Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Atlas Copco Is Great Everywhere But In Value

Sweden's Atlas Copco (OTCPK:ATLKY) has long been one of my favorite industrial companies, and it remains so today. The shares have done so-so since I last wrote about them for Seeking Alpha; hit by the severe downturn in mining, the shares are up about 20% over that stretch - roughly on par with Caterpillar (NYSE:CAT) and better than Sandvik (OTCPK:SDVKY), but only about half the returns of Ingersoll-Rand (NYSE:IR) or the S&P 500.

Even with that underperformance, and even though I like the company, I'm not as bullish on the shares as I wish I could be. Mining likely is troughing, but even an estimate for 10% future annual free cash flow...

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