Epiroc AB (publ)
Epiroc AB (publ) Fundamental Analysis
Epiroc AB (publ) (EPIPF) shows moderate financial fundamentals with a PE ratio of 25.32, profit margin of 13.99%, and ROE of 20.36%. The company generates $60.7B in annual revenue with weak year-over-year growth of -2.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.5/100 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 EPIPF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEPIPF demonstrates superior asset utilization.
Valuation Score
ModerateEPIPF shows balanced valuation metrics.
Growth Score
WeakEPIPF faces weak or negative growth trends.
Financial Health Score
ExcellentEPIPF maintains a strong and stable balance sheet.
Profitability Score
ModerateEPIPF maintains healthy but balanced margins.
Key Financial Metrics
Is EPIPF Expensive or Cheap?
P/E Ratio
EPIPF trades at 25.32 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EPIPF's PEG of -0.52 indicates potential undervaluation.
Price to Book
The market values Epiroc AB (publ) at 4.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.14 times EBITDA. This signals the market has high growth expectations.
How Well Does EPIPF Make Money?
Net Profit Margin
For every $100 in sales, Epiroc AB (publ) keeps $13.99 as profit after all expenses.
Operating Margin
Core operations generate 19.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.36 in profit for every $100 of shareholder equity.
ROA
Epiroc AB (publ) generates $10.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Epiroc AB (publ) produces operating cash flow of $9.91B, showing steady but balanced cash generation.
Free Cash Flow
Epiroc AB (publ) generates strong free cash flow of $7.95B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.57 in free cash annually.
FCF Yield
EPIPF converts 3.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How EPIPF Stacks Against Its Sector Peers
| Metric | EPIPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.32 | 26.04 | Neutral |
| ROE | 20.36% | 1282.00% | Weak |
| Net Margin | 13.99% | -38546.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 2.43 | 10.55 | Strong Liquidity |
| ROA | 10.20% | -1499346.00% (disorted) | Strong |
EPIPF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Epiroc AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.99%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
58.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
31.83%
Industry Style: Cyclical, Value, Infrastructure
High Growth