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

Lindab International AB

Assa Abloy AB

HEXPOL AB

Systemair AB

Lifco AB

Mycronic AB

Indutrade AB

Alfa Laval AB

Nederman Holding AB

Atlas Copco AB

Munters Group AB

Why is Alfa Laval AB ?

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

Negative results in Mar 26

INTEREST(HY) At SEK 262 MM has Grown at 309.38%
INTEREST COVERAGE RATIO(Q) Lowest at 2,827.27
OPERATING CASH FLOW(Y) Lowest at SEK 8,617 MM

With ROE of 19.31%, it has a expensive valuation with a 4.98 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 39.73%, its profits have risen by 12.7% ; the PEG ratio of the company is 2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Alfa Laval AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Alfa Laval AB

39.73%

100.40

22.51%

OMX Stockholm 30

29.77%

1.85

16.13%

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

4.98

EV to EBIT

17.66

EV to EBITDA

14.77

EV to Capital Employed

4.24

EV to Sales

3.24

PEG Ratio

2.02

Dividend Yield

1.20%

ROCE (Latest)

24.01%

ROE (Latest)

19.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.62% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 23.44 %

-14What is not working for the Company

INTEREST(HY)

At SEK 262 MM has Grown at 309.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,827.27

OPERATING CASH FLOW(Y)

Lowest at SEK 8,617 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.71 times

NET SALES(Q)

Lowest at SEK 15,919 MM

PRE-TAX PROFIT(Q)

Lowest at SEK 2,561 MM

NET PROFIT(Q)

Lowest at SEK 1,899 MM

EPS(Q)

Lowest at SEK 4.59

Here's what is working for Alfa Laval AB

Operating Profit Margin

Highest at 23.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -5.62% (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 693 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

At SEK 262 MM has Grown at 309.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 2,827.27 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 Cash Flow

Lowest at SEK 8,617 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Net Sales

Lowest at SEK 15,919 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Pre-Tax Profit

Lowest at SEK 2,561 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 1,899 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 4.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Inventory Turnover Ratio

Lowest at 2.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio