![This is Matt Reustle and today we are breaking down the Swedish industrial giant, Atlas Copco. With a market cap hovering around $50 billion US dollars, Atlas Copco is a dominant player in the air compressor and vacuum pump markets. It has returned 40x over the past 20 years for its shareholders. We cover the rich corporate history of Atlas Copco, what makes its culture so noteworthy, and provide an overview of its products that are used in industries all around the world. <br /><br />Our guest is Stephen Paice, Head of European equities at Baillie Gifford. Baillie Gifford has owned this business for 4 decades and Stephen still has the handwritten research notes from the mid-80s!<br /> <br />For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/53701029/paice-atlas-copco-swedens-best-kept-secret<br /> <br /> -----<br /> <br /> This episode is presented by Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 public traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Listeners are invited to try Visible Alpha for free by visiting visiblealpha.com/breakdowns.<br /> <br /> —--<br /> <br /> Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt<br /> <br /> Show Notes<br /> [00:00:00] - Introduction<br /> [00:02:12] - [First question] - What makes Atlas Copco such an interesting business <br /> [00:03:52] - What they’re selling and who they’re typically selling to <br /> [00:06:02] - Whether or not there are alternatives to air compressors<br /> [00:07:03] - What a vacuum pump is and how their industrial vacuum business works<br /> [00:08:55] - Metrics used to measure how Atlas Copco is a market leader <br /> [00:10:25] - Some of the key milestones of their corporate history leading up to today<br /> [00:17:51] - How much the Wallenberg family owns of Atlas Copco today<br /> [00:18:48] - Walking through the income statement<br /> [00:21:47] - Service regularity and overview of revenue generated through service <br /> [00:25:35] - Cost profile of the business and how their supply chain works<br /> [00:30:19] - Anything unique that contributes to their 6-7% revenue growth<br /> [00:31:55] - What the consolidated business margin works out to<br /> [00:33:23] - TransDigm; Being able to allocate 30-40% of free cash flow towards acquisitions in a fragmented market<br /> [00:35:16] - What the bull case for Atlas Copco is<br /> [00:39:46] - A metric he typically uses when thinking about these types of businesses <br /> [00:40:47] - The most interesting and surprising takeaways from Atlas Copco<br /><br />#businessbreakdowns #atlascopco #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Matt Reustle and today we are breaking down the Swedish industrial giant, Atlas Copco. With a market cap hovering around $50 billion US dollars, Atlas Copco is a dominant player in the air compressor and vacuum pump markets. It has returned 40x over the past 20 years for its shareholders. We cover the rich corporate history of Atlas Copco, what makes its culture so noteworthy, and provide an overview of its products that are used in industries all around the world.
Our guest is Stephen Paice, Head of European equities at Baillie Gifford. Baillie Gifford has owned this business for 4 decades and Stephen still has the handwritten research notes from the mid-80s!
Show Notes
[00:00:00] – Introduction
[00:02:12] – [First question] – What makes Atlas Copco such an interesting business
[00:03:52] – What they’re selling and who they’re typically selling to
[00:06:02] – Whether or not there are alternatives to air compressors
[00:07:03] – What a vacuum pump is and how their industrial vacuum business works
[00:08:55] – Metrics used to measure how Atlas Copco is a market leader
[00:10:25] – Some of the key milestones of their corporate history leading up to today
[00:17:51] – How much the Wallenberg family owns of Atlas Copco today
[00:18:48] – Walking through the income statement
[00:21:47] – Service regularity and overview of revenue generated through service
[00:25:35] – Cost profile of the business and how their supply chain works
[00:30:19] – Anything unique that contributes to their 6-7% revenue growth
[00:31:55] – What the consolidated business margin works out to
[00:33:23] – TransDigm; Being able to allocate 30-40% of free cash flow towards acquisitions in a fragmented market
[00:35:16] – What the bull case for Atlas Copco is
[00:39:46] – A metric he typically uses when thinking about these types of businesses
[00:40:47] – The most interesting and surprising takeaways from Atlas Copco