Sandvik AB

SAND: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 493.00	Lzgxzq	Fnjrfllm

Strong Start to the Year for Sandvik; Shares Are Fairly Valued

Matthew Donen

Apr 20, 2022

We expect to moderately raise our SEK 193 fair value estimate for narrow-moat Sandvik following a strong start to the year. There were a number of moving parts behind first-quarter revenue growth of 35% and operating profit growth of 23%, due to the proposed distribution and listing of the materials technology segment and a significant contribution from 14 prior-year acquisitions. Nevertheless, the core operations of the group remain robust, delivering organic order intake and organic revenue growth of 13% and 9%, respectively. We view shares as fairly valued.

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