Atlas Copco AB (ATCO A) 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

Alfa Laval AB

Indutrade AB

Atlas Copco AB

Munters Group AB

Why is Atlas Copco AB ?

ROCE(HY) Lowest at 23.6%
INTEREST COVERAGE RATIO(Q) Lowest at 8,367.42
INTEREST(Q) Highest at SEK 132 MM

With ROE of 28.10%, it has a very expensive valuation with a 7.86 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 -9.27%, its profits have fallen by -3.8%

Below par performance in long term as well as near term

Along with generating -9.27% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

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 Atlas Copco AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Atlas Copco AB

-100.0%

14.15

29.80%

OMX Stockholm 30

10.0%

0.40

18.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.03%

EBIT Growth (5y)

11.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.32

Tax Ratio

20.84%

Dividend Payout Ratio

92.14%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

32.13%

ROE (avg)

26.97%

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

7.86

EV to EBIT

21.59

EV to EBITDA

17.34

EV to Capital Employed

7.40

EV to Sales

4.62

PEG Ratio

Dividend Yield

7.69%

ROCE (Latest)

34.26%

ROE (Latest)

28.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at SEK 3.75

DIVIDEND PAYOUT RATIO(Y)

Highest at 183.82%

RAW MATERIAL COST(Y)

Fallen by -1.38% (YoY

CASH AND EQV(HY)

Highest at SEK 42,632 MM

-13What is not working for the Company

ROCE(HY)

Lowest at 23.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,367.42

INTEREST(Q)

Highest at SEK 132 MM

PRE-TAX PROFIT(Q)

Lowest at SEK 8,338 MM

Here's what is working for Atlas Copco AB

Dividend per share

Highest at SEK 3.75 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Cash and Eqv

Highest at SEK 42,632 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 183.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.38% (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 2,673 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 Atlas Copco AB

Interest

At SEK 132 MM has Grown at 109.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 8,367.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at SEK 132 MM

in the last five periods and Increased by 109.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Pre-Tax Profit

Lowest at SEK 8,338 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)