Atlas Copco AB (publ)
Atlas Copco AB (publ) Fundamental Analysis
Atlas Copco AB (publ) (ACO5.F) shows moderate financial fundamentals with a PE ratio of 40.54, profit margin of 16.35%, and ROE of 30.01%. The company generates $110.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ACO5.F's fundamental strength across five key dimensions:
Efficiency Score
ExcellentACO5.F demonstrates superior asset utilization.
Valuation Score
ModerateACO5.F shows balanced valuation metrics.
Growth Score
ModerateACO5.F shows steady but slowing expansion.
Financial Health Score
ExcellentACO5.F maintains a strong and stable balance sheet.
Profitability Score
ExcellentACO5.F achieves industry-leading margins.
Key Financial Metrics
Is ACO5.F Expensive or Cheap?
P/E Ratio
ACO5.F trades at 40.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ACO5.F's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Atlas Copco AB (publ) at 10.87 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.86 times EBITDA. This signals the market has high growth expectations.
How Well Does ACO5.F Make Money?
Net Profit Margin
For every $100 in sales, Atlas Copco AB (publ) keeps $16.35 as profit after all expenses.
Operating Margin
Core operations generate 21.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.01 in profit for every $100 of shareholder equity.
ROA
Atlas Copco AB (publ) generates $13.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Atlas Copco AB (publ) produces operating cash flow of $23.10B, showing steady but balanced cash generation.
Free Cash Flow
Atlas Copco AB (publ) generates strong free cash flow of $19.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.05 in free cash annually.
FCF Yield
ACO5.F converts 2.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How ACO5.F Stacks Against Its Sector Peers
| Metric | ACO5.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.54 | 25.84 | Worse (Expensive) |
| ROE | 30.01% | 1279.00% | Weak |
| Net Margin | 16.35% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.37 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 10.62 | Neutral |
| ROA | 13.27% | -1537441.00% (disorted) | Strong |
ACO5.F outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Atlas Copco AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure