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SAND

Sandvik OM:SAND Stock Report

Last Price

kr181.45

Market Cap

kr227.6b

7D

0.4%

1Y

-18.5%

Updated

15 Aug, 2022

Data

Company Financials +
SAND fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends3/6

SAND Stock Overview

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally.

Sandvik Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sandvik
Historical stock prices
Current Share Pricekr181.45
52 Week Highkr263.20
52 Week Lowkr160.05
Beta1.36
1 Month Change8.49%
3 Month Change-5.98%
1 Year Change-18.49%
3 Year Change33.86%
5 Year Change44.35%
Change since IPO908.06%

Recent News & Updates

Jul 31
Should You Be Adding Sandvik (STO:SAND) To Your Watchlist Today?

Should You Be Adding Sandvik (STO:SAND) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jul 20
Why Sandvik AB (publ) (STO:SAND) Could Be Worth Watching

Why Sandvik AB (publ) (STO:SAND) Could Be Worth Watching

Today we're going to take a look at the well-established Sandvik AB (publ) ( STO:SAND ). The company's stock saw...

Shareholder Returns

SANDSE MachinerySE Market
7D0.4%0.6%0.9%
1Y-18.5%-16.9%-20.9%

Return vs Industry: SAND matched the Swedish Machinery industry which returned -17.9% over the past year.

Return vs Market: SAND exceeded the Swedish Market which returned -21.8% over the past year.

Price Volatility

Is SAND's price volatile compared to industry and market?
SAND volatility
SAND Average Weekly Movement4.7%
Machinery Industry Average Movement6.3%
Market Average Movement7.2%
10% most volatile stocks in SE Market12.6%
10% least volatile stocks in SE Market4.5%

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.

About the Company

FoundedEmployeesCEOWebsite
186238,994Stefan Widinghttps://www.home.sandvik

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally. The company offers mining and rock solutions, including drill rigs, underground loaders and trucks, rock drills and other tools, and parts and services, as well as digital and sustainability solutions; and rock processing applications, which include crushing, screening, feeding, breaking, demolition, and recycling. It also provides manufacturing solutions, comprising traditional metal cutting under the Sandvik Coromant, Walter, Wolfram, Seco, and Dormer Pramet brands; and manufactures tools and tooling systems for advanced metal cutting.

Sandvik Fundamentals Summary

How do Sandvik's earnings and revenue compare to its market cap?
SAND fundamental statistics
Market Capkr227.61b
Earnings (TTM)kr14.44b
Revenue (TTM)kr112.41b

15.8x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAND income statement (TTM)
Revenuekr112.41b
Cost of Revenuekr68.27b
Gross Profitkr44.14b
Other Expenseskr29.70b
Earningskr14.44b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 17, 2022

Earnings per share (EPS)11.51
Gross Margin39.27%
Net Profit Margin12.85%
Debt/Equity Ratio62.0%

How did SAND perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SAND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAND?

Other financial metrics that can be useful for relative valuation.

SAND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA11.1x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does SAND's PE Ratio compare to its peers?

SAND PE Ratio vs Peers
The above table shows the PE ratio for SAND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.8x
ALFA Alfa Laval
26.3x12.4%kr124.8b
ATCO A Atlas Copco
27.8x4.5%kr546.8b
SKF B AB SKF
12.7x13.9%kr76.3b
INDT Indutrade
36.4x7.7%kr86.9b
SAND Sandvik
15.8x8.9%kr227.6b

Price-To-Earnings vs Peers: SAND is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (25.8x).


Price to Earnings Ratio vs Industry

How does SAND's PE Ratio compare vs other companies in the SE Machinery Industry?

Price-To-Earnings vs Industry: SAND is good value based on its Price-To-Earnings Ratio (15.8x) compared to the Swedish Machinery industry average (17.7x)


Price to Earnings Ratio vs Fair Ratio

What is SAND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio28.1x

Price-To-Earnings vs Fair Ratio: SAND is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (28.1x).


Share Price vs Fair Value

What is the Fair Price of SAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAND (SEK181.45) is trading below our estimate of fair value (SEK290.32)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAND's forecast earnings growth (8.9% per year) is above the savings rate (0.4%).

Earnings vs Market: SAND's earnings (8.9% per year) are forecast to grow slower than the Swedish market (15.9% per year).

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

Revenue vs Market: SAND's revenue (5.7% per year) is forecast to grow slower than the Swedish market (10.9% per year).

High Growth Revenue: SAND's revenue (5.7% 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 (18.7%).


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Past Performance

How has Sandvik performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.05%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SAND has high quality earnings.

Growing Profit Margin: SAND's current net profit margins (12.8%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: SAND's earnings have grown by 0.05% per year over the past 5 years.

Accelerating Growth: SAND's earnings growth over the past year (21.8%) exceeds its 5-year average (0.05% per year).

Earnings vs Industry: SAND earnings growth over the past year (21.8%) underperformed the Machinery industry 28.5%.


Return on Equity

High ROE: SAND's Return on Equity (19.9%) is considered low.


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Financial Health

How is Sandvik's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SAND's short term assets (SEK93.0B) exceed its short term liabilities (SEK65.5B).

Long Term Liabilities: SAND's short term assets (SEK93.0B) exceed its long term liabilities (SEK43.9B).


Debt to Equity History and Analysis

Debt Level: SAND's net debt to equity ratio (51.3%) is considered high.

Reducing Debt: SAND's debt to equity ratio has reduced from 91.3% to 62% over the past 5 years.

Debt Coverage: SAND's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: SAND's interest payments on its debt are well covered by EBIT (37.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SAND's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Swedish market (1.43%).

High Dividend: SAND's dividend (2.62%) is low compared to the top 25% of dividend payers in the Swedish market (5.3%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.3%), SAND's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (399.4%), SAND's dividend payments are not well covered by cash flows.


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Management

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

5.5yrs

Average management tenure


CEO

Stefan Widing (45 yo)

2.5yrs

Tenure

kr30,647,783

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 Septembe...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD2.97M) is about average for companies of similar size in the Swedish market ($USD2.52M).

Compensation vs Earnings: Stefan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SAND's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: SAND's board of directors are considered experienced (5.8 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 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
  • Implied Market Cap: kr227.608b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.