Atlas Copco AB — Financial Overview, Stock Price, Market Cap

Financial Performance

5Y price score: 52

10Y return: 215.7%

DATE RANGE:

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149.4

52-week range

214.1

176.3

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Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

3.4 %

Dividend Yield TTM

2.8 %

Market cap

860,101

Price / Earnings TTM

31.1

Price / Book TTM

7.2

PEG TTM

(2.8)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

9.1 %

44.9 %

215.7 %

Free cash flow per share growth

20.8 %

45.6 %

85.7 %

Earnings per share growth

15.3 %

78.3 %

125.8 %

Founded: 1,873

Employees: 54,153

Business Summary: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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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 22, 2026)

1) Strong Order Intake and Revenue Growth - Orders received reached a record SEK 52.3 billion, reflecting a 25% organic growth. - Revenues also hit a record of SEK 47.9 billion, with an 11% organic growth. - Vacuum Technique led the growth with an outstanding 82% organic growth, while Compressor Technique grew by 6%. - All business areas showed positive growth, with North America and Asia achieving 39% growth each.

2) Profitability and Margin Insights - Profit margins were reported at 20.8%, with an underlying margin of 21.3% after accounting for restructuring costs in Industrial Technique. - Operating profit increased to SEK 9.95 billion, up from SEK 8.5 billion YoY. - The effective tax rate improved to 21%, benefiting from tax credits, but is expected to rise to around 22.5% in the next quarter. - Sequential improvement in margins was noted, despite challenges from supply chain costs and currency fluctuations.

3) Regional Performance and Market Dynamics - Growth was observed across all continents, with Asia showing a remarkable 39% increase. - Europe managed an 8% growth despite a challenging macro environment, particularly in Compressor Technique. - The company is facing increased competition, especially in Europe, but maintains a solid market position. - Supply chain pressures, particularly from inflation and commodity prices, are impacting margins.

4) Operational Plans and Acquisitions - Four acquisitions were completed during the quarter, enhancing market reach and capabilities. - The company is focused on ramping up production capacity, particularly in Vacuum Technique, to meet demand. - Continued investment in innovation is emphasized across all business areas to drive future growth. - The company is cautious about predicting Q4 performance due to seasonal factors and market uncertainties.

5) Guidance and Outlook - The company remains optimistic about the semiconductor market and expects continued strong activity levels. - There is uncertainty regarding the impact of seasonality on orders between Q3 and Q4. - Management indicated that while they expect some margin expansion, it may not reach the levels seen in previous quarters.

Bottom line: Atlas Copco's Q3 2026 results showcase robust growth driven by strong order intake and record revenues, particularly in Vacuum Technique. Despite facing supply chain challenges and increased competition, the company is well-positioned for continued growth, supported by strategic acquisitions and a focus on innovation. Investors should remain optimistic but cautious about potential seasonal fluctuations in Q4.