Epiroc EPI-A.ST
Epiroc is a Swedish supplier of drilling, excavation, and service equipment for mining and construction, with a business model based on machinery sales and a growing stream of recurring revenue from services and automation. Epiroc shows solid financial health (ND/EBITDA of 0.81) and high quality (ROE 21.23%), but its valuation is demanding (P/E 35.12) and its growth, although good, is cyclical. Recent news of orders and the alliance with Ericsson strengthen its position, but do not compensate for the elevated multiple.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Epiroc is a Swedish supplier of drilling, excavation, and service equipment for mining and construction, with a business model based on machinery sales and a growing stream of recurring revenue from services and automation. Epiroc shows solid financial health (ND/EBITDA of 0.81) and high quality (ROE 21.23%), but its valuation is demanding (P/E 35.12) and its growth, although good, is cyclical. Recent news of orders and the alliance with Ericsson strengthen its position, but do not compensate for the elevated multiple.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.8 |
| Quality / Moat | 6.8 |
| Valuation | 2.9 |
| Growth | 6.4 |
| Dividend | 6.0 |
| Momentum | 6.5 |
| Risk & Context | 4.9 |
OVERALL SCORE: 5.7/10
Context and risks
Epiroc has exposure to mining, a cyclical sector. The context of rising interest rates (10-year Treasury at 5.17%) and the slowdown in technology/semiconductors do not directly affect it. However, its business depends on mining investment, which could be affected by global macro uncertainty, although there is no specific regulatory or geopolitical risk for the company.
News considered in the analysis
- Epiroc secures underground equipment order from MMG — Nuevo pedido de equipos subterráneos que refuerza la cartera de pedidos, aunque su impacto en beneficios es moderado.
- Epiroc AB (EPIAF) Q2 2026 Earnings Call Highlights: Strong Organic Growth and Strategic Advancements — Resultados del segundo trimestre con crecimiento orgánico sólido, ya comunicados y parcialmente reflejados en el precio.
- Epiroc and Ericsson team up to boost 5G connectivity in mining — Colaboración estratégica para mejorar la conectividad 5G en minería, refuerza la oferta de automatización y servicios, un diferenciador clave.
- Epiroc secures mining equipment contract from Mopani — Nuevo contrato de equipos mineros que añade visibilidad a ingresos futuros, aunque de magnitud moderada.
- Is It Too Late To Consider Epiroc (OM:EPI A) After A 35% One-Year Rally? — Artículo de opinión sobre la revalorización de la acción, sin información nueva relevante.
Verdict: Hold. The quality of the business is high, but the current valuation does not offer a sufficient margin of safety.
Main risk: The main risk is the cyclical nature of mining and construction, which could lead to a slowdown in demand for equipment and services, affecting future growth and profitability.
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