What moat does Epiroc AB have?

The advantage is the machine already inside the mine and the technician who comes back to maintain it. The miner can buy the next machine from Sandvik. The moat narrows if the mining investment cycle stops, or if a third party does the service.

How do you read the Epiroc AB radar?

Health is debt against an equipment and parts business, not against the mine. Quality separates the margin on new equipment from the margin on service. Growth follows miner spending, not a concession. P/E is read against a year of heavy orders, not against that peak. Shareholder return is the dividend, checked against cash.

Which multiples matter for Epiroc AB?

The P/E of a year of many new mines is not normal earnings. EV/EBITDA is read without treating service as two thirds of the group by decree. Do not use Atlas Copco's multiple, which sells the compressor. A dash if the EPI-A.ST cache is cold.

What does this Epiroc AB analysis leave out?

Not advice on Epiroc. Vaultflake does not split equipment and service and does not treat the machine as captive. This is not a daily cost of downtime. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

Epiroc AB (EPI-A.ST) analysis

Epiroc AB

Sector:Industrials · Underground Mining Equipment

Country:Sweden

Profile and moat

Epiroc sells equipment for rock excavation and underground mining, and the parts and service on the machine already installed. It was spun out of Atlas Copco. Atlas is the compressor and the vacuum: that is not this business. Sandvik competes for the same equipment. It is not the leader by decree.

Service lasts while the machine stays in the mine. New equipment follows miner spending, which is cyclical. A year of many new mines is not normal earnings. Electrification and remote operation are product lines. This report does not say they are the larger part and does not state a service share.

The dividend comes from the cash of the equipment and the parts. It has to fit. It is not a toll on the mine.

Sustainable Competitive Advantage

Epiroc AB (EPI-A.ST) analysis

Epiroc AB

Sector:Industrials · Underground Mining Equipment

Country:Sweden

Profile and moat

The dividend comes from the cash of the equipment and the parts. It has to fit. It is not a toll on the mine.

Sustainable Competitive Advantage

Epiroc AB (EPI-A.ST) analysis

Profile and moat

Epiroc AB (EPI-A.ST) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does Epiroc AB have?

How do you read the Epiroc AB radar?

Which multiples matter for Epiroc AB?

What does this Epiroc AB analysis leave out?

Related reports in Industrials · Underground Mining Equipment

Siemens AG

Space Exploration Technologies Corp.

Caterpillar Inc.

Deere & Company

Honeywell International Inc.

GE Aerospace