Assa Abloy (ASAZY) AI Stock Analysis

• Market Cap: $42.80B
• Dividend Yield: 1.27%
• Average Volume (3M): 30.18K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.78
• Revenue Growth: 8.40%
• EPS Growth: 0.21%
• Country: US
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.20
• Shares Outstanding: 2,110,100,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 30,185
• PEG Ratio: 1.56
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 18.63
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): $16.30B

• Rating: 69 Neutral
• Price Target: $20.50 ▲(9.28% Upside)

Assa Abloy's overall stock score is driven primarily by its strong financial performance and positive technical indicators. The company's profitability and operational efficiency are strong, but recent declines in revenue and free cash flow growth are concerns. The stock's technical indicators suggest a positive trend, but the high P/E ratio indicates a relatively expensive valuation.

Positive Factors

Business Model Strength

Assa Abloy's diversified revenue streams from mechanical and electronic locks, access control, and service contracts provide resilience and adaptability to market changes.

Market Position

As a global leader in access solutions, Assa Abloy benefits from strong brand recognition and a competitive edge in the security and protection services industry.

Profitability and Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitiveness.

Negative Factors

Revenue Decline

A substantial revenue decline poses risks to growth and market share, potentially impacting future profitability and strategic initiatives.

Free Cash Flow Decline

Declining free cash flow growth could affect liquidity and the ability to invest in growth opportunities, impacting long-term financial health.

Leverage Concerns

While leverage is currently manageable, any increase in debt levels could strain financial flexibility and risk management capabilities.

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 through multiple key streams, primarily from the sale of its extensive range of locking and access control products. The company benefits from a diversified portfolio, which includes both traditional mechanical locks and advanced electronic solutions. Major revenue sources include direct sales to end-users, distribution through third-party suppliers, and partnerships with construction and security firms. Additionally, recurring revenues are generated from service contracts, maintenance of electronic security systems, and software solutions for access management. Strategic acquisitions of complementary businesses also enhance its market position and contribute to revenue growth.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy demonstrates strong profitability and operational efficiency, with healthy EBIT and EBITDA margins. However, the significant revenue decline of 21.84% and a 24.65% drop in free cash flow growth in the TTM are concerning. The balance sheet is stable with moderate leverage, and cash flow metrics indicate good cash generation despite recent declines.

Income Statement

Assa Abloy shows strong profitability with a consistent gross profit margin around 42% and a net profit margin close to 10% over the TTM. However, the company experienced a significant revenue decline of 21.84% in the TTM, which is a concern. EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.68, suggesting manageable leverage. Return on equity is solid at 14.31%, reflecting effective use of equity to generate profits. The equity ratio is stable, indicating a balanced capital structure.

Cash Flow

Operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, free cash flow growth has declined by 24.65% in the TTM, which could impact future liquidity. The free cash flow to net income ratio remains robust, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.54B	150.16B	140.72B	120.79B	95.01B	87.65B
Gross Profit	50.27B	62.73B	56.50B	47.93B	37.78B	34.31B
EBITDA	22.33B	29.85B	26.95B	22.66B	18.02B	15.98B
Net Income	10.97B	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet
Total Assets	22.97B	223.60B	196.35B	154.56B	129.97B	117.43B
Cash, Cash Equivalents and Short-Term Investments	352.89M	4.53B	1.70B	3.42B	4.33B	2.80B
Total Debt	7.39B	73.50B	65.19B	33.73B	28.75B	29.46B
Total Liabilities	12.02B	116.52B	104.71B	68.54B	60.38B	58.55B
Stockholders Equity	10.94B	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow
Free Cash Flow	13.74B	19.33B	18.66B	12.36B	10.74B	11.85B
Operating Cash Flow	15.46B	21.39B	21.29B	14.36B	12.46B	13.66B
Investing Cash Flow	-12.48B	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
Financing Cash Flow	-4.78B	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 18.76 is below the 20-day moving average (MA) of 18.85, above the 50-day MA of 18.64, and above the 200-day MA of 16.69, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.55 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.51B	34.54	25.03%	1.28%	-2.28%	-9.94%
MSA	75 Outperform	$6.24B	22.44	23.35%	1.32%	3.31%	2.58%
ALLE	72 Outperform	$13.74B	21.61	36.41%	1.28%	6.87%	13.53%
ASAZY	69 Neutral	$42.80B	29.42	13.95%	1.27%	8.40%	0.21%
ADT	69 Neutral	$6.67B	11.62	17.24%	2.70%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.41B	-7.39	-20.90%	―	15.45%	-488.24%

Assa Abloy Corporate Events

Assa Abloy Reports Strong Q3 2025 Earnings Growth

Assa Abloy AB is a global leader in access solutions, providing innovative products in the security industry, with a focus on electromechanical and digital solutions. In its third-quarter earnings report for 2025, Assa Abloy reported a 2% increase in net sales to SEK 38,146 million, driven by 3% organic growth and 5% growth from acquisitions, despite a 6% negative impact from exchange rates. The company completed five acquisitions during the quarter, contributing to its strategic expansion. Operating income increased by 3% to SEK 6,416 million, with an operating margin of 16.8%, the highest in a decade. Earnings per share also rose by 3% to SEK 3.73. The company continues to lead the transition to electromechanical solutions, with a 12% currency-adjusted growth in this segment year-to-date. Looking ahead, Assa Abloy remains focused on innovation and strategic acquisitions to maintain its competitive edge in the evolving security market.