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Market Cap

kr286.8b

Last Updated

2021/05/09 18:34 UTC

Data Sources

Company Financials +

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 solid track record and pays a dividend.


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 +/- 4% a week.

Volatility Over Time: SAND's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

9.2%

SAND

4.2%

SE Machinery

0.9%

SE Market


1 Year Return

52.4%

SAND

63.9%

SE Machinery

52.2%

SE Market

Return vs Industry: SAND underperformed the Swedish Machinery industry which returned 63.9% over the past year.

Return vs Market: SAND matched the Swedish Market which returned 52.2% over the past year.


Shareholder returns

SANDIndustryMarket
7 Day9.2%4.2%0.9%
30 Day-5.8%-1.6%1.1%
90 Day5.5%10.5%11.7%
1 Year56.9%52.4%68.9%63.9%57.3%52.2%
3 Year52.9%45.0%68.2%43.8%67.3%48.7%
5 Year212.3%183.8%198.4%141.5%110.3%68.2%

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?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAND (SEK228.6) is trading below our estimate of fair value (SEK294.99)

Significantly Below Fair Value: SAND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAND is good value based on its PE Ratio (28.4x) compared to the SE Machinery industry average (34.2x).

PE vs Market: SAND is poor value based on its PE Ratio (28.4x) compared to the Swedish market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: SAND is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SAND's PB Ratio (4x) is in line with the SE Machinery industry average.


Future Growth

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

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAND's forecast earnings growth (8.6% per year) is above the savings rate (0.3%).

Earnings vs Market: SAND's earnings (8.6% per year) are forecast to grow faster than the Swedish market (2.1% per year).

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

Revenue vs Market: SAND's revenue (5.8% per year) is forecast to grow faster than the Swedish market (0.9% per year).

High Growth Revenue: SAND's revenue (5.8% 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 (19.4%).


Past Performance

How has Sandvik performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAND has high quality earnings.

Growing Profit Margin: SAND's current net profit margins (12%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: SAND's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: SAND's earnings growth over the past year (35.7%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: SAND earnings growth over the past year (35.7%) exceeded the Machinery industry -9.5%.


Return on Equity

High ROE: SAND's Return on Equity (14%) is considered low.


Financial Health

How is Sandvik's financial position?


Financial Position Analysis

Short Term Liabilities: SAND's short term assets (SEK68.1B) exceed its short term liabilities (SEK28.7B).

Long Term Liabilities: SAND's short term assets (SEK68.1B) exceed its long term liabilities (SEK23.5B).


Debt to Equity History and Analysis

Debt Level: SAND's debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: SAND's debt to equity ratio has reduced from 114.9% to 27.4% over the past 5 years.

Debt Coverage: SAND's debt is well covered by operating cash flow (77.8%).

Interest Coverage: SAND's interest payments on its debt are well covered by EBIT (27.6x coverage).


Balance Sheet


Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAND's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Swedish market (1.14%).

High Dividend: SAND's dividend (1.97%) is low compared to the top 25% of dividend payers in the Swedish market (3.38%).


Stability and Growth of Payments

Stable Dividend: SAND's dividend payments have been volatile in the past 10 years.

Growing Dividend: SAND's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.9%), SAND's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAND's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Stefan Widing (43 yo)

1.25yrs

Tenure

kr17,576,914

Compensation

Mr. Stefan Widing has been the President and Chief Executive Officer of Sandvik AB (publ) since February 1, 2020 and as President of Sandvik Manufacturing & Machining Solutions business area since October ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD2.11M) is about average for companies of similar size in the Swedish market ($USD2.52M).

Compensation vs Earnings: Insufficient data to compare Stefan's compensation with company performance.


Leadership Team

Experienced Management: SAND's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: SAND's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAND 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 (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sandvik AB (publ)
  • Ticker: SAND
  • Exchange: OM
  • Founded: 1862
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr286.753b
  • Shares outstanding: 1.25b
  • Website: https://www.home.sandvik

Number of Employees


Location

  • Sandvik AB (publ)
  • Kungsbron 1
  • Section G, plan 6
  • Stockholm
  • Stockholm County
  • 111 22
  • Sweden

Listings


Biography

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. It offers metal-cutting tools and tooling systems, includ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 18:34
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.