Sandvik AB
SAND: XSTO (SWE)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
SEK 348.00 | Qmtyb | Wmzlvwqqc |
Strong Mining Order Backlog Will Support Sandvik’s Growth in 2022; We Maintain Our FVE
Business Strategy and Outlook
The short-cycle nature of demand for Sandvik’s metal-cutting tools and mining equipment exposes the group to cyclical swings in industrial manufacturing and commodity prices. A combination of divestments and restructuring has successfully created a more resilient and profitable business. The distribution of the materials technology segment to shareholders in the second half of 2022 will further reduce cyclicality due to the segment’s large concentration to energy-producing customers.