Epiroc
Note: This is a daily stock update and the information stands true as of 30/01/26, 09:00 CET.
Company Update:
Expert Opinion:
The capex cycle for mining is on the rise. We suggest to go through the initiation report (Please contact sales@alphavalue for more information). At first glance, valuation looks a bit high (PE26 at 28.5x and PE27 at 24.2x) which is natural considering the margins generated on the service side but the company's fundamentals really look solid (fundamental strength at 9/10).
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Company Update:
We initiate coverage of the stock with an ‘Add’ recommendation, driven by an approximate 25% upside potential. The company is undervalued compared to larger peers, trading at a 15% discount. The group has demonstrated a strong ability to carry on with its organic growth strategy, particularly in the field of services, combined with bolt-on acquisitions to expand its portfolio of activities both in terms of scope and geography.
While competition is fierce on the sale of equipment, once a contract is won, services enables to generate fat margins and the ROCE of the company is very strong.
Expert Opinion:
The capex cycle for mining is on the rise. We suggest to go through the initiation report (Please contact sales@alphavalue for more information). At first glance, valuation looks a bit high (PE26 at 28.5x and PE27 at 24.2x) which is natural considering the margins generated on the service side but the company's fundamentals really look solid (fundamental strength at 9/10).
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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