.09 SEK540,800
13. Jun 18 Buy Åsa Maria Thunman Individual 12. Jun 18 12. Jun 18 2,178 SEK156.09 SEK340,000
14. Jun 18 Sell Klas Forsström Individual 12. Jun 18 12. Jun 18 -3,250 SEK156.00 SEK-507,000
14. Jun 18 Buy Klas Forsström Individual 12. Jun 18 12. Jun 18 2,819 SEK156.09 SEK439,990
14. Jun 18 Buy Tomas Eliasson Individual 12. Jun 18 12. Jun 18 1,608 SEK156.09 SEK251,000
14. Jun 18 Buy Björn Klas Rosengren Individual 12. Jun 18 12. Jun 18 9,125 SEK156.09 SEK1,424,321
24. May 18 Sell Johan Kerstell Individual 24. May 18 24. May 18 -2,394 SEK161.00 SEK-385,434
X
Management checks
We assess Sandvik'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. Sandvik 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

With A -3.3% Earnings Drop, Is Sandvik AB's (STO:SAND) A Concern?

Assessing Sandvik AB's (STO:SAND) past track record of performance is an insightful exercise for investors. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which SAND is growing has slowed down. … I suggest you continue to research Sandvik to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for SAND’s future growth?

Simply Wall St -

Sandvik AB (STO:SAND): Time For A Financial Health Check

the key to their continued success lies in its financial health. … This article will examine Sandvik’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

A Look At The Intrinsic Value Of Sandvik AB (STO:SAND)

by estimating the company's future cash flows and discounting them to their present value. … Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Sandvik AB (STO:SAND)

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Sandvik's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Sandvik AB (STO:SAND): An Investing Strategy To Help You Win

The risk of investing in the stock market is a systematic crash. … This is the best time to buy stocks like Sandvik AB at a discount. … Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide

Simply Wall St -

What Kind Of Investor Owns Most Of Sandvik AB (STO:SAND)?

The big shareholder groups in Sandvik AB (STO:SAND) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Investors Who Bought Sandvik (STO:SAND) Shares Three Years Ago Are Now Up 78%

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Sandvik achieved compound earnings per share growth of 56% per year. … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Simply Wall St -

What Sandvik AB's (STO:SAND) ROE Can Tell Us

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every SEK1 worth of shareholders' equity, it generated SEK0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why We Like Sandvik AB’s (STO:SAND) 20% Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

How Does Sandvik AB (STO:SAND) Fare As A Dividend Stock?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Sandvik AB (STO:SAND) has paid dividends to shareholders, and these days it yields 2.8%. … Let's take a look at Sandvik in more detail.

Simply Wall St -

Company Info

Description

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. The company offers metal-cutting tools and tooling systems, including boring, drilling, milling, reaming, and turning tools, as well as tailor made tools and inserts, and tooling systems. It also provides mining and rock excavation equipment and tools, such as stationary and mobile crushers and screens, underground drill rigs and bolters, surface drill rigs, exploration drill rigs and tools, underground loaders and trucks, mechanical cutting equipment, rock tools and drills, mining automation systems, and parts and services, as well as breakers, demolition tools, and booms. In addition, the company offers stainless steels, special alloys, and titanium products comprising bar and hollow bars, billets and blooms, controlled expansion alloy products, hot isostatic pressed products, metal powders, plates and sheets, strip steels, and wire products, as well as tubes, pipes, fittings, and flanges; and technical services related to stainless steels and special alloys. Further, it offers advisory services for the additive manufacturing, additive manufacturing services, and powders for additive manufacturing; and diffusion furnaces, and furnace products and heating materials. The company serves aerospace, automotive, construction, general engineering, mining, nuclear power generation, oil and gas, process, and renewable energy industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.

Details
Name: Sandvik AB
SAND
Exchange: OM
Founded: 1862
SEK202,771,484,452
1,254,385,923
Website: http://www.home.sandvik
Address: Sandvik AB
World Trade Center,
floor 6,
Stockholm,
Stockholm County, 111 22,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM SAND Ordinary Shares OMX Nordic Exchange Stockholm SE SEK 14. Jun 1993
OTCPK SDVK.F Ordinary Shares Pink Sheets LLC US USD 14. Jun 1993
DB SVKB Ordinary Shares Deutsche Boerse AG DE EUR 14. Jun 1993
LSE 0HC0 Ordinary Shares London Stock Exchange GB SEK 14. Jun 1993
BATS-CHIXE SANDS Ordinary Shares BATS 'Chi-X Europe' GB SEK 14. Jun 1993
OTCPK SDVK.Y ADR Pink Sheets LLC US USD 03. Aug 1994
Number of employees
Current staff
Staff numbers
41,804
Sandvik employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 21:21
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/04/18
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.