Alfa Laval AB (ALFA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Assa Abloy AB

Lifco AB

HEXPOL AB

Systemair AB

Lindab International AB

Nederman Holding AB

Mycronic AB

Indutrade AB

Alfa Laval AB

Atlas Copco AB

Munters Group AB

Why is Alfa Laval AB ?

High Management Efficiency with a high ROCE of 21.35%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.50

Poor long term growth as Operating profit has grown by an annual rate 11.98% of over the last 5 years

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 2,979.23
DEBT-EQUITY RATIO (HY) Highest at 30.36 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.86 times

With ROE of 20.00%, it has a fair valuation with a 4.61 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.53%, its profits have risen by 19.8% ; the PEG ratio of the company is 1.2

Majority shareholders : Non Institution

Consistent Returns over the last 3 years

Along with generating 18.53% returns in the last 1 year, the stock has outperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alfa Laval AB should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alfa Laval AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Alfa Laval AB

-100.0%

101.66

21.61%

OMX Stockholm 30

14.01%

0.84

18.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.94%

EBIT Growth (5y)

11.98%

EBIT to Interest (avg)

13.50

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.23

Tax Ratio

25.59%

Dividend Payout Ratio

44.97%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

21.35%

ROE (avg)

15.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.61

EV to EBIT

15.50

EV to EBITDA

13.06

EV to Capital Employed

4.24

EV to Sales

2.81

PEG Ratio

1.17

Dividend Yield

1.40%

ROCE (Latest)

27.35%

ROE (Latest)

20.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.92% (YoY

DIVIDEND PER SHARE(HY)

Highest at SEK 3.77

NET SALES(Q)

Highest at SEK 19,146 MM

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,979.23

DEBT-EQUITY RATIO (HY)

Highest at 30.36 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.86 times

OPERATING PROFIT MARGIN(Q)

Lowest at 20.23 %

NET PROFIT(Q)

Lowest at SEK 1,979 MM

EPS(Q)

Lowest at SEK 4.79

Here's what is working for Alfa Laval AB

Net Sales

Highest at SEK 19,146 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Dividend per share

Highest at SEK 3.77

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Raw Material Cost

Fallen by 1.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at SEK 685 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for Alfa Laval AB

Interest Coverage Ratio

Lowest at 2,979.23 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 20.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at SEK 1,979 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 4.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Debt-Equity Ratio

Highest at 30.36 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio