-0.56%
14.31%
10.05%
4.93%
4.83%
-5.08%
30.57%

Company Description

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally.The company offers mining and rock solutions, including drill rigs, underground loaders and trucks, rock drills and other tools, and parts and services, as well as digital and sustainability solutions; and rock processing applications, which include crushing, screening, feeding, breaking, demolition, and recycling.It also provides manufacturing solutions, comprising traditional metal cutting under the Sandvik Coromant, Walter, Wolfram, Seco, and Dormer Pramet brands; and manufactures tools and tooling systems for advanced metal cutting.


In addition, the company develops and manufactures advanced stainless steels, powder-based alloys, and special alloys.It serves aerospace, automotive, construction, mining, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries.The company was founded in 1862 and is headquartered in Stockholm, Sweden.

Market Data

Last Price 230
Change Percentage -0.56%
Open 232.9
Previous Close 231.3
Market Cap ( Millions) 288510
Volume 1411289
Year High 247.3
Year Low 195.55
M A 50 207.26
M A 200 214.39

Financial Ratios

FCF Yield 5.44%
Dividend Yield 2.39%
ROE 13.27%
Debt / Equity 0.00%
Net Debt / EBIDTA -16.60%
Price To Book 2.98
Price Earnings Ratio 23.56
Price To FCF 18.37
Price To sales 2.35
EV / EBITDA 10.41

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Sandvik Mining and Rock

Expected Growth : 4 %

What the company do ?

Sandvik Mining and Rock, a business area of Sandvik AB (publ), provides equipment, tools, and services for the mining and rock excavation industries.

Why we expect these perspectives ?

Sandvik Mining and Rock's 4% growth is driven by increasing demand for electrification and automation in mining, growing need for sustainable and efficient mining practices, and rising investments in infrastructure development. Additionally, the segment benefits from its strong market position, innovative product offerings, and strategic acquisitions.

Segment n°2 -> Sandvik Manufacturing and Machining

Expected Growth : 3 %

What the company do ?

Sandvik Manufacturing and Machining is a business segment of Sandvik AB, providing machining solutions, cutting tools, and machining systems for various industries.

Why we expect these perspectives ?

Sandvik Manufacturing and Machining's 3% growth is driven by increasing demand for industrial equipment, growth in the automotive and aerospace industries, and the company's strategic investments in digitalization and additive manufacturing. Additionally, the segment's focus on sustainability and energy-efficient solutions contributes to its growth.

Segment n°3 -> Sandvik Rock Processing

Expected Growth : 5 %

What the company do ?

Sandvik Rock Processing is a business segment of Sandvik AB (publ) that provides crushing and screening equipment for the mining and construction industries.

Why we expect these perspectives ?

Sandvik Rock Processing's 5% growth is driven by increasing demand for crushing and screening equipment in the mining and construction industries, supported by infrastructure development and urbanization. Additionally, the segment benefits from its strong aftermarket business, providing spare parts and services, which generates stable and recurring revenue.

Sandvik Ab (Publ) Products

Product Range What is it ?
Rock Drilling Tools Sandvik's rock drilling tools are designed for drilling and blasting in mining, quarrying, and construction applications.
Metal-Cutting Tools Sandvik's metal-cutting tools are designed for machining and cutting of metals in various industries.
Mining Systems Sandvik's mining systems provide a range of solutions for underground and surface mining operations.
Materials Technology Sandvik's materials technology provides advanced materials and manufacturing solutions.
Industrial Processes Sandvik's industrial processes provide solutions for industrial heating, cooling, and processing applications.
Additive Manufacturing Sandvik's additive manufacturing solutions provide 3D printing and rapid prototyping capabilities.
Digitalization and Automation Sandvik's digitalization and automation solutions provide data analytics, automation, and IoT solutions.

Sandvik AB (publ)'s Porter Forces

Sandvik AB (publ) operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products can be substituted with alternative materials or technologies, posing a moderate threat.

Sandvik AB (publ) has a diverse customer base, reducing the bargaining power of individual customers. The company's products are often customized, making it difficult for customers to switch suppliers.

Sandvik AB (publ) relies on a few critical suppliers for raw materials, giving them some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.

The capital-intensive nature of Sandvik AB (publ)'s business, combined with the need for specialized expertise and technology, creates a barrier to entry for new competitors.

The industrial equipment and tools market is highly competitive, with several established players competing for market share. Sandvik AB (publ) faces intense rivalry from companies like Atlas Copco and Epiroc.

Capital Structure

Value
Debt Weight 35.94%
Debt Cost 5.02%
Equity Weight 64.06%
Equity Cost 10.55%
WACC 8.57%
Leverage 56.11%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ETN Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single …
SCHP.SW Schindler Holding AG engages in the production, installation, maintenance, and modernization of elevators, escalators, and moving walks worldwide. It also offers digital media services for providing information, communication, and entertainment …
KNEBV.HE KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. It offers elevators, escalators, and automatic building doors. The company also provides maintenance services; modernization solutions; …
ALFA.ST Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in three divisions: Energy, Food & Water, and Marine. It offers oil/gas-fired …
SIE.DE Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
230.0$
Current Price
230$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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