Alfa Laval AB (publ)

ALFVY

Industrial - Machinery · Industrials

Price

$57.97

-0.47 (-0.80%)

Market Cap

$23.96B

Exchange

Other OTC

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−1.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 418.0M (2021) → 413.3M (2025)

Alfa Laval is a Swedish industrial company that makes equipment used to transfer heat, separate liquids, and move fluids through pipes. Its core products include heat exchangers, separators, and pumps, which are sold to industries like food and beverage, pharmaceuticals, shipping, and energy. The company is one of the largest makers of heat transfer equipment in the world and has been in business for over 140 years.

Alfa Laval earns money by selling equipment directly to industrial customers and also through aftermarket services like spare parts and maintenance contracts, which provide a steadier stream of recurring revenue. It operates globally, with strong presence in Europe, Asia, and the Americas, generating roughly $6 billion in annual revenue. Its deep engineering expertise and large installed base of equipment create switching costs that are hard for competitors to overcome. The main growth driver is rising demand for energy-efficient equipment, though a slowdown in global industrial spending or shipping activity could weigh on orders.

Winston Score History

Score breakdown

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Quality

Gross Margin

38.8%

Modest — 38.8% gross margin

Operating Margin

17.1%

Healthy — 17.1% operating margin

ROCE

4.4%

Weak — 4.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-0.0%

Shrinking sales (-0.0% YoY)

EPS YoY

+5.3%

Modest earnings growth (5.3% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

107%

Turns 107% of profit into real cash

FCF Margin

8.9%

Modest free cash flow (8.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.32

Conservative — low debt load (0.32)

Interest Cover

25.73x

Comfortably covers interest (25.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

3.0x

Attractive valuation — P/E 3.0

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+0.8

GROWING

Earnings roughly flat

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Dividends

Dividend Yield

1.61%

Small dividend — 1.61% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+29.9%

Dividend growing fast (29.9% YoY)

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