Alfa Laval AB (publ)
Alfa Laval AB (publ) Fundamental Analysis
Alfa Laval AB (publ) (ALFVY) shows moderate financial fundamentals with a PE ratio of 26.63, profit margin of 11.88%, and ROE of 19.48%. The company generates $69.0B in annual revenue with moderate year-over-year growth of 5.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ALFVY's fundamental strength across five key dimensions:
Efficiency Score
WeakALFVY struggles to generate sufficient returns from assets.
Valuation Score
ModerateALFVY shows balanced valuation metrics.
Growth Score
ExcellentALFVY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentALFVY maintains a strong and stable balance sheet.
Profitability Score
ModerateALFVY maintains healthy but balanced margins.
Key Financial Metrics
Is ALFVY Expensive or Cheap?
P/E Ratio
ALFVY trades at 26.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ALFVY's PEG of -2.27 indicates potential undervaluation.
Price to Book
The market values Alfa Laval AB (publ) at 5.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.43 times EBITDA. This signals the market has high growth expectations.
How Well Does ALFVY Make Money?
Net Profit Margin
For every $100 in sales, Alfa Laval AB (publ) keeps $11.88 as profit after all expenses.
Operating Margin
Core operations generate 17.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.48 in profit for every $100 of shareholder equity.
ROA
Alfa Laval AB (publ) generates $8.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alfa Laval AB (publ) produces operating cash flow of $8.81B, showing steady but balanced cash generation.
Free Cash Flow
Alfa Laval AB (publ) produces free cash flow of $6.18B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.95 in free cash annually.
FCF Yield
ALFVY converts 2.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ALFVY Stacks Against Its Sector Peers
| Metric | ALFVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.63 | 26.49 | Neutral |
| ROE | 19.48% | 1307.00% | Weak |
| Net Margin | 11.88% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.18 | 10.48 | Neutral |
| ROA | 8.35% | -1549792.00% (disorted) | Weak |
ALFVY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alfa Laval AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
36.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
136.25%
Industry Style: Cyclical, Value, Infrastructure
High Growth