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Assa Abloy AB (ASAZY)
OTHER OTC:ASAZY
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Assa Abloy
(OTC:ASAZY)
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Rating:69Neutral
Price Target:
$20.50
▲(9.28% Upside)
Assa Abloy's overall stock score is driven primarily by its strong financial performance and positive technical indicators. The company's profitability and operational efficiency are strong, but recent declines in revenue and free cash flow growth are concerns. The stock's technical indicators suggest a positive trend, but the high P/E ratio indicates a relatively expensive valuation.
Positive Factors
Business Model Strength
Assa Abloy's diversified revenue streams from mechanical and electronic locks, access control, and service contracts provide resilience and adaptability to market changes.
Market Position
As a global leader in access solutions, Assa Abloy benefits from strong brand recognition and a competitive edge in the security and protection services industry.
Profitability and Operational Efficiency
Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitiveness.
Negative Factors
Revenue Decline
A substantial revenue decline poses risks to growth and market share, potentially impacting future profitability and strategic initiatives.
Free Cash Flow Decline
Declining free cash flow growth could affect liquidity and the ability to invest in growth opportunities, impacting long-term financial health.
Leverage Concerns
While leverage is currently manageable, any increase in debt levels could strain financial flexibility and risk management capabilities.
Assa Abloy (ASAZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.49B
Dividend Yield1.27%
Average Volume (3M)7.08K
Price to Earnings (P/E)30.5
Beta (1Y)0.74
Revenue Growth8.40%
EPS Growth0.21%
CountryUS
Employees64,460
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding2,110,100,000
10 Day Avg. Volume0
30 Day Avg. Volume7,078
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)3.36
Price to Sales (P/S)2.40
P/FCF Ratio18.63
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda1.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Assa Abloy Business Overview & Revenue Model
Company DescriptionAssa Abloy (ASAZY) is a global leader in access solutions, specializing in the development and manufacture of locks, doors, and entrance automation systems. The company operates across various sectors including residential, commercial, institutional, and industrial markets. Its core products encompass mechanical and electronic locks, access control systems, door operators, and identity management solutions, catering to the evolving needs of security and convenience in both physical and digital spaces.
How the Company Makes MoneyAssa Abloy generates revenue through multiple key streams, primarily from the sale of its extensive range of locking and access control products. The company benefits from a diversified portfolio, which includes both traditional mechanical locks and advanced electronic solutions. Major revenue sources include direct sales to end-users, distribution through third-party suppliers, and partnerships with construction and security firms. Additionally, recurring revenues are generated from service contracts, maintenance of electronic security systems, and software solutions for access management. Strategic acquisitions of complementary businesses also enhance its market position and contribute to revenue growth.
Assa Abloy Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong organic growth, robust cash flow, and successful acquisitions contributing to performance. However, the company faces challenges from currency headwinds, sales declines in specific regions, and ongoing difficulties in residential markets.Q2-2025 Updates
Positive Updates
Strong Organic Growth
Reported a good organic growth of 3%, with a 2% price increase and 1% volume increase in Q2 2025.
EBITA Margin Performance
Achieved an EBITA margin of 17.2%, even surpassing the targeted bandwidth of 16% to 17%.
Cash Flow and Conversion
Strong cash flow of SEK 5.5 billion with a cash conversion rate of 103%.
Growth Through Acquisitions
Completed 5 acquisitions in the quarter, contributing to a 5% growth through acquisitions.
Global Technologies Division Success
Reported an 8% organic sales growth in the Global Technologies division, with a strong operating margin of 18.5%.
Positive Trends in Americas
Americas division saw a 4% organic sales growth, with strong performance in the non-residential segment.
Operational Execution
Achieved a volume leverage of 53% on the 3% organic growth.
Negative Updates
Currency Headwinds
Experienced a strong currency headwind of -8% impacting sales.
Sales Declines in EMEIA and Asia Pacific
Reported sales declines in EMEIA and Asia Pacific, with a significant decline in Greater China.
Challenges in Residential Markets
Continued challenges in the residential market, particularly in North America due to high interest rates and in Europe despite interest rate cuts.
Middle East Sales Decline
Sales decline in the Middle East, India, and Africa regions, mainly due to the Middle East.
Industrial Segment Struggles
Experienced a sales decline in the Industrial segment of Entrance Systems.
Company Guidance
In the Q2 2025 earnings call, ASSA ABLOY reported a strong performance with a 3% organic growth, driven by a 2% price increase and a 1% volume increase. The company saw a 5% net growth through acquisitions, despite facing an 8% currency headwind. The EBITA margin was 17.2% and EBIT margin 16.2%, surpassing their usual target range. The balance sheet showed strength with a cash flow of SEK 5.5 billion and a cash conversion rate of 103%. Regional performance varied, with strong growth in Americas and Global Tech, modest growth in Entrance Systems, and declines in EMEIA and Asia Pacific. The company completed five acquisitions in the quarter, contributing SEK 4.4 billion in annualized sales, and divested its Citizen ID business. Despite uncertain market conditions, ASSA ABLOY remains optimistic, leveraging its decentralized organizational model to navigate challenges effectively.Assa Abloy Financial Statement Overview
Summary
Assa Abloy demonstrates strong profitability and operational efficiency, with healthy EBIT and EBITDA margins. However, the significant revenue decline of 21.84% and a 24.65% drop in free cash flow growth in the TTM are concerning. The balance sheet is stable with moderate leverage, and cash flow metrics indicate good cash generation despite recent declines.Income Statement
Assa Abloy shows strong profitability with a consistent gross profit margin around 42% and a net profit margin close to 10% over the TTM. However, the company experienced a significant revenue decline of 21.84% in the TTM, which is a concern. EBIT and EBITDA margins remain healthy, indicating operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio is moderate at 0.68, suggesting manageable leverage. Return on equity is solid at 14.31%, reflecting effective use of equity to generate profits. The equity ratio is stable, indicating a balanced capital structure.68
Positive
Cash Flow
Operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, free cash flow growth has declined by 24.65% in the TTM, which could impact future liquidity. The free cash flow to net income ratio remains robust, showing efficient cash conversion.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 153.12B | 150.16B | 140.72B | 120.79B | 95.01B | 87.65B |
| Gross Profit | 64.76B | 62.73B | 56.50B | 47.93B | 37.78B | 34.31B |
| EBITDA | 29.26B | 29.85B | 26.95B | 22.66B | 18.02B | 15.98B |
| Net Income | 14.62B | 15.64B | 13.63B | 13.29B | 10.90B | 9.17B |
Balance Sheet | ||||||
| Total Assets | 215.43B | 223.60B | 196.35B | 154.56B | 129.97B | 117.43B |
| Cash, Cash Equivalents and Short-Term Investments | 3.31B | 4.53B | 1.70B | 3.42B | 4.33B | 2.80B |
| Total Debt | 69.33B | 73.50B | 65.19B | 33.73B | 28.75B | 29.46B |
| Total Liabilities | 112.73B | 116.52B | 104.71B | 68.54B | 60.38B | 58.55B |
| Stockholders Equity | 102.58B | 107.07B | 91.63B | 86.01B | 69.58B | 58.87B |
Cash Flow | ||||||
| Free Cash Flow | 19.13B | 19.33B | 18.66B | 12.36B | 10.74B | 11.85B |
| Operating Cash Flow | 21.35B | 21.39B | 21.29B | 14.36B | 12.46B | 13.66B |
| Investing Cash Flow | -14.21B | -13.93B | -47.90B | -10.56B | -3.09B | -6.74B |
| Financing Cash Flow | -7.93B | -4.45B | 24.73B | -4.70B | -7.81B | -4.56B |
Assa Abloy Technical Analysis
Positive
18.76
Price Trends
19.07
Positive
18.50
Positive
17.11
Positive
Market Momentum
0.25
Negative
66.90
Neutral
82.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAZY, the sentiment is Positive. The current price of 18.76 is below the 20-day moving average (MA) of 19.51, below the 50-day MA of 19.07, and above the 200-day MA of 17.11, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 82.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAZY.
Assa Abloy Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.41B | 32.18 | 25.03% | 1.29% | -2.28% | -9.94% | |
75 Outperform | $7.17B | 25.79 | 23.35% | 1.30% | 3.31% | 2.58% | |
72 Outperform | $14.07B | 22.13 | 36.41% | 1.27% | 6.87% | 13.53% | |
69 Neutral | $44.49B | 30.53 | 13.95% | 1.27% | 8.40% | 0.21% | |
69 Neutral | $6.79B | 11.82 | 17.24% | 2.73% | 4.77% | -22.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $5.69B | ― | -20.90% | ― | 15.45% | -488.24% |
* Industrials Sector Average
ASAZY
Assa Abloy
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.