ATLAS COPCO AB-A SHS (1ATCA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ATCA - SE0006886750 - Common Stock
18.31 EUR
+1.27 (+7.45%)
1ATCA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 115 industry peers in the Machinery industry. While 1ATCA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1ATCA has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1ATCA had positive earnings in the past year.
- In the past year 1ATCA had a positive cash flow from operations.
- Each year in the past 5 years 1ATCA has been profitable.
- 1ATCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ATCA's Return On Assets of 14.12% is amongst the best of the industry. 1ATCA outperforms 95.65% of its industry peers.
- 1ATCA has a Return On Equity of 27.91%. This is amongst the best in the industry. 1ATCA outperforms 93.04% of its industry peers.
- 1ATCA has a Return On Invested Capital of 20.30%. This is amongst the best in the industry. 1ATCA outperforms 93.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1ATCA is significantly above the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 27.91% | ||
| ROIC | 20.3% |
ROA(3y)14.42%
ROA(5y)13.91%
ROE(3y)28.74%
ROE(5y)28.16%
ROIC(3y)20.83%
ROIC(5y)19.87%
1.3 Margins
- Looking at the Profit Margin, with a value of 16.23%, 1ATCA belongs to the top of the industry, outperforming 93.91% of the companies in the same industry.
- 1ATCA's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 21.07%, 1ATCA belongs to the top of the industry, outperforming 93.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1ATCA has remained more or less at the same level.
- 1ATCA has a Gross Margin (43.02%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of 1ATCA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.07% | ||
| PM (TTM) | 16.23% | ||
| GM | 43.02% |
OM growth 3Y1%
OM growth 5Y0.43%
PM growth 3Y1.01%
PM growth 5Y1.13%
GM growth 3Y0.7%
GM growth 5Y-0.12%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ATCA is creating value.
- The number of shares outstanding for 1ATCA remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1ATCA remains at a similar level compared to 5 years ago.
- 1ATCA has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of 1ATCA is 1.18, which is an excellent value as it means it would take 1ATCA, only 1.18 years of fcf income to pay off all of its debts.
- 1ATCA has a Debt to FCF ratio of 1.18. This is amongst the best in the industry. 1ATCA outperforms 89.57% of its industry peers.
- 1ATCA has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- 1ATCA has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: 1ATCA outperforms 51.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACC2.93
WACC6.93%
2.3 Liquidity
- 1ATCA has a Current Ratio of 1.55. This is a normal value and indicates that 1ATCA is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of 1ATCA (1.55) is comparable to the rest of the industry.
- 1ATCA has a Quick Ratio of 1.09. This is a normal value and indicates that 1ATCA is financially healthy and should not expect problems in meeting its short term obligations.
- 1ATCA's Quick ratio of 1.09 is in line compared to the rest of the industry. 1ATCA outperforms 58.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The earnings per share for 1ATCA have decreased by -6.79% in the last year.
- 1ATCA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
- The Revenue has decreased by -2.38% in the past year.
- Measured over the past years, 1ATCA shows a quite strong growth in Revenue. The Revenue has been growing by 11.24% on average per year.
EPS 1Y (TTM)-6.79%
EPS 3Y17.26%
EPS 5Y12.06%
EPS Q2Q%-3.36%
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y16.81%
Revenue growth 5Y11.24%
Sales Q2Q%-3.44%
3.2 Future
- Based on estimates for the next years, 1ATCA will show a small growth in Earnings Per Share. The EPS will grow by 5.75% on average per year.
- Based on estimates for the next years, 1ATCA will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y-8.2%
EPS Next 2Y-1.08%
EPS Next 3Y2.6%
EPS Next 5Y5.75%
Revenue Next Year-3.65%
Revenue Next 2Y0.49%
Revenue Next 3Y2.72%
Revenue Next 5Y4.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 33.91 indicates a quite expensive valuation of 1ATCA.
- 1ATCA's Price/Earnings is on the same level as the industry average.
- 1ATCA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- 1ATCA is valuated quite expensively with a Price/Forward Earnings ratio of 32.25.
- Based on the Price/Forward Earnings ratio, 1ATCA is valued a bit more expensive than the industry average as 73.91% of the companies are valued more cheaply.
- 1ATCA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.91 | ||
| Fwd PE | 32.25 |
4.2 Price Multiples
- 76.52% of the companies in the same industry are cheaper than 1ATCA, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ATCA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 20.51 |
4.3 Compensation for Growth
- The excellent profitability rating of 1ATCA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.81
EPS Next 2Y-1.08%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
- 1ATCA has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
- 1ATCA's Dividend Yield is comparable with the industry average which is at 1.49.
- 1ATCA's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
- The dividend of 1ATCA is nicely growing with an annual growth rate of 12.29%!
Dividend Growth(5Y)12.29%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1ATCA pays out 50.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1ATCA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.3%
EPS Next 2Y-1.08%
EPS Next 3Y2.6%
ATLAS COPCO AB-A SHS / 1ATCA.MI FAQ
Can you provide the ChartMill fundamental rating for ATLAS COPCO AB-A SHS?
ChartMill assigns a fundamental rating of 5 / 10 to 1ATCA.MI.
Can you provide the valuation status for ATLAS COPCO AB-A SHS?
ChartMill assigns a valuation rating of 2 / 10 to ATLAS COPCO AB-A SHS (1ATCA.MI). This can be considered as Overvalued.
What is the profitability of 1ATCA stock?
ATLAS COPCO AB-A SHS (1ATCA.MI) has a profitability rating of 8 / 10.
How financially healthy is ATLAS COPCO AB-A SHS?
The financial health rating of ATLAS COPCO AB-A SHS (1ATCA.MI) is 6 / 10.
What is the earnings growth outlook for ATLAS COPCO AB-A SHS?
The Earnings per Share (EPS) of ATLAS COPCO AB-A SHS (1ATCA.MI) is expected to decline by -8.2% in the next year.