Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SANDVIK AB. We currently have 7 research reports from 1 professional analysts.
|16Feb17 07:00||GNW||Sandal plc : Change of Adviser|
|26Jan17 12:20||GNW||Sandal plc : Issue of Equity|
|25Nov16 14:46||GNW||Sandal plc : Result of AGM|
|25Nov16 07:00||GNW||Sandal plc : AGM Statement|
|28Oct16 14:41||GNW||Notice of AGM|
|18Oct16 12:26||GNW||Final Results|
|11Oct16 07:01||GNW||Integration of Energenie MiHome and Amazon Echo|
Frequency of research reports
Research reports on
Surge in Mining demand and overall profitability
01 Feb 17
Sandvik reported strong figures in Q4 16, especially in the order intake and operating profitability. Order intake reached SEK22.0bn, corresponding to +8% organic growth due to improved demand in Mining and Machining Solutions. Revenues were flat in Q4 16 at SEK21.8bn. The operating margin reached 15% in Q4 16 versus 11.1% in Q4 15. Cash flow from operation was SEK4.4bn versus SEK3.4bn in Q4 15. EPS reached SEK1.68 in Q4 16 versus SEK-0.12 in Q4 15. The Board of Directors proposes a dividend of SEK2.75 (versus 2.50) per share. This would represent a yoy increase of 10%, while still safeguarding a strengthening of the balance sheet in the long term.
Efficiency plans begin to bear fruit
25 Oct 16
Main facts of the Q3 16 release: The order intake was flat yoy at SEK19.7bn, confirming the stabilisation of the business. Notably, order intake excluding major orders also remained stable. Revenue decreased 5% organically, and corresponded more or less to the overall performance in each division. Despite this decrease in revenue, the company managed to deliver a 13.3% operating margin (versus 11.2% in Q3 15), the improvement resulted directly from efficiencies and 0.4% from exchange rates. As a result, the EPS grew 28% yoy to SEK1.29 versus SEK1.01, and the cash flow from operations increased by 15% to SEK4,527m (versus SEK3,953m).
Improvement in Mining coupled with resilient margins
19 Jul 16
Sandvik reported its Q2 16 figures. Main facts: > Order intake reached SEK19,869m, a 4% decline yoy at CER (-9% in reported figures), including -8% for Materials technology, -2% for Mining and stable demand for Machining Solutions. > Q2 16 revenue was SEK20,321m, also showing a 4% decline at CER, mainly resulting from a 6% decline in Materials Solutions amid the challenging market environment due to increased competition and price pressure, as companies active in the tubular area sought to replace lost volumes in the oil and gas industry with volumes in adjacent segments. > The adj. EBIT was SEK2,705m, corresponding to 13.3% margin, stable yoy (13.4% in Q2 15). > The operating cash flow was SEK2,050m, below last year (SEK2,766m) but at a satisfactory level.
Margins stand firm despite weak demand and FX
26 Apr 16
Main facts Q1 16: Orders were 7% lower yoy at SEK20,299m (vs SEK22,574m in Q1 15) with Machining Solutions at -6%, Mining at -8%, Materials Technology at -6%, Construction at -9% and Sandvik Venture at -13%. Q1 16 revenue also decreased 7% yoy led by Materials (-13% yoy), Mining (-10%) while Solutions posted an 8% decrease. However, the gross margin reached 38.6% this quarter vs 33.4% in Q1 15 and the adj. operating profit was SEK2,413m, a 19% yoy decline and corresponding to 12.2% versus 13.6% last year. The cash flow from operations reached SEK1,602m, -40% versus last year, leading to a net debt of SEK27.2bn (versus SEK30.4bn last year).
More pain ahead
03 Feb 16
Main facts of Q415 results: Order intake was SEK19.5bn below market expectations, revenue reached SEK20.9bn and adj. operating profit was at SEK2.3bn roughly in line with consensus. Sandvik reported that demand in China and in US is declining, and the energy market is still challenging with spillover effects in the engineering segment. SEK1.4b non-recurring cost booked mostly for Machining Solutions and Machining Technology: SEK250m for the supply chain optimization and SEK220m cost in SMS, and SEK1bn impairment mainly in the Chinese market. Cash flow was fairly strong in Q415 (+SEK3.4bn) driven by a decrease in working capital. Company targets to decrease its working capital, that has already started and seems efficient, and is also focusing on its Saving programme. During the conference call, the Q&A mainly focused on mining aftermarket momentum after weaker performance in Q415. Proposed dividend of SEK2.50 (vs. 3.50) below expectations (SEK3.0)
Weak demand translates progressively into margins
23 Oct 15
Sandvik reported Q315 results pointing to lower visibility and margin erosion. Due to the ongoing disposal process, the company has booked the mining systems activity as discontinued. Q315 order intake reached SEK 19726m, a -8% organic decrease with the decline across all geographies and divisions. By divisions, Machining Solutions orders decreased by 6% organically due to lower demand in the automotive segment in Asia, while low oil prices negatively impacted demand for Materials Technology (-12 %yoy). Mining sector demand decreased by 3% organically as equipment remained largely stable coupled with a slight softening in customer activity for consumables and rock tools in the aftermarket business. The construction segment decreased by 6% yoy while Sandvik Ventures orders decreased by 21%. Sales decreased by 6% yoy to SEK 20742m, while the operating margin reached 11.2%, 70 bp lower than last year (11.9%), led by Sandvik Materials (operating margin fall from 12.9% to 1.5%) due to manufacturing under-utilization and price pressure, while the operating margin improved in Mining (continued operations) from 12.5% to 14.8%. This led to a yoy decrease in EPS for Q315 at SEK 1.01 versus 1.19 last year. However, cash-flow generation was strong at SEK3953 (vs. 3538m in Q314) reflecting the focus on WC management.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management