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Assa Abloy (ASAZY)
OTHER OTC:ASAZY
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Assa Abloy (ASAZY) AI Stock Analysis

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ASAZY

Assa Abloy

(OTC:ASAZY)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
$20.00
▲(11.61% Upside)
Action:Upgraded
Date:07/18/26
The score is driven primarily by strong underlying financial performance (durable growth, solid profitability, and strong free cash flow) and a constructive earnings update with margin and cash strength despite regional/FX headwinds. Offsetting factors are a mixed technical trend (still below longer-term averages with negative MACD) and a valuation that appears fair-to-rich with only a modest dividend yield.
Positive Factors
Consistent revenue & organic growth
Assa Abloy shows durable top-line momentum driven by both volume and pricing: multi-year revenue expansion and Q2 organic growth indicate underlying demand across core segments. A steady organic base reduces reliance on M&A for growth and supports predictable revenue over 2–6 months.
Negative Factors
Higher absolute debt load vs earlier years
Elevated absolute debt increases interest-rate and refinancing sensitivity, especially if management continues acquisitive growth. Even with moderate leverage metrics, higher gross debt raises the stakes for cash generation and margin resilience if macro rates or cost pressures rise over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue & organic growth
Assa Abloy shows durable top-line momentum driven by both volume and pricing: multi-year revenue expansion and Q2 organic growth indicate underlying demand across core segments. A steady organic base reduces reliance on M&A for growth and supports predictable revenue over 2–6 months.
Read all positive factors

Assa Abloy (ASAZY) vs. SPDR S&P 500 ETF (SPY)

Assa Abloy Business Overview & Revenue Model

Company Description
ASSA ABLOY AB (publ), a company founded in 1954 and headquartered in Stockholm, Sweden, operates as a leading global provider of door opening products, integrated solutions, and related services. Its extensive market reach spans institutional, com...
How the Company Makes Money
ASSA ABLOY primarily makes money by selling access-related products, solutions, and associated services across several major categories. (1) Product sales: A large share of revenue comes from manufacturing and selling core door-opening and locking...

Assa Abloy Earnings Call Summary

Earnings Call Date:Jul 17, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance: accelerated organic growth (4%), strong margin expansion (EBIT margin 17%, EBITDA 18.1%), record EPS (+12%), robust cash conversion (106%), and continued progress on strategic priorities (electromechanical transition, recurring revenue, innovation and active M&A). Key negatives were concentrated regional and vertical challenges — notably a significant slowdown in Greater China, a sharp South Korea residential deterioration, logistics/industrial weakness, currency headwinds, and some one-off items that boosted reported margins. Overall these headwinds appear manageable relative to the company’s broad profitability, cash generation and growth drivers.
Positive Updates
Accelerated Organic Sales Growth
Group organic sales growth of 4% in Q2; net growth from acquisitions +2%; reported sales ~SEK 39.5 billion, +3% YoY. Organic growth split roughly 2% price / 2% volume.
Negative Updates
Greater China and APAC Weakness
Opening Solutions APAC organic decline of -4%, driven by a significant double-digit decline in Greater China; overall Asia sales -2%. Management has paused acquisitions in Greater China until stabilization.
Read all updates
Q2-2026 Updates
Negative
Accelerated Organic Sales Growth
Group organic sales growth of 4% in Q2; net growth from acquisitions +2%; reported sales ~SEK 39.5 billion, +3% YoY. Organic growth split roughly 2% price / 2% volume.
Read all positive updates
Company Guidance
Guidance from the call: management expects Q3 sales to be roughly flat (with a slight negative dilutive impact on margins), FX headwinds to be neutral in Q3 after a -3% FX drag in Q2, and full‑year pricing of about 2% (previously guided ~1.5%), with the company confident price‑vs‑cost will remain positive into Q3. For context they reported Q2 sales ~SEK 39.5bn (+3% year‑on‑year) with organic growth +4%, M&A net +2% and currency -3%; EBIT SEK ~6.7bn (+9%) and an EBIT margin of 17% (adjusted 16.5%), EBITDA margin 18.1% (+90bps), EPS SEK 3.98 (+12%), record operational leverage/organic flow‑through ~51% (organic flow‑through 51%, excluding one‑offs ~38%), cash conversion 106% and operating cash flow SEK 6.3bn, and said they will avoid acquisitions in Greater China until the market stabilizes.

Assa Abloy Financial Statement Overview

Summary
Strong overall financial profile with meaningful multi-year revenue growth, steady-to-improving profitability, and consistently solid free cash flow. Main risks are the higher absolute debt load versus earlier years and only modest cash conversion/working-capital efficiency noted in recent periods.
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue150.90B152.41B150.16B140.72B120.79B95.01B
Gross Profit65.35B64.97B62.73B56.50B47.93B37.78B
EBITDA30.94B29.43B29.85B26.95B22.66B18.02B
Net Income16.39B14.70B15.64B13.63B13.29B10.90B
Balance Sheet
Total Assets228.11B208.38B223.60B196.36B154.43B129.97B
Cash, Cash Equivalents and Short-Term Investments3.87B1.40B4.53B1.70B3.42B4.33B
Total Debt71.39B65.35B73.50B65.19B33.90B28.75B
Total Liabilities116.75B106.65B116.52B104.71B68.54B60.39B
Stockholders Equity111.19B101.60B107.07B91.63B86.01B69.58B
Cash Flow
Free Cash Flow21.28B18.64B19.33B18.66B12.36B10.74B
Operating Cash Flow23.83B21.41B21.39B21.29B14.36B12.46B
Investing Cash Flow-9.84B-13.16B-13.93B-47.90B-10.56B-3.09B
Financing Cash Flow-12.28B-11.18B-4.45B24.73B-4.70B-7.81B

Assa Abloy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.92
Price Trends
50DMA
17.81
Positive
100DMA
18.25
Positive
200DMA
18.89
Positive
Market Momentum
MACD
0.44
Negative
RSI
66.22
Neutral
STOCH
95.19
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 17.92 is below the 20-day moving average (MA) of 18.21, above the 50-day MA of 17.81, and below the 200-day MA of 18.89, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 95.19 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$14.37B21.6131.99%1.38%10.63%5.92%
75
Outperform
$5.58B9.7516.83%3.13%2.10%6.68%
72
Outperform
$42.90B24.6215.46%1.82%9.73%24.72%
72
Outperform
$7.49B23.9623.15%1.22%6.48%14.55%
70
Outperform
$1.48B38.8420.86%1.62%8.83%-16.34%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
$3.95B-6.76-17.64%8.08%-1039.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASAZY
Assa Abloy
19.15
2.41
14.41%
MSA
MSA Safety
193.13
25.75
15.38%
NSSC
Napco Security Technologies
40.01
10.71
36.56%
ALLE
Allegion
165.53
3.36
2.07%
ADT
Adt
7.51
-0.61
-7.55%
REZI
Resideo Technologies
24.21
5.10
26.71%
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.Date of analysis: Jul 18, 2026