Risk factor
Negligible price volatility
Profitability factor
Very strong margins and returns
About
Atlas Copco AB (publ) operates as a global industrial enterprise, delivering a comprehensive suite of solutions encompassing compressed air and gas systems, vacuum technology, energy generation, dewatering and industrial pumping equipment, specialized industrial power tools, and advanced assembly and machine vision systems. The company maintains a significant presence across North and South America, Europe, Africa, the Middle East, Asia, and Oceania. Its business is organized into four primary divisions: Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique. Atlas Copco's extensive product line features various types of compressors, including piston, oil-free tooth, scroll, rotary screw, and centrifugal models, alongside gas and process compressors, air and gas treatment solutions, and medical air systems. Within its vacuum offerings, it provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps, as well as turbomolecular and cryogenic pumps, integrated systems, and abatement solutions. For industrial applications, the company supplies assembly tools and solutions, self-pierce riveting and adhesive dispensing equipment, flow drill fastening tools, material removal tools, drills, other pneumatic products, and machine vision technologies. Furthermore, its portfolio includes construction and demolition tools, mobile compressors, generators, and energy storage systems, along with industrial and portable flow, power, and air products, supported by specialty rental services. The company caters to a wide array of sectors, such as semiconductor and flat panel manufacturing, industrial production, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, and textile industries. Established in 1873, Atlas Copco AB (publ) is headquartered in Nacka, Sweden.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI
Target Price
The average target price of ATCO-A.ST is 202 and suggests 11% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendat