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Atlas Copco

OM:ATCO A
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATCO A
OM
SEK392B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The last earnings update was 33 days ago. More info.


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ATCO A Share Price and Events
7 Day Returns
6.5%
OM:ATCO A
7.4%
SE Machinery
4%
SE Market
1 Year Returns
22.7%
OM:ATCO A
-1.5%
SE Machinery
-6.4%
SE Market
ATCO A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Atlas Copco (ATCO A) 6.5% 7.5% -13.1% 22.7% 3.7% 13.3%
SE Machinery 7.4% -0.4% -18% -1.5% -1.4% 11.9%
SE Market 4% -8.3% -17.8% -6.4% -8.3% -9.9%
1 Year Return vs Industry and Market
  • ATCO A outperformed the Machinery industry which returned -1.5% over the past year.
  • ATCO A outperformed the Market in Sweden which returned -6.4% over the past year.
Price Volatility
ATCO A
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Atlas Copco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Atlas Copco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Atlas Copco.

OM:ATCO A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.1%
Perpetual Growth Rate 10-Year SE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:ATCO A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Machinery Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.988 (1 + (1- 22%) (6.03%))
1.023
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.42% + (1.023 * 5.44%)
5.14%

Discounted Cash Flow Calculation for OM:ATCO A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Atlas Copco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OM:ATCO A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 5.14%)
2020 17,501.55 Analyst x14 16,645.30
2021 16,762.41 Analyst x13 15,162.35
2022 18,439.40 Analyst x9 15,863.24
2023 22,228.00 Analyst x1 18,186.98
2024 22,900.00 Analyst x1 17,820.13
2025 23,309.42 Est @ 1.79% 17,251.30
2026 23,571.77 Est @ 1.13% 16,591.95
2027 23,727.78 Est @ 0.66% 15,884.64
2028 23,807.81 Est @ 0.34% 15,158.45
2029 23,834.02 Est @ 0.11% 14,432.71
Present value of next 10 years cash flows SEK162,997.00
OM:ATCO A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SEK23,834.02 × (1 + -0.42%) ÷ (5.14% – -0.42%)
SEK426,553.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK426,553.80 ÷ (1 + 5.14%)10
SEK258,299.97
OM:ATCO A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK162,997.00 + SEK258,299.97
SEK421,296.97
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK421,296.97 / 1,217.05
SEK346.16
OM:ATCO A Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK346.16
Current discount Discount to share price of SEK331.50
= -1 x (SEK331.50 - SEK346.16) / SEK346.16
4.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Atlas Copco is available for.
Intrinsic value
4%
Share price is SEK331.5 vs Future cash flow value of SEK346.16
Current Discount Checks
For Atlas Copco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Atlas Copco's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Atlas Copco's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Atlas Copco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Atlas Copco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:ATCO A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in SEK SEK13.60
OM:ATCO A Share Price ** OM (2020-04-08) in SEK SEK331.5
Sweden Machinery Industry PE Ratio Median Figure of 17 Publicly-Listed Machinery Companies 14.36x
Sweden Market PE Ratio Median Figure of 357 Publicly-Listed Companies 15.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Atlas Copco.

OM:ATCO A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:ATCO A Share Price ÷ EPS (both in SEK)

= 331.5 ÷ 13.60

24.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Atlas Copco is overvalued based on earnings compared to the SE Machinery industry average.
  • Atlas Copco is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does Atlas Copco's expected growth come at a high price?
Raw Data
OM:ATCO A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
5%per year
Sweden Machinery Industry PEG Ratio Median Figure of 15 Publicly-Listed Machinery Companies 1.7x
Sweden Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

OM:ATCO A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.37x ÷ 5%

4.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Atlas Copco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Atlas Copco's assets?
Raw Data
OM:ATCO A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in SEK SEK43.74
OM:ATCO A Share Price * OM (2020-04-08) in SEK SEK331.5
Sweden Machinery Industry PB Ratio Median Figure of 38 Publicly-Listed Machinery Companies 2.41x
Sweden Market PB Ratio Median Figure of 775 Publicly-Listed Companies 2.2x
OM:ATCO A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:ATCO A Share Price ÷ Book Value per Share (both in SEK)

= 331.5 ÷ 43.74

7.58x

* Primary Listing of Atlas Copco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Atlas Copco is overvalued based on assets compared to the SE Machinery industry average.
X
Value checks
We assess Atlas Copco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Atlas Copco has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Atlas Copco expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Atlas Copco expected to grow at an attractive rate?
  • Atlas Copco's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Atlas Copco's earnings growth is positive but not above the Sweden market average.
  • Atlas Copco's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:ATCO A Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:ATCO A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 5%
OM:ATCO A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 2.4%
Sweden Machinery Industry Earnings Growth Rate Market Cap Weighted Average 4.6%
Sweden Machinery Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.9%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:ATCO A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:ATCO A Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 108,314 1
2023-12-31 111,734 22,222 19,990 3
2022-12-31 111,168 22,518 18,776 15
2021-12-31 106,330 20,386 17,167 22
2020-12-31 99,608 21,091 14,881 22
2020-04-08
OM:ATCO A Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-12-31 103,756 16,151 16,522
2019-09-30 101,758 16,168 17,396
2019-06-30 98,757 15,410 16,874
2019-03-31 97,638 17,753 16,429
2019-01-01 95,363 16,814 16,065
2018-09-30 92,687 18,419 14,031
2018-06-30 90,045 20,595 13,685
2018-03-31 86,981 19,847 13,083
2017-12-31 85,653 21,380 12,639
2017-09-30 91,503 20,864 13,716
2017-06-30 96,313 19,941 13,600
2017-03-31 99,481 18,008 13,762

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Atlas Copco's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Atlas Copco's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:ATCO A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Atlas Copco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ATCO A Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 15.65 16.40 14.90 2.00
2022-12-31 14.98 16.77 13.19 12.00
2021-12-31 14.14 15.67 12.44 21.00
2020-12-31 12.52 14.55 9.84 21.00
2020-04-08
OM:ATCO A Past Financials Data
Date (Data in SEK Millions) EPS *
2019-12-31 13.60
2019-09-30 14.33
2019-06-30 13.91
2019-03-31 13.54
2019-01-01 13.24
2018-09-30 11.56
2018-06-30 11.27
2018-03-31 10.78
2017-12-31 10.41
2017-09-30 11.29
2017-06-30 11.19
2017-03-31 11.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Atlas Copco is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Atlas Copco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Atlas Copco has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Atlas Copco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Atlas Copco's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Atlas Copco's year on year earnings growth rate has been positive over the past 5 years.
  • Atlas Copco's 1-year earnings growth is less than its 5-year average (3% vs 7.1%)
  • Atlas Copco's earnings growth has exceeded the SE Machinery industry average in the past year (3% vs -2.4%).
Earnings and Revenue History
Atlas Copco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Atlas Copco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ATCO A Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 103,756.00 16,522.00 19,362.00 3,617.00
2019-09-30 101,758.00 17,396.00 18,724.00 3,460.00
2019-06-30 98,757.00 16,874.00 18,311.00 3,306.00
2019-03-31 97,638.00 16,429.00 17,900.00 3,254.00
2019-01-01 95,363.00 16,065.00 17,249.00 3,140.00
2018-09-30 92,687.00 14,031.00 16,649.00 3,011.00
2018-06-30 90,045.00 13,685.00 16,195.00 2,974.00
2018-03-31 86,981.00 13,083.00 15,672.00 2,844.00
2017-12-31 85,653.00 12,639.00 15,546.00 2,757.00
2017-09-30 91,503.00 13,716.00 16,742.00 2,922.00
2017-06-30 96,313.00 13,600.00 17,400.00 2,940.00
2017-03-31 99,481.00 13,762.00 17,726.00 2,989.00
2016-12-31 101,356.00 13,768.00 17,882.00 3,068.00
2016-09-30 95,255.00 10,609.00 16,861.00 2,830.00
2016-06-30 95,135.00 10,980.00 16,386.00 2,940.00
2016-03-31 96,681.00 11,433.00 16,484.00 2,987.00
2015-12-31 98,973.00 11,771.00 16,966.00 3,021.00
2015-09-30 101,939.00 14,020.00 17,049.00 3,149.00
2015-06-30 99,806.00 13,093.00 16,920.00 3,034.00
2015-03-31 97,043.00 12,649.00 16,413.00 2,957.00
2014-12-31 93,721.00 12,169.00 15,516.00 2,857.00
2014-09-30 89,627.00 11,738.00 14,797.00 2,705.00
2014-06-30 86,589.00 11,911.00 14,163.00 2,466.00
2014-03-31 85,084.00 11,840.00 13,572.00 2,269.00
2013-12-31 83,888.00 12,072.00 13,153.00 2,105.00
2013-09-30 85,370.00 12,583.00 13,280.00 2,030.00
2013-06-30 86,912.00 13,016.00 13,251.00 1,987.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Atlas Copco has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Atlas Copco used its assets more efficiently than the SE Machinery industry average last year based on Return on Assets.
  • Atlas Copco has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Atlas Copco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Atlas Copco has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Atlas Copco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Atlas Copco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Atlas Copco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Atlas Copco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Atlas Copco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Atlas Copco Company Filings, last reported 3 months ago.

OM:ATCO A Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 53,290.00 20,012.00 15,078.00
2019-09-30 50,582.00 23,426.00 13,858.00
2019-06-30 44,262.00 19,495.00 11,839.00
2019-03-31 47,456.00 18,823.00 13,592.00
2019-01-01 42,472.00 20,361.00 16,523.00
2018-09-30 37,377.00 20,661.00 12,314.00
2018-06-30 35,002.00 20,968.00 9,619.00
2018-03-31 67,591.00 22,966.00 23,335.00
2017-12-31 60,601.00 25,017.00 24,558.00
2017-09-30 54,782.00 24,615.00 21,502.00
2017-06-30 51,792.00 25,184.00 16,304.00
2017-03-31 56,593.00 25,058.00 16,836.00
2016-12-31 53,177.00 24,552.00 11,719.00
2016-09-30 50,502.00 24,854.00 12,460.00
2016-06-30 46,220.00 23,912.00 11,061.00
2016-03-31 49,236.00 23,240.00 13,129.00
2015-12-31 46,750.00 22,816.00 9,138.00
2015-09-30 46,691.00 23,392.00 9,953.00
2015-06-30 43,074.00 26,203.00 8,211.00
2015-03-31 54,995.00 23,660.00 12,485.00
2014-12-31 50,753.00 24,288.00 9,710.00
2014-09-30 44,677.00 25,662.00 8,270.00
2014-06-30 40,220.00 25,727.00 7,307.00
2014-03-31 42,227.00 25,667.00 11,845.00
2013-12-31 39,794.00 25,479.00 17,910.00
2013-09-30 36,066.00 25,427.00 17,702.00
2013-06-30 34,031.00 26,250.00 15,639.00
  • Atlas Copco's level of debt (37.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47.8% vs 37.6% today).
  • Debt is well covered by operating cash flow (80.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 71.1x coverage).
X
Financial health checks
We assess Atlas Copco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Atlas Copco has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Atlas Copco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.11%
Current annual income from Atlas Copco dividends. Estimated to be 2.19% next year.
If you bought SEK2,000 of Atlas Copco shares you are expected to receive SEK42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Atlas Copco's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.98%).
  • Atlas Copco's dividend is below the markets top 25% of dividend payers in Sweden (5.83%).
Upcoming dividend payment

Purchase Atlas Copco before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:ATCO A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
Sweden Machinery Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 217 Stocks 3.8%
Sweden Minimum Threshold Dividend Yield 10th Percentile 0.9%
Sweden Bottom 25% Dividend Yield 25th Percentile 2%
Sweden Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:ATCO A Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 8.30 1.00
2022-12-31 7.76 15.00
2021-12-31 7.42 22.00
2020-12-31 6.76 22.00
2020-04-08
OM:ATCO A Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2020-03-17 7.000 2.268
2019-03-08 6.300 2.057
2019-01-28 6.300 2.564
2018-03-20 7.000 2.711
2017-03-22 6.800 2.026
2016-04-27 6.300 2.493
2015-01-29 6.000 2.669
2014-04-30 5.500 2.681
2013-01-31 5.500 3.071
2012-04-30 5.000 3.160
2011-04-21 4.000 2.664
2010-04-29 3.000 2.208
2009-04-28 3.000 3.243

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Atlas Copco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Atlas Copco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Atlas Copco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Atlas Copco has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Atlas Copco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mats Rahmström
COMPENSATION SEK50,131,000
AGE 54
TENURE AS CEO 3 years
CEO Bio

Mr. Mats Rahmström has been the Chief Executive Officer and President of Atlas Copco AB since April 27, 2017. Mr. Rahmström served as Senior Executive Vice President and Business Area President for Industrial Technique at Atlas Copco AB from June 1, 2008 to April 26, 2017. Mr. Rahmström has been with Atlas Copco in 1988. He serves as President of the Atlas Copco Tools General Industry division within Industrial Technique. Previously, he has held positions in sales, service, marketing and general management. From 1998 to 2006, he served as the General Manager for customer centers in Sweden, Canada and Great Britain. He has been a Director of Atlas Copco AB since April 26, 2017. He serves as a Director of Permobil AB. Mr. Rahmström holds an MBA from the Henley Management College, Great Britain in 2005.

CEO Compensation
  • Mats's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mats's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Atlas Copco management team in years:

3.3
Average Tenure
58.5
Average Age
  • The tenure for the Atlas Copco management team is about average.
Management Team

Mats Rahmström

TITLE
President
COMPENSATION
SEK50M
AGE
54
TENURE
3 yrs

Joeri Ooms

TITLE
President of Industrial Air

Hans Meyer

TITLE
CFO and Senior VP of Controlling & Finance
AGE
64
TENURE
21.3 yrs

Mats Högberg

TITLE
Chief Information officer & VP
TENURE
15.7 yrs

Daniel Althoff

TITLE
Vice President of Investor Relations

Håkan Osvald

TITLE
Senior VP
AGE
65
TENURE
8.3 yrs

Gisela Lindstrand

TITLE
Senior Vice President of Corporate Communications & Governmental Affairs
AGE
57
TENURE
1.9 yrs

Cecilia Sandberg

TITLE
Senior Vice President of Human Resources
AGE
51
TENURE
3.3 yrs

Geert Follens

TITLE
Senior EVP & Business Area President of Vacuum Technique
AGE
60
TENURE
3.3 yrs

Ray Löfgren

TITLE
Chairman of the Atlas Copco Compressors Customer Center & President of Specialty Rental
Board of Directors Tenure

Average tenure and age of the Atlas Copco board of directors in years:

7
Average Tenure
59.5
Average Age
  • The tenure for the Atlas Copco board of directors is about average.
Board of Directors

Hans Stråberg

TITLE
Chairman of the Board
COMPENSATION
SEK3M
AGE
62
TENURE
6 yrs

Mats Rahmström

TITLE
President
COMPENSATION
SEK50M
AGE
54
TENURE
3 yrs

Staffan Bohman

TITLE
Independent Director
COMPENSATION
SEK1M
AGE
70
TENURE
17.3 yrs

Mikael Bergstedt

TITLE
Union Representative Director
AGE
59
TENURE
16.3 yrs

Anders Ullberg

TITLE
Independent Director
COMPENSATION
SEK908K
AGE
73
TENURE
17.3 yrs

Johan Forssell

TITLE
Director
COMPENSATION
SEK933K
AGE
48
TENURE
12 yrs

Peter Wallenberg

TITLE
Director
COMPENSATION
SEK823K
AGE
60
TENURE
8 yrs

Sabine Neuß

TITLE
Independent Director
COMPENSATION
SEK730K
AGE
51
TENURE
4 yrs

Gunilla Kristina Berg

TITLE
Independent Director
COMPENSATION
SEK933K
AGE
59
TENURE
4 yrs

Tina Donikowski

TITLE
Independent Director
COMPENSATION
SEK735K
AGE
60
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Atlas Copco individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
20. Mar 20 Buy Håkan Osvald Individual 20. Mar 20 20. Mar 20 2,000 SEK279.50 SEK559,000
05. Mar 20 Buy Cecilia Sandberg Individual 05. Mar 20 05. Mar 20 300 SEK344.40 SEK103,320
28. Feb 20 Buy Mats Rahmström Individual 28. Feb 20 28. Feb 20 1,500 SEK335.80 SEK503,700
16. Nov 19 Buy Cecilia Sandberg Individual 14. Nov 19 14. Nov 19 663 SEK355.58 SEK235,750
15. Nov 19 Buy Henrik Elmin Individual 14. Nov 19 14. Nov 19 403 SEK355.58 SEK143,299
X
Management checks
We assess Atlas Copco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Atlas Copco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Atlas Copco AB (STO:ATCO A) Looks Like A Quality Company

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Atlas Copco: 38% = kr17b ÷ kr44b (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Atlas Copco Have A Good Return On Equity? … Combining Atlas Copco's Debt And Its 38% Return On Equity Atlas Copco has a debt to equity ratio of 0.44, which is far from excessive.

Simply Wall St -

Should You Be Tempted To Sell Atlas Copco AB (STO:ATCO A) Because Of Its P/E Ratio?

See our latest analysis for Atlas Copco How Do You Calculate Atlas Copco's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Atlas Copco: P/E of 19.63 = SEK273 ÷ SEK13.91 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … OM:ATCO A Price Estimation Relative to Market, August 24th 2019 Its relatively high P/E ratio indicates that Atlas Copco shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

A Look At The Fair Value Of Atlas Copco AB (STO:ATCO A)

In this article we are going to estimate the intrinsic value of Atlas Copco AB (STO:ATCO A) by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (SEK, Millions) SEK16.8b SEK17.8b SEK18.5b SEK19.1b SEK19.5b SEK19.8b SEK20.1b SEK20.3b SEK20.5b SEK20.6b Growth Rate Estimate Source Analyst x14 Analyst x11 Est @ 4.13% Est @ 3.02% Est @ 2.25% Est @ 1.7% Est @ 1.32% Est @ 1.06% Est @ 0.87% Est @ 0.74% Present Value (SEK, Millions) Discounted @ 6.8% SEK15.7k SEK15.6k SEK15.2k SEK14.7k SEK14.0k SEK13.4k SEK12.7k SEK12.0k SEK11.3k SEK10.7k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= SEK135.2b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = kr21b × (1 + 0.4%) ÷ (6.8% – 0.4%) = kr326b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = SEKkr326b ÷ ( 1 + 6.8%)10 = SEK168.68b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SEK303.89b.

Simply Wall St -

Is Atlas Copco (STO:ATCO A) Using Too Much Debt?

We note that Atlas Copco AB (STO:ATCO A) does have debt on its balance sheet. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … During the last three years, Atlas Copco produced sturdy free cash flow equating to 78% of its EBIT, about what we'd expect.

Simply Wall St -

The Atlas Copco (STO:ATCO A) Share Price Is Up 54% And Shareholders Are Holding On

For example, the Atlas Copco AB (STO:ATCO A) share price is up 54% in the last 5 years, clearly besting than the market return of around 25% (ignoring dividends). … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … A Different Perspective It's good to see that Atlas Copco has rewarded shareholders with a total shareholder return of 26% in the last twelve months.

Simply Wall St -

Is It Time To Consider Buying Atlas Copco AB (STO:ATCO A)?

Atlas Copco AB (STO:ATCO A) saw a double-digit share price rise of over 10% in the past couple of months on the OM. … Since Atlas Copco’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. … ATCO A’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Why Atlas Copco AB (STO:ATCO A) Could Be Your Next Investment

OM:ATCO A Income Statement, June 19th 2019 Next Steps: For Atlas Copco, there are three fundamental aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for ATCO A’s future growth? … Take a look at our free research report of analyst consensus for ATCO A’s outlook. … The intrinsic value infographic in our free research report helps visualize whether ATCO A is currently mispriced by the market.

Simply Wall St -

How Many Atlas Copco AB (STO:ATCO A) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in Atlas Copco AB (STO:ATCO A). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Atlas Copco The Last 12 Months Of Insider Transactions At Atlas Copco In the last twelve months, the biggest single sale by an insider was when the , Andrew Walker, sold kr9.4m worth of shares at a price of kr264 per share. … While we feel good about high insider ownership of Atlas Copco, we can't say the same about the selling of shares.

Simply Wall St -

Atlas Copco AB (STO:ATCO A) Is Yielding 2.4% - But Is It A Buy?

Dividend paying stocks like Atlas Copco AB (STO:ATCO A) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. With a 2.4% yield and a nine-year payment history, investors probably think Atlas Copco looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. The company also bought back stock during the year, equivalent to approximately 3.1% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Atlas Copco has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. … Atlas Copco's dividend payout ratios are within normal bounds, although we note its cash flow is not as strong as the income statement would suggest.

Simply Wall St -

Will Atlas Copco AB's (STO:ATCO A) Earnings Grow In Next 12 Months?

Based on Atlas Copco AB's (STO:ATCO A) earnings update in March 2019, the consensus outlook from analysts appear bearish, with profits predicted to drop by 1.4% next year against the past 5-year average growth rate of 7.2%. … To get an idea of the overall earnings growth trend for ATCO A, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … OM:ATCO A Past and Future Earnings, May 27th 2019 By 2022, ATCO A's earnings should reach kr18b, from current levels of kr16b, resulting in an annual growth rate of 5.9%.

Simply Wall St -

Company Info

Description

Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce rivets, adhesives, and flow drill fasteners for the motor vehicle industry; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; and material removal tools, drills, and other pneumatic products. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, construction, and demolition applications, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.

Details
Name: Atlas Copco AB
ATCO A
Exchange: OM
Founded: 1873
SEK392,414,262,167
1,217,046,264
Website: http://www.atlascopcogroup.com/en
Address: Atlas Copco AB
Sickla Industriväg 19,
Nacka,
Stockholm County, Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM ATCO A Series A Shares OMX Nordic Exchange Stockholm SE SEK 02. Jan 1980
OTCPK ATLK.F Series A Shares Pink Sheets LLC US USD 02. Jan 1980
DB ACO2 Series A Shares Deutsche Boerse AG DE EUR 02. Jan 1980
LSE 0XXT Series A Shares London Stock Exchange GB SEK 02. Jan 1980
BMV ACOF N Series A Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1980
BATS-CHIXE ATCOAS Series A Shares BATS 'Chi-X Europe' GB SEK 02. Jan 1980
BATS-CHIXE ATCOAS Series A Shares BATS 'Chi-X Europe' GB SEK 02. Jan 1980
OTCPK ATLC.Y SP ADR B NEW Pink Sheets LLC US USD 25. Jun 2003
OTCPK ATLK.Y SP ADR A NEW Pink Sheets LLC US USD 26. Jun 1992
OM ATCO B Series B Shares OMX Nordic Exchange Stockholm SE SEK 10. Feb 1992
OM ATCO B SER'B'NPV (POST SPLIT) OMX Nordic Exchange Stockholm SE SEK 27. May 2015
OTCPK ATTL.F Series B Shares Pink Sheets LLC US USD 10. Feb 1992
DB ACOG Series B Shares Deutsche Boerse AG DE EUR 10. Feb 1992
BST ACO1 Series B Shares Boerse-Stuttgart DE EUR 10. Feb 1992
LSE 0XXV Series B Shares London Stock Exchange GB SEK 10. Feb 1992
BATS-CHIXE ATCOBS Series B Shares BATS 'Chi-X Europe' GB SEK 10. Feb 1992
BATS-CHIXE ATCOBS Series B Shares BATS 'Chi-X Europe' GB SEK 10. Feb 1992
Number of employees
Current staff
Staff numbers
38,774
Atlas Copco employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 21:24
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/03/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.