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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)

Rating:77Outperform
Price Target:
$20.00
▲(12.93% Upside)
Assa Abloy's strong financial performance and positive earnings call are significant strengths, contributing to a solid overall score. Technical indicators support a positive trend, though valuation concerns due to a high P/E ratio and modest dividend yield slightly dampen the outlook. The company is well-positioned in its industry, but attention to leverage and regional challenges is necessary.

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

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 generates revenue primarily through the sale of its diverse range of locking and access control products. The company has multiple key revenue streams, including direct sales to end-users, partnerships with distributors and wholesalers, and contracts with large organizations for integrated security solutions. Additionally, Assa Abloy benefits from recurring revenue through service agreements and maintenance contracts for its electronic systems. Strategic partnerships with technology firms and collaborations with construction companies further enhance its market reach and revenue potential, making it a significant player in the global security solutions industry.

Assa Abloy Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 21, 2025
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 exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is robust, though increasing leverage requires monitoring. Cash flow remains healthy, but the recent decline in free cash flow growth warrants attention.
Income Statement
85
Very Positive
Assa Abloy demonstrates strong revenue growth with a 3.1% increase in TTM, following a robust 6.7% growth in the previous year. The company maintains healthy profitability with a gross profit margin of 42% and a net profit margin of 9.5% in TTM. EBIT and EBITDA margins are solid at 15.2% and 19.0%, respectively, indicating efficient operations. However, there is a slight decline in margins compared to the previous year, which could be a point of concern if the trend continues.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.74 in TTM, slightly higher than the previous year but still within a reasonable range. Return on equity is strong at 14.2%, showcasing effective use of equity to generate profits. The equity ratio stands at 46.3%, indicating a solid capital structure. However, the increase in total debt over the years suggests a need for careful monitoring of leverage.
Cash Flow
72
Positive
Cash flow analysis reveals a slight decline in free cash flow growth at -2.8% in TTM, following positive growth in previous years. The operating cash flow to net income ratio is stable at 0.42, and the free cash flow to net income ratio is healthy at 0.89, indicating good cash conversion. The decline in free cash flow growth could pose a risk if it persists, necessitating attention to cash management strategies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.95B150.16B140.72B120.79B95.01B87.65B
Gross Profit64.30B62.73B56.50B47.93B37.78B34.31B
EBITDA29.12B29.85B26.95B22.66B17.80B15.98B
Net Income14.53B15.64B13.63B13.29B10.90B9.17B
Balance Sheet
Total Assets214.38B223.60B196.35B154.56B129.97B117.43B
Cash, Cash Equivalents and Short-Term Investments2.09B4.53B1.70B3.42B4.33B2.80B
Total Debt73.15B73.50B65.19B33.73B28.75B29.46B
Total Liabilities114.95B116.52B104.71B68.54B60.38B58.55B
Stockholders Equity99.32B107.07B91.63B86.01B69.58B58.87B
Cash Flow
Free Cash Flow18.23B19.33B18.66B12.36B10.74B11.85B
Operating Cash Flow20.55B21.39B21.29B14.36B12.46B13.66B
Investing Cash Flow-17.98B-13.93B-47.90B-10.56B-3.09B-6.74B
Financing Cash Flow-4.00B-4.45B24.73B-4.70B-7.81B-4.56B

Assa Abloy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.71
Price Trends
50DMA
16.50
Positive
100DMA
15.90
Positive
200DMA
15.51
Positive
Market Momentum
MACD
0.32
Positive
RSI
61.55
Neutral
STOCH
38.32
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 17.71 is above the 20-day moving average (MA) of 17.26, above the 50-day MA of 16.50, and above the 200-day MA of 15.51, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 38.32 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$14.73B23.8338.99%1.16%5.49%14.46%
78
Outperform
$7.22B13.0017.13%2.53%3.80%-3.18%
77
Outperform
$39.15B27.7914.13%1.59%6.78%1.53%
75
Outperform
$6.66B24.2624.23%1.19%0.55%1.85%
75
Outperform
$5.14B64.31-26.27%20.00%-547.75%
73
Outperform
$1.33B31.4524.98%1.34%-3.81%-11.48%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASAZY
Assa Abloy
17.71
1.84
11.59%
MSA
MSA Safety
172.88
-4.38
-2.47%
NSSC
Napco Security Technologies
38.33
-5.52
-12.59%
ALLE
Allegion
170.97
35.65
26.34%
ADT
Adt
8.68
1.53
21.40%
REZI
Resideo Technologies
34.27
14.36
72.12%
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: Aug 27, 2025