OM:SAND

Stock Analysis Report

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Executive Summary

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SAND is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SAND's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

SAND

1.6%

SE Machinery

0.1%

SE Market


1 Year Return

13.8%

SAND

22.0%

SE Machinery

16.7%

SE Market

Return vs Industry: SAND underperformed the Swedish Machinery industry which returned 21.4% over the past year.

Return vs Market: SAND underperformed the Swedish Market which returned 16.5% over the past year.


Shareholder returns

SANDIndustryMarket
7 Day3.7%1.6%0.1%
30 Day16.8%12.7%7.3%
90 Day13.4%13.1%7.3%
1 Year13.8%13.8%22.7%22.0%18.5%16.7%
3 Year41.1%34.6%42.1%20.9%41.3%26.0%
5 Year144.9%122.5%131.3%87.2%60.4%29.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAND (SEK195.7) is trading above our estimate of fair value (SEK171.14)

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


Price To Earnings Ratio

PE vs Industry: SAND is poor value based on its PE Ratio (40.6x) compared to the SE Machinery industry average (32.3x).

PE vs Market: SAND is poor value based on its PE Ratio (40.6x) compared to the Swedish market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: SAND is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SAND is overvalued based on its PB Ratio (3.7x) compared to the SE Machinery industry average (3.1x).


Next Steps

Future Growth

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

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAND's forecast earnings growth (17.1% per year) is above the savings rate (0.5%).

Earnings vs Market: SAND's earnings (17.1% per year) are forecast to grow faster than the Swedish market (11.6% per year).

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

Revenue vs Market: SAND's revenue (4.8% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: SAND's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAND's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Sandvik performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAND has a large one-off loss of SEK6.9B impacting its September 30 2020 financial results.

Growing Profit Margin: SAND's current net profit margins (6.7%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: SAND's earnings have grown by 11.8% per year over the past 5 years.

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

Earnings vs Industry: SAND had negative earnings growth (-47.8%) over the past year, making it difficult to compare to the Machinery industry average (-25.1%).


Return on Equity

High ROE: SAND's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Sandvik's financial position?


Financial Position Analysis

Short Term Liabilities: SAND's short term assets (SEK66.1B) exceed its short term liabilities (SEK27.1B).

Long Term Liabilities: SAND's short term assets (SEK66.1B) exceed its long term liabilities (SEK26.7B).


Debt to Equity History and Analysis

Debt Level: SAND's debt to equity ratio (34.9%) is considered satisfactory.

Reducing Debt: SAND's debt to equity ratio has reduced from 117.9% to 34.9% over the past 5 years.

Debt Coverage: SAND's debt is well covered by operating cash flow (70.6%).

Interest Coverage: SAND's interest payments on its debt are well covered by EBIT (31.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Sandvik current dividend yield, its reliability and sustainability?

2.39%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SAND's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SAND's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SAND's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SAND's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SAND is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SAND's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Stefan Widing (43 yo)

0.75

Tenure

Mr. Stefan Widing serves as President of Sandvik Manufacturing Solutions at Sandvik AB since October 1, 2020. He serves as a Director of Sandvik AB since April 28, 2020. He has been the President and Chief...


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Widing
President0.75yrno data0.0034%
SEK 8.3m
Tomas Eliasson
Executive VP & CFO4.58yrsno data0.0014%
SEK 3.3m
Johan Malmgren
Chief Information Officer5.92yrsno datano data
Ann-Sofie Nordh
Vice President of Investor Relationsno datano datano data
Åsa Maria Thunman
Executive VP6.08yrsno data0.00040%
SEK 966.6k
Jessica Alm
Executive VP & Head of Group Communications7.33yrsno data0.00039%
SEK 942.5k
Johan Kerstell
Executive VP & Head of Human Resources4.42yrsno data0.00067%
SEK 1.6m
Carl Larsson
Head of Real Estateno datano datano data
Bernth Nilsson
Head of Group Staff Assurance11.58yrsno datano data
Pierre Jansson
Head of Taxes and Financial Projects11.17yrsno datano data
Gary Hughes
Senior Vice President Sales of Sandvik Mining Business Area6.5yrsno datano data
Fredrik Söderberg
Head of Other Operations4.33yrsno datano data

6.0yrs

Average Tenure

51yo

Average Age

Experienced Management: SAND's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Widing
President0.75yrno data0.0034%
SEK 8.3m
Helena Stjernholm
Director4.58yrskr975.00k0.00040%
SEK 966.6k
Percy Barnevik
Honorary Chairmanno datano datano data
Johan Karlström
Independent Director9.5yrskr805.00k0.00040%
SEK 966.6k
Kai Wärn
Director0.58yrno datano data
Johan Molin
Independent Chairman of the Board5.5yrskr2.70m0.021%
SEK 50.1m
Jennifer Allerton
Independent Director5.5yrskr690.00k0.00080%
SEK 1.9m
Tomas Kärnström
Employee Representative Director14.5yrsno data0.00023%
SEK 555.8k
Marika Fredriksson
Independent Director3.5yrskr690.00k0.00020%
SEK 483.3k
Thomas Andersson
Employee Representative Deputy Director8.83yrsno datano data
Claes Boustedt
Independent Director5.5yrskr990.00k0.0016%
SEK 3.8m
Thomas Lilja
Employee Representative Director4.83yrsno data0.00039%
SEK 942.5k

5.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SAND's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Sandvik AB
  • Ticker: SAND
  • Exchange: OM
  • Founded: 1862
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr241.657b
  • Shares outstanding: 1.25b
  • Website: https://www.home.sandvik

Number of Employees


Location

  • Sandvik AB
  • World Trade Center
  • Floor 6
  • Stockholm
  • Stockholm County
  • 111 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDVK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
SANDOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKJun 1993
0HC0LSE (London Stock Exchange)YesOrdinary SharesGBSEKJun 1993
SVKBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
SANDSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKJun 1993
SDVK.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 1994

Biography

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 system...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:06
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.