Atlas Copco AB
Atlas Copco AB Fundamental Analysis
Atlas Copco AB (ATLPF) shows moderate financial fundamentals with a PE ratio of 36.86, profit margin of 15.69%, and ROE of 24.69%. The company generates $168.0B in annual revenue with weak year-over-year growth of 2.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.2/100 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 ATLPF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentATLPF demonstrates superior asset utilization.
Valuation Score
ModerateATLPF shows balanced valuation metrics.
Growth Score
WeakATLPF faces weak or negative growth trends.
Financial Health Score
ExcellentATLPF maintains a strong and stable balance sheet.
Profitability Score
ExcellentATLPF achieves industry-leading margins.
Key Financial Metrics
Is ATLPF Expensive or Cheap?
P/E Ratio
ATLPF trades at 36.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ATLPF's PEG of -0.96 indicates potential undervaluation.
Price to Book
The market values Atlas Copco AB at 8.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.88 times EBITDA. This signals the market has high growth expectations.
How Well Does ATLPF Make Money?
Net Profit Margin
For every $100 in sales, Atlas Copco AB keeps $15.69 as profit after all expenses.
Operating Margin
Core operations generate 20.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.69 in profit for every $100 of shareholder equity.
ROA
Atlas Copco AB generates $13.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Atlas Copco AB produces operating cash flow of $31.53B, showing steady but balanced cash generation.
Free Cash Flow
Atlas Copco AB generates strong free cash flow of $27.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.61 in free cash annually.
FCF Yield
ATLPF converts 2.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How ATLPF Stacks Against Its Sector Peers
| Metric | ATLPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.86 | 26.49 | Worse (Expensive) |
| ROE | 24.69% | 1307.00% | Weak |
| Net Margin | 15.69% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 10.48 | Neutral |
| ROA | 13.05% | -1549792.00% (disorted) | Strong |
ATLPF 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's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
79.71%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
127.70%
Industry Style: Cyclical, Value, Infrastructure
High Growth