Assa Abloy (ASAZY)
OTHER OTC:ASAZY
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Assa Abloy
(OTC:ASAZY)
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Rating:65Neutral
Price Target:
$21.00
▲(11.94% Upside)
Action:ReiteratedDate:02/08/26
The score is primarily supported by solid profitability and cash generation, reinforced by constructive (but mixed) earnings-call fundamentals. It is held back by expensive valuation and technically overbought conditions, alongside near-term risks flagged on the call (notably FX headwinds and acquisition-related dilution).
Positive Factors
Strong cash generation
Sustained high cash conversion (Q4 137%, FY 106%) indicates robust free cash flow relative to reported earnings, supporting dividends, bolt-on M&A and balance-sheet repair. This cash strength underpins durable capital allocation flexibility even if revenue growth moderates.
Negative Factors
Significant FX headwinds
Large and persistent currency translation effects materially reduce reported sales and shave margins. For the next several quarters FX volatility can mask underlying organic growth, complicate planning, and materially depress reported results despite underlying operational strength.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high cash conversion (Q4 137%, FY 106%) indicates robust free cash flow relative to reported earnings, supporting dividends, bolt-on M&A and balance-sheet repair. This cash strength underpins durable capital allocation flexibility even if revenue growth moderates.
Read all positive factors
Assa Abloy (ASAZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.45B
Dividend Yield1.27%
Average Volume (3M)7.08K
Price to Earnings (P/E)22.7
Beta (1Y)0.84
Revenue Growth8.40%
EPS Growth0.21%
CountryUS
Employees64,460
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding2,110,100,000
10 Day Avg. Volume0
30 Day Avg. Volume7,078
Financial Highlights & Ratios
PEG Ratio-2.31
Price to Book (P/B)3.89
Price to Sales (P/S)2.59
P/FCF Ratio22.36
Enterprise Value/Market Cap10.87
Enterprise Value/Revenue3.11
Enterprise Value/Gross Profit7.27
Enterprise Value/Ebitda16.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.85
Revenue Forecast (FY)$16.71B
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 a...
How the Company Makes Money
Assa Abloy makes money primarily by selling access-related products and solutions to building owners, contractors, locksmiths, distributors, retailers, and OEM/industrial customers. Key revenue streams include: (1) Mechanical locking and door hard...
Assa Abloy Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
Overall the call conveys a constructive and resilient operational performance: strong organic growth in Q4, record margins, exceptional cash conversion, active M&A execution and robust divisional performances (notably Global Tech and Americas). These positives were materially offset in reported results by significant FX headwinds, notable weakness in Greater China/APAC and some acquisition dilution (notably Level Lock). Management highlighted actions (pricing, cost savings, pipeline) to mitigate headwinds, but flagged near-term seasonality, FX and commodity uncertainty which may pressure Q1. On balance, the company reported strong execution and structural improvements while facing tangible short-term macro and transactional challenges.Positive Updates
Record quarterly margins and operating leverage
Q4 record margins: EBIT margin 16.8% (up ~30 bps year-over-year) and EBITA margin 17.9%; strong operating leverage across the group (quarter-level operating leverage ~80 bps; Americas 120 bps; Global Tech significant leverage). EBIT in Q4 was SEK 6.5 billion.
Negative Updates
Material currency headwinds
Major FX drag: ~-10% FX effect on Q4 top line leading to reported sales down ~3% despite organic +4% and acquisitions +3%. Full-year FX ~-7%; Q1 FX calculation deteriorated (mentioned -13% for Q1 in updated calculation) and FX reduced bottom-line by ~30 bps in Q4 with expectations of similar or larger impact in Q1.
Read all updates
Q4-2025 Updates
Positive
Negative
Record quarterly margins and operating leverage
Q4 record margins: EBIT margin 16.8% (up ~30 bps year-over-year) and EBITA margin 17.9%; strong operating leverage across the group (quarter-level operating leverage ~80 bps; Americas 120 bps; Global Tech significant leverage). EBIT in Q4 was SEK 6.5 billion.
Read all positive updates
Company Guidance
Management guided that pricing for 2026 should be roughly 1.5–2% (with some tariff carry‑over), warned currencies remain a major headwind (Q1 FX calc ~‑13% in the January update, full‑year FX ~‑8%) with FX already shaving ~30 bps off Q4 margins and likely larger in Q1, and reiterated a continued M&A cadence (ambition ~5% acquired net growth per year; carry‑over M&A ~1% for 2026 and ~3% in Q1) while relying on operational leverage to defend margins (record Q4 EBIT 16.8% / EBITA 17.9%; 12‑month operating margin trend 16.2% and EBITA 17.2%), expecting to offset material inflation with price measures, and pointing to strong cash metrics (Q4 cash conversion 137%, FY cash conversion 106%), a solid balance sheet (net debt/EBITDA ~2.1, net debt/equity ~63%) and a proposed dividend of SEK 6.4 per share.Assa Abloy Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
66
Positive
Cash Flow
69
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 152.41B | 150.16B | 140.72B | 120.79B | 95.01B |
| Gross Profit | 64.97B | 62.73B | 56.50B | 47.93B | 37.78B |
| EBITDA | 29.43B | 29.85B | 26.95B | 22.66B | 18.02B |
| Net Income | 14.70B | 15.64B | 13.63B | 13.29B | 10.90B |
Balance Sheet | |||||
| Total Assets | 208.37B | 223.60B | 196.35B | 154.56B | 129.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40B | 4.53B | 1.70B | 3.42B | 4.33B |
| Total Debt | 65.35B | 73.50B | 65.19B | 33.73B | 28.75B |
| Total Liabilities | 106.65B | 116.52B | 104.71B | 68.54B | 60.38B |
| Stockholders Equity | 101.60B | 107.07B | 91.63B | 86.01B | 69.58B |
Cash Flow | |||||
| Free Cash Flow | 17.68B | 19.33B | 18.66B | 12.36B | 10.74B |
| Operating Cash Flow | 20.13B | 21.39B | 21.29B | 14.36B | 12.46B |
| Investing Cash Flow | -12.37B | -13.93B | -47.90B | -10.56B | -3.09B |
| Financing Cash Flow | -10.51B | -4.45B | 24.73B | -4.70B | -7.81B |
Assa Abloy Technical Analysis
Positive
18.76
Price Trends
19.72
Negative
19.47
Positive
18.37
Positive
Market Momentum
-0.31
Negative
59.76
Neutral
87.00
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 18.76 is above the 20-day moving average (MA) of 18.09, below the 50-day MA of 19.72, and above the 200-day MA of 18.37, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 87.00 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.50B | 27.53 | 27.45% | 1.29% | -2.28% | -9.94% | |
72 Outperform | $12.60B | 21.24 | 34.76% | 1.27% | 6.87% | 13.53% | |
72 Outperform | $6.65B | 22.52 | 21.82% | 1.30% | 3.31% | 2.58% | |
70 Outperform | $5.60B | 10.53 | 16.19% | 2.73% | 4.77% | -22.78% | |
65 Neutral | $43.45B | 22.72 | 14.52% | 1.27% | 8.40% | 0.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $5.72B | 9.68 | -18.10% | ― | 15.45% | -488.24% |
* Industrials Sector Average
ASAZY
Assa Abloy
19.48
5.84
42.81%
MSA
MSA Safety
171.42
31.30
22.34%
NSSC
Napco Security Technologies
42.08
21.38
103.32%
ALLE
Allegion
146.29
25.85
21.46%
ADT
Adt
6.83
-0.64
-8.62%
REZI
Resideo Technologies
37.82
22.24
142.75%
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.