Sandvik (OM:SAND) Could Be 12% Undervalued Following Strong Q2 Results
Sandvik (OM:SAND) is in focus after reporting second quarter 2026 results, with sales of SEK 36,752 million and net income of SEK 5,236 million, alongside higher basic earnings per share year on year.
See our latest analysis for Sandvik.
Despite the strong second quarter figures, Sandvik’s share price of SEK346.9 is down 14.7% on a 30 day basis and 11.6% over 90 days, while its 1 year total shareholder return of 48.9% points to stronger longer term momentum.
If Sandvik’s latest move has you thinking about where capital goods and automation trends might lead next, it could be worth scanning 32 robotics and automation stocks
Sandvik’s earnings are moving in one direction while the share price has recently moved in the other. This puts the spotlight on valuation: is most of the rerating already behind the stock, or is there still upside left to justify?
Most Popular Narrative: 12% Undervalued
On the latest narrative, Sandvik’s fair value of SEK394.15 sits above the current SEK346.9 share price, which puts the recent pullback in a different light.
Sandvik is benefiting from strong market momentum in its Mining segment, particularly in regions like Australia and South America, which could drive future revenue growth. The company's launch of electrification and automation-ready products in mining and new product introductions in software are likely to enhance market position and boost future revenue.
Want to see what kind of revenue curve and margin profile analysts are baking in to reach that fair value, and which earnings step change underpins it? The full narrative lays out the projected growth glide path and the valuation multiple that needs to hold for Sandvik to match that target.
Result: Fair Value of SEK394.15 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, if economic weakness persists in cutting tools and infrastructure, or if regional softness in Europe widens, Sandvik’s revenue mix and margin profile could look very different.
Find out about the key risks to this Sandvik narrative.
Next Steps
With Sandvik’s mixed signals on price and fair value, it makes sense to move quickly and test the thesis against the data yourself. To see what the market is optimistic about and which potential rewards matter most to you, review the 3 key rewards.
Looking for more ideas beyond Sandvik?
Do not stop with Sandvik. The market is full of other angles to test your thesis, and skipping them could mean missing opportunities that fit your style even better.
- Target potential mispricings by scanning 235 high quality undervalued stocks that align with solid fundamentals and your preferred risk profile.
- Build a steadier income stream by reviewing 458 dividend fortresses that combine higher yields with balance sheet support.
- Prioritise resilience by checking 294 resilient stocks with low risk scores that score well on financial strength and volatility measures.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com