Epiroc AB Ordinary Shares - Class A
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|k? | LOCK|m@K | LOCK|#F<$$vC |
Epiroc Earnings: 8% Order Growth Boosted by Secular Growth Themes in the Mining Sector
Narrow-moat Epiroc’s impressive third-quarter results reflect healthy demand for new mining equipment, underpinned by the industry trend toward improving productivity through autonomous equipment. Organic order intake grew 6% year over year, which included SEK 1.4 billion of large equipment orders and is comfortably ahead of its closest peer Sandvik. We believe Epiroc's 8% order growth will set it up nicely to deliver mid-single-digit revenue growth in fiscal 2025 and provides a long runway to deliver aftermarket services. The market appears to be pricing in Epiroc’s robust outlook with shares trading at a 15% premium to our SEK 180 fair value estimate, which we maintain.
