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Assa Abloy AB (ASAZY)
:ASAZY
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Assa Abloy
(OTC:ASAZY)
Rating:79Outperform
Price Target:
$18.50
â–²(14.27%Upside)
Assa Abloy (ASAZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.88B
Dividend Yield1.02%
Average Volume (3M)2.97K
Price to Earnings (P/E)26.1
Beta (1Y)0.86
Revenue Growth6.17%
EPS Growth1.51%
CountryUS
Employees64,460
SectorIndustrials
Sector Strength90
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding2,110,100,000
10 Day Avg. Volume0
30 Day Avg. Volume2,974
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)3.36
Price to Sales (P/S)0.00
P/FCF Ratio18.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Assa Abloy Business Overview & Revenue Model
Company DescriptionASSA ABLOY AB (publ) provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania. The company offers mechanical and electromechanical locks, digital door locks, cylinders, door fittings, security doors, door frames, access control devices, and fire doors, as well as hardware products. It also provides identity solutions, including identity and access management, biometrics, authenticity and brand protection products, contactless RFID tags and transponders, and government IDs to companies, and government and state institutions, as well as healthcare, education, and financial industries; and secure access solutions for hotels, cruise ships, student accommodations, and elderly care facilities. In addition, the company offers entrance automation products, services, and components, such as automatic swing, sliding, and revolving doors; industrial doors; garage doors; high-performance doors; docking solutions; hangar doors; gate automation products; components for overhead sectional doors and sensors; and high security fencings and gates. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors, wholesalers, and home improvement stores. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.
How the Company Makes MoneyAssa Abloy makes money through the sale of its diverse range of security and access solutions. The company's revenue model primarily revolves around the direct sales of its hardware products, such as locks, doors, and access control systems, to various verticals including commercial, institutional, and residential markets. In addition to product sales, Assa Abloy generates revenue from services related to installation, maintenance, and support of its security systems. The company also benefits from strategic acquisitions and partnerships that enhance its product offerings and expand its market reach, contributing significantly to its earnings. Furthermore, Assa Abloy invests in research and development to innovate and tailor solutions that meet evolving market demands, thereby sustaining its revenue growth.
Assa Abloy Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 12.51%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced performance with strong top line growth and successful acquisition activities providing positive momentum, especially in Global Tech. However, challenges in Greater China, the North American residential market decline, and tariff impacts present significant headwinds.Q1-2025 Updates
Positive Updates
Strong Overall Top Line Growth
ASSA ABLOY reported an 8% increase in top line growth with 2% organic growth, 5% net acquisition growth, and 1% currency impact.
Positive Momentum in Global Tech
Global Tech segment saw an organic sales growth of 8% with strong sales growth across most verticals and an underlying strong operating margin.
Successful Acquisition Activity
Six acquisitions were completed in the quarter, adding an annualized sales of 3.6 billion SEK, including InVue and Uhlmann & Zacher.
Launch of Insight Mobile App
Entrance Systems launched the Insight Mobile App, enabling digital remote control and access management, enhancing product offerings.
Sweden and New Zealand Residential Market Recovery
Signs of recovery in the residential market in Sweden and New Zealand due to interest rate cuts.
Negative Updates
Challenges in Greater China
Significant sales decline with higher double-digit negative growth, impacting the Asia Pacific region by 6%.
North American Residential Market Decline
Mid-single digit negative growth in the North American residential market, affected by high interest rates and economic uncertainty.
Dilution Impact on Operating Margin
Operating margin affected by 140 basis points due to one-off acquisition and divestment-related costs.
Impact of Tariffs and Economic Uncertainty
Increased inventory levels due to tariff uncertainty, impacting cash flow and presenting ongoing challenges.
Company Guidance
In the recent call discussing ASSA ABLOY's Q1 report for fiscal year 2025, the company reported an 8% increase in sales with a 2% organic growth, 5% growth from acquisitions, and a 1% currency impact. The operating margin was noted at 14.9%, despite a 140 basis point dilution largely due to acquisition and divestment-related costs. The company achieved a cash flow of 2.4 billion SEK with a 51% cash conversion rate. A key highlight was the completion of six acquisitions, contributing to an annualized sales increase of 3.6 billion SEK. Challenges were noted in the residential sector across various regions, particularly due to high interest rates and economic uncertainties, whereas commercial sectors showed stronger performance, especially in North America and Europe. The launch of the MFP10 program was also highlighted, aiming to generate 1 billion SEK in savings by the end of 2027. Earnings per share increased by 3%, and net debt remained steady with a debt-to-EBITDA ratio of 2.4. Despite the challenges in the market, the company remains confident in navigating through local teams and anticipates positive outcomes from its decentralized organizational structure.Assa Abloy Financial Statement Overview
Summary
Assa Abloy exhibits a strong financial position characterized by consistent revenue growth, solid profitability, and sound cash flow management. The company enjoys a low leverage ratio and high equity ratio, though there is a slight decrease in return on equity and EBITDA margins that warrants attention.Income Statement
Assa Abloy has shown impressive revenue growth over the years, with a 10.87% increase from 2022 to 2023 and sustained growth in TTM 2025. Gross profit margin remains strong at 41.75% for TTM, indicating efficient cost management. The net profit margin of 9.57% for TTM suggests a healthy bottom line. However, there has been a slight decline in EBIT and EBITDA margins over the recent periods, which may warrant attention.88
Very Positive
Balance Sheet
The company maintains a robust equity position with an equity ratio of 54.38% in TTM, reflecting financial stability. The debt-to-equity ratio of 0.39 is low, indicating conservative leverage. However, the return on equity has slightly decreased to 19.89% in TTM from 21.42% in the previous year, suggesting a need for more efficient use of equity capital.82
Very Positive
Cash Flow
Assa Abloy demonstrates strong cash flow management with an operating cash flow to net income ratio of 1.31 in TTM, signifying effective conversion of profits into cash. The free cash flow to net income ratio is a solid 1.18, underscoring the company's capacity to generate cash after capital expenditures. Although there was a decline in free cash flow growth rate, the overall cash flow position remains robust.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 152.90B | 150.16B | 140.72B | 120.79B | 95.01B | 87.65B | Gross Profit |
| 63.84B | 62.73B | 56.50B | 47.93B | 37.78B | 34.31B | EBIT |
| 23.18B | 24.27B | 21.79B | 18.53B | 14.18B | 12.46B | EBITDA |
| 28.95B | 29.85B | 26.95B | 22.66B | 17.80B | 15.98B | Net Income Common Stockholders |
| 14.64B | 15.64B | 13.63B | 13.29B | 10.90B | 9.17B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.11B | 4.50B | 1.70B | 3.42B | 4.33B | 2.80B | Total Assets |
| 135.29B | 223.60B | 196.35B | 154.56B | 129.97B | 117.43B | Total Debt |
| 28.91B | 73.50B | 65.19B | 33.73B | 28.75B | 29.46B | Net Debt |
| 24.80B | 69.00B | 63.73B | 30.32B | 24.43B | 26.70B | Total Liabilities |
| 61.71B | 116.52B | 104.71B | 68.54B | 60.38B | 58.55B | Stockholders Equity |
| 73.57B | 107.07B | 91.63B | 86.01B | 69.58B | 58.87B |
| Cash Flow | Free Cash Flow | ||||
| 17.24B | 19.33B | 18.66B | 12.36B | 10.74B | 11.85B | Operating Cash Flow |
| 19.21B | 21.39B | 21.29B | 14.36B | 12.46B | 13.66B | Investing Cash Flow |
| -11.69B | -13.93B | -47.90B | -10.56B | -3.09B | -6.74B | Financing Cash Flow |
| -5.68B | -4.45B | 24.73B | -4.70B | -7.81B | -4.56B |
Assa Abloy Technical Analysis
Positive
16.19
Price Trends
15.15
Positive
15.23
Positive
15.36
Positive
Market Momentum
0.21
Positive
59.84
Neutral
74.59
Neutral
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 16.19 is above the 20-day moving average (MA) of 15.95, above the 50-day MA of 15.15, and above the 200-day MA of 15.36, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 74.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAZY.
Assa Abloy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $35.88B | 26.15 | 14.16% | 1.02% | 6.17% | 1.51% | |
79 Outperform | $6.49B | 22.79 | 26.22% | 1.25% | 0.75% | 7.20% | |
78 Outperform | $12.02B | 19.61 | 42.05% | 1.40% | 5.48% | 16.27% | |
76 Outperform | $3.31B | 17.31 | 17.80% | 1.36% | 8.62% | 3.59% | |
72 Outperform | $6.98B | 14.27 | 16.26% | 2.67% | -5.44% | -16.05% | |
68 Neutral | $3.59B | 22.91 | 54.50% | 1.17% | 1.97% | 41.88% | |
66 Neutral | $4.49B | 12.34 | 5.40% | 248.65% | 4.13% | -12.33% |
* Industrials Sector Average
Performance Comparison
ASAZY
Assa Abloy
16.19
1.61
11.04%
BRC
Brady
69.93
4.81
7.39%
BCO
Brink's Company
85.40
-15.06
-14.99%
MSA
MSA Safety
166.42
-4.18
-2.45%
ALLE
Allegion
139.67
24.10
20.85%
ADT
Adt
8.34
1.18
16.48%
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.