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1. Company Snapshot

1.a. Company 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 riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries.Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, 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.

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1.b. Last Insights on ATCO

Atlas Copco's recent performance has been influenced by steady financials and shifting market conditions. The company's valuation has been explored after recent share price movements. A Zacks Rank #2 (Buy) upgrade reflects growing optimism about its earnings prospects. Nigeria's heavy construction equipment market, where Atlas Copco operates, offers opportunities in infrastructure and residential construction. Additionally, the Saudi Arabia Ventilator Market, where Atlas Copco has a presence, is driven by expanding critical care infrastructure under Vision 2030.

1.c. Company Highlights

2. Atlas Copco's Mixed Q3 2025: Stable Orders, Revenue Growth

Atlas Copco reported revenues of SEK 41.6 billion for Q3 2025, a 1% organic growth, with orders received at SEK 40.5 billion, remaining stable in line with Q2 guidance. The operating margin was 20.5%, or 21.3% when adjusted for restructuring costs. Earnings per share (EPS) came in at SEK 1.36, slightly below estimates of SEK 1.37. The profit before tax was SEK 8.5 billion, with an effective tax rate of 21.1%, resulting in a total profit for the period of SEK 6.7 billion.

Publication Date: Oct -24

📋 Highlights
  • Mixed Demand and Stable Orders:: Orders received at SEK 40.5 billion, with revenues up 1% organically to SEK 41.6 billion.
  • Operating Margin Resilience:: Operating margin at 20.5% (21.3% adjusted), despite restructuring costs and tariffs impacting profitability.
  • Geographic Growth:: North America and Europe saw 10% growth each, while South America showed positive development.
  • Strategic Acquisitions:: Completed six acquisitions, including ABC Compressors (hydrogen/CO2 focus) and Shareway (China joint venture).

Segment Performance

The company's business areas showed mixed performance: Compressor Technique had flat orders, Vacuum Technique saw 1% growth driven by industrial and scientific vacuum, Industrial Technique declined by 3% mainly due to automotive headwinds, and Power Technique showed solid growth in equipment and rental. Geographically, North America and Europe saw significant growth of 10%, while Asia had a modest 1% growth.

Acquisitions and Investments

Atlas Copco completed six acquisitions, including ABC Compressors and Shareway, a joint venture in China, enhancing its capabilities in hydrogen, CO2 applications, and driving development in China. The company has also invested in its Wuxi campus, boosting R&D capabilities. These strategic moves are expected to drive future growth, particularly in emerging markets and innovative technologies.

Valuation and Outlook

With a P/E Ratio of 28.94 and an EV/EBITDA of 18.26, the market appears to have priced in a certain level of growth. The Dividend Yield stands at 1.8%, indicating a relatively stable return for shareholders. Analysts estimate a revenue growth of 4.8% for the next year. The company's near-term outlook remains cautious due to external uncertainties, but its focus on innovation and strategic acquisitions positions it well for long-term growth.

Operational Highlights

The company generated an operating cash flow of SEK 7.3 billion and expects a continued negative currency impact on profitability. It remains cautious on semi-capEx for Q4 but sees no reason to alter its current trajectory. The vacuum pump market shows stable pricing, with a focus on delivering superior value to customers.

3. NewsRoom

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Atlas Copco (OM:ATCO A): Exploring Valuation After Recent Share Price Movements

Nov -16

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Are Industrial Products Stocks Lagging Atlas Copco (ATLKY) This Year?

Nov -14

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Nigeria Heavy Construction Equipment Industry Report 2025, Competitive Analysis of Atlas Copco, Tata Africa, Caterpillar, CNH Industrial, Komatsu, Deere & Co, and Volvo - Firecast to 2034

Nov -11

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$12.49 Bn Industrial Oxygen Generator Market Analysis by Gas Type and Flow Rate, Size, Design, Technology, End-Use Industry - Global Forecast to 2030

Nov -04

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Is Atlas Copco (ATLKY) Stock Outpacing Its Industrial Products Peers This Year?

Oct -29

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Atlas Copco (OM:ATCO A) Valuation: Is the Recent Recovery Signaling an Undervalued Opportunity?

Oct -15

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Is Atmus Filtration Technologies Inc. (ATMU) Outperforming Other Industrial Products Stocks This Year?

Oct -13

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Saudi Arabia Ventilator Market Analysis & Opportunity Report 2025 Featuring Draeger, Becton, Dickinson and Co, Philips Healthcare, Medtronic, GE Healthcare, and Atlas Copco

Oct -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Compressor Technique (Excl. Vacuum Technique)

Expected Growth: 6.0%

The growing demand for energy-efficient and sustainable compressor solutions drives growth. Atlas Copco's strong market position and innovative products, such as oil-free compressors, are expected to fuel growth in this segment.

Power Technique

Expected Growth: 4.5%

The increasing need for reliable and efficient power solutions in emerging markets and the growing demand for rental power solutions are expected to drive growth. Atlas Copco's diversified product portfolio and strong distribution network support this growth.

Vacuum Technique

Expected Growth: 7.0%

The growing demand for vacuum solutions in industries such as semiconductors, pharmaceuticals, and analytics is expected to drive growth. Atlas Copco's innovative products and strong technical expertise support this growth.

Industrial Technique

Expected Growth: 5.5%

The growing demand for industrial automation and digitalization drives growth. Atlas Copco's strong market position and innovative products, such as its Smart Integrated Assembly solutions, are expected to fuel growth in this segment.

Eliminations

Expected Growth: 0.0%

As this segment only includes eliminations, no growth is expected. It is used to ensure accurate reporting and eliminate duplicate entries.

7. Detailed Products

Compressors

Atlas Copco offers a wide range of compressors, including oil-free and oil-injected compressors, for various industries such as manufacturing, oil and gas, and construction.

Vacuum Pumps

Atlas Copco's vacuum pumps are designed for various applications, including industrial processes, laboratory, and medical applications.

Industrial Tools and Assembly Systems

Atlas Copco offers a range of industrial tools and assembly systems for various industries, including automotive, aerospace, and general industry.

Construction and Mining Equipment

Atlas Copco provides a range of construction and mining equipment, including drill rigs, loaders, and haul trucks.

Rock Drilling Equipment

Atlas Copco's rock drilling equipment is designed for surface and underground drilling applications in mining, construction, and quarrying.

Exploration Drilling Equipment

Atlas Copco's exploration drilling equipment is designed for mineral exploration, water well drilling, and geotechnical drilling.

8. Atlas Copco AB's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Atlas Copco AB is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Atlas Copco's products and services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Atlas Copco's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a competitive pricing environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.73%
Debt Cost 3.95%
Equity Weight 76.27%
Equity Cost 8.15%
WACC 7.15%
Leverage 31.12%

11. Quality Control: Atlas Copco AB passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Siemens

A-Score: 5.5/10

Value: 3.6

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 7.5

Volatility: 6.3

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Alfa Laval

A-Score: 5.4/10

Value: 2.7

Growth: 6.9

Quality: 6.8

Yield: 3.8

Momentum: 3.0

Volatility: 9.0

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Schindler

A-Score: 5.3/10

Value: 1.1

Growth: 3.9

Quality: 7.2

Yield: 3.1

Momentum: 7.0

Volatility: 9.7

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Atlas Copco

A-Score: 5.3/10

Value: 1.8

Growth: 6.9

Quality: 7.7

Yield: 6.9

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Eaton

A-Score: 4.5/10

Value: 0.7

Growth: 5.9

Quality: 6.9

Yield: 2.5

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Schneider Electric

A-Score: 4.3/10

Value: 1.3

Growth: 5.6

Quality: 6.3

Yield: 2.5

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

167.8$

Current Price

167.8$

Potential

-0.00%

Expected Cash-Flows