Darren SissonsAtlas Copco ABATCO.A-STBUYJan 12, 2026
Vacuum technology is its core expertise.. It is tied to the semi-conductor sector since production needs clean space. It is the best of breed in its category and probably the best capital goods company in Europe. It is under-priced and somewhat under-covered. He has done well with Swedish companies - management companies tend to be shareholder friendly.
Global leader in vacuum technology. Dividend increases annualized over 5 years of 10%, 10 years of 6% -- quite solid. Asset light, so fairly high return metrics. Weak last year on exposure to semiconductor market.
As a rule, buy it on its native exchange, because the bid-ask spread is tighter due to higher trading volume. An ADR offers less liquidity. Green energy's popularity is a driver for ATCO. He invests in Sweden, but feels neutral about ATCO.
3-5 year hold. He's taking advantage of currency dislocations and valuations in Europe. Asset light. Industrial applications. History shows that if you don't buy on sale, it's a mistake. Tuck-in acquisitions. Very well run. Growing dividend, attractive valuation. Retraced, and could retrace further. Yield is 2.08%.
Looking to capture 10% currency differential and 30% decrease in share price.
Lots of profitable M&A.
Return in equity around 30% with global operations.
Current share price presenting good buying opportunity.
Vacuum technology is its core expertise.. It is tied to the semi-conductor sector since production needs clean space. It is the best of breed in its category and probably the best capital goods company in Europe. It is under-priced and somewhat under-covered. He has done well with Swedish companies - management companies tend to be shareholder friendly.