Assa Abloy (ASAZY) AI Stock Analysis

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Assa Abloy

(OTC:ASAZY)

Rating:78Outperform

Price Target:

$18.50

▲(11.45%Upside)

Assa Abloy's strong financial performance and robust earnings call results are significant positives, showcasing its operational strength and strategic growth through acquisitions. While the technical analysis indicates some caution due to overbought conditions, the valuation suggests the stock is on the expensive side. These factors combine to give a solid overall score, reflecting a well-managed company with some valuation and market sentiment considerations.

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

Market Cap

$36.63B

Dividend Yield1.71%

Average Volume (3M)16.51K

Price to Earnings (P/E)26.0

Beta (1Y)0.83

Revenue Growth6.78%

EPS Growth1.53%

CountryUS

Employees64,460

SectorIndustrials

Sector Strength87

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)0.18

Shares Outstanding2,110,100,000

10 Day Avg. Volume9,726

30 Day Avg. Volume16,509

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.14

Enterprise Value/Revenue0.27

Enterprise Value/Gross Profit0.66

Enterprise Value/Ebitda1.45

Forecast

1Y Price Target

$17.00

Price Target Upside2.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Assa Abloy Business Overview & Revenue Model

Company DescriptionAssa Abloy (ASAZY) is a global leader in access solutions, specializing in the design, production, and distribution of mechanical and electromechanical locking solutions. The company operates in various sectors including commercial, institutional, and residential markets, providing a wide range of products such as locks, doors, gates, and entrance automation systems. Assa Abloy's innovative solutions aim to enhance security and convenience for its customers around the world.

How the Company Makes MoneyAssa Abloy generates revenue primarily through the sale of its comprehensive range of access solutions and security products. The company's key revenue streams include mechanical locks, electromechanical and digital locks, access control systems, and entrance automation products. Assa Abloy also benefits from significant aftermarket sales and service contracts, which provide ongoing revenue. The company's earnings are further supported by strategic partnerships and acquisitions, which allow it to expand its product offerings and enter new geographic markets.

Assa Abloy Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q2-2025)

% Change Since: 7.37%|

Next Earnings Date:Oct 21, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a strong overall performance with positive growth across several segments and successful acquisitions. However, challenges persist in certain markets, particularly in EMEIA and Greater China, as well as in the residential sector. The company's ability to navigate currency headwinds and operational challenges will be crucial for future success.

Q2-2025 Updates

Positive Updates

Strong Overall Performance

Reported a solid Q2 with a good organic growth of 3%, supported by strong growth through acquisitions (5%) and an EBITA margin of 17.2%.

Robust Acquisitions Strategy

Completed 5 acquisitions in the quarter, contributing significantly to growth and representing an annualized sales of SEK 4.4 billion.

High Cash Flow and Conversion

Achieved a strong cash flow of SEK 5.5 billion and a cash conversion rate of 103%.

Positive Developments in Specific Segments

Global Tech reported strong growth with an 8% organic sales increase, and the Americas showed high single-digit growth in the non-residential segment.

Successful Strategic Partnerships and Projects

Notable partnerships and projects include SKIDATA's collaboration with Samsung and significant project wins in South Korea and Illinois.

Negative Updates

Sales Decline in EMEIA and Asia Pacific

Reported sales decline in EMEIA and Asia Pacific, with a significant negative growth in Greater China.

Residential Market Challenges

Continued challenges in the residential market, particularly in North America and Europe, due to high interest rates.

Currency Headwinds

Faced a strong currency headwind of minus 8%, impacting overall sales.

Operational Challenges in Specific Divisions

Entrance Systems reported a small sales growth of 1% and faced challenges in the Industrial segment.

Company Guidance

In the call discussing ASSA ABLOY's Q2 2025 performance, the company reported a robust overall performance with an organic growth rate of 3%, comprising a low 2% price increase and a high 1% volume growth. Notably, this marked the second consecutive quarter of positive organic volume growth. The quarter saw strong sales growth in Global Tech, good growth in the Americas, and a slight increase in Entrance Systems, though EMEIA and Asia Pacific experienced sales declines. Acquisitions contributed a net growth of 5%, despite an 8% currency headwind. The company achieved an EBITA margin of 17.2% and an EBIT margin of 16.2%, supported by a remarkable volume leverage of 53% on the organic growth. Cash flow was strong at SEK 5.5 billion, with a cash conversion rate of 103%. The company completed five acquisitions in the quarter and 11 year-to-date, with annualized sales of SEK 4.4 billion, while also divesting its Citizen ID business, retaining only the U.S. part. The Americas division reported a 4% organic sales increase, driven by high single-digit growth in the North America non-residential segment. However, the EMEIA division faced a 1% organic sales decline, with specific challenges in France's residential market. Overall, ASSA ABLOY maintained a strong operational execution, navigating uncertain market conditions with a decentralized organizational approach and continued focus on acquisitions and operational efficiencies.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy shows strong financials with consistent revenue growth, solid profitability, and sound cash flow management. Despite a slight decrease in return on equity and EBITDA margins, the company's financial health remains robust with low leverage and a high equity ratio.

Income Statement

Very Positive

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.

Balance Sheet

Very Positive

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.

Cash Flow

Very Positive

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.16B	140.72B	120.79B	95.01B	87.65B
Gross Profit	62.73B	56.50B	47.93B	37.78B	34.31B
EBITDA	29.85B	26.95B	22.66B	17.80B	15.98B
Net Income	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet
Total Assets	223.60B	196.35B	154.56B	129.97B	117.43B
Cash, Cash Equivalents and Short-Term Investments	4.50B	1.70B	3.42B	4.33B	2.80B
Total Debt	73.50B	65.19B	33.73B	28.75B	29.46B
Total Liabilities	116.52B	104.71B	68.54B	60.38B	58.55B
Stockholders Equity	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow
Free Cash Flow	19.33B	18.66B	12.36B	10.74B	11.85B
Operating Cash Flow	21.39B	21.29B	14.36B	12.46B	13.66B
Investing Cash Flow	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
Financing Cash Flow	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.60

Price Trends

50DMA

16.00

Positive

100DMA

15.49

Positive

200DMA

15.36

Positive

Market Momentum

MACD

0.25

Positive

RSI

56.30

Neutral

STOCH

11.43

Positive

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 16.6 is above the 20-day moving average (MA) of 16.38, above the 50-day MA of 16.00, and above the 200-day MA of 15.36, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 11.43 is Positive, 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 (71)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASAZY	78 Outperform	$36.63B	26.05	14.13%	1.71%	6.78%	1.53%
MSA	78 Outperform	$6.89B	24.19	24.23%	1.18%	0.75%	7.20%
BRC	77 Outperform	$3.32B	17.37	17.80%	1.37%	8.62%	3.59%
ALLE	77 Outperform	$14.18B	22.94	38.99%	1.20%	5.49%	14.46%
ADT	76 Outperform	$6.90B	12.43	17.13%	2.65%	3.80%	-3.18%
BCO	72 Outperform	$3.58B	22.86	54.50%	1.17%	1.97%	41.88%
Sector *	71 Outperform	¥257.47B	14.37	8.45%	2.83%	6.40%	12.21%

* Industrials Sector Average

Performance Comparison

ASAZY

Assa Abloy

16.60

2.67

19.17%

BRC

Brady

70.47

2.30

3.37%

BCO

Brink's Company

87.50

-12.89

-12.84%

MSA

MSA Safety

177.45

4.23

2.44%

ALLE

Allegion

166.73

40.99

32.60%

ADT

Adt

8.45

1.59

23.18%

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, 2025