Assa Abloy (ASAZY) AI Stock Analysis

• Market Cap: $39.61B
• Dividend Yield: 1.56%
• Average Volume (3M): 26.94K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.80
• Revenue Growth: 6.78%
• EPS Growth: 1.53%
• Country: US
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.18
• Shares Outstanding: 2,110,100,000
• 10 Day Avg. Volume: 10,093
• 30 Day Avg. Volume: 26,943
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.65
• Enterprise Value/Ebitda: 1.44
• 1Y Price Target: $20.00
• Price Target Upside: 13.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $20.00 ▲(13.31% 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 Business Overview & Revenue Model

Company Description

ASSA 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 Money

Assa 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.95B	150.16B	140.72B	120.79B	95.01B	87.65B
Gross Profit	64.30B	62.73B	56.50B	47.93B	37.78B	34.31B
EBITDA	29.12B	29.85B	26.95B	22.66B	17.80B	15.98B
Net Income	14.53B	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet
Total Assets	214.38B	223.60B	196.35B	154.56B	129.97B	117.43B
Cash, Cash Equivalents and Short-Term Investments	2.09B	4.53B	1.70B	3.42B	4.33B	2.80B
Total Debt	73.15B	73.50B	65.19B	33.73B	28.75B	29.46B
Total Liabilities	114.95B	116.52B	104.71B	68.54B	60.38B	58.55B
Stockholders Equity	99.32B	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow
Free Cash Flow	18.23B	19.33B	18.66B	12.36B	10.74B	11.85B
Operating Cash Flow	20.55B	21.39B	21.29B	14.36B	12.46B	13.66B
Investing Cash Flow	-17.98B	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
Financing Cash Flow	-4.00B	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAZY, the sentiment is Neutral. The current price of 17.65 is below the 20-day moving average (MA) of 17.88, above the 50-day MA of 17.20, and above the 200-day MA of 15.72, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASAZY.

Assa Abloy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALLE	79 Outperform	15.39B	24.83	35.05%	1.12%	5.49%	14.46%
ADT	78 Outperform	7.12B	12.96	13.18%	2.57%	3.80%	-3.18%
ASAZY	77 Outperform	$39.61B	28.53	14.13%	1.56%	6.78%	1.53%
REZI	75 Outperform	6.25B	-7.79	-29.69%	―	20.00%	-547.75%
MSA	73 Outperform	6.69B	24.32	22.11%	1.22%	0.55%	1.85%
NSSC	73 Outperform	1.52B	35.31	25.74%	1.24%	-3.81%	-11.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%