The underlying tendency is to the upside for shares in Alfa Laval AB and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
Weaknesses
● The firm trades with high earnings multiples: 22.95 times its 2024 earnings per share.
● The company appears highly valued given the size of its balance sheet.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
Alfa Laval AB specializes in the design, manufacturing and marketing of equipment and industrial systems for heating, cooling, separating and transporting of substances (oil, water, chemical and food substances, drinks, drugs, etc.). The activity is organized mainly arounf two families of products:
- solid and liquid treatment systems: systems for cooling, evaporation, extraction, drying, etc. intended primarily for the food processing, pharmaceutical, petrochemical, and energy sectors;
- production process equipment: decanters, heat exchangers, pumps, valves, air and liquid filtration systems, etc.
Net sales are distributed geographically as follows: Sweden (2.2%), Europe (32.5%), China (14.1%), South Korea (5.5%), Asia (18.2%), United States (16.7% ), North America (2.1%), Latin America (5.6%), Africa (1.9%) and Oceania (1.2%).