Hexagon AB (HXGBY) AI Stock Analysis

• Market Cap: $31.31B
• Dividend Yield: 1.34%
• Average Volume (3M): 9.16K
• Price to Earnings (P/E): 43.1
• Beta (1Y): 0.89
• Revenue Growth: 2.98%
• EPS Growth: -33.47%
• Country: US
• Employees: 25,091
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,157
• PEG Ratio: 1.28
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 4.55
• P/FCF Ratio: 25.68
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 6.40
• Enterprise Value/Gross Profit: 9.66
• Enterprise Value/Ebitda: 19.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $6.35B

• Rating: 67 Neutral
• Price Target: $12.50 ▲(6.11% Upside)

Hexagon AB's overall stock score reflects strong financial performance and strategic initiatives, but is tempered by technical weaknesses and valuation concerns. The earnings call provided a balanced view with both positive strategic moves and ongoing challenges.

Positive Factors

Revenue Growth

Consistent organic growth indicates strong market demand and effective product positioning, supporting long-term revenue expansion.

Strategic Divestments

Strategic divestments enhance focus on core areas and improve capital allocation, potentially boosting long-term profitability.

Cost Efficiency Program

The cost efficiency program is expected to improve margins significantly, enhancing financial performance and competitiveness.

Negative Factors

Below Target Operating Margins

Persistent below-target margins may indicate structural inefficiencies, impacting profitability and requiring strategic adjustments.

Impairment Charges

Significant impairment charges reflect past missteps in innovation and inventory management, potentially affecting future earnings.

Geosystems Weakness in China

Weakness in the Chinese market due to reduced infrastructure projects could hinder growth in a key region, affecting overall performance.

Hexagon AB Business Overview & Revenue Model

Company Description

Hexagon AB is a global leader in digital reality solutions, combining sensor, software, and autonomous technologies. The company operates primarily in the fields of geospatial and industrial manufacturing, offering products and services that enhance productivity and quality. Its core offerings include 3D laser scanning, measurement technologies, and software solutions designed for industries such as construction, manufacturing, automotive, and aerospace.

How the Company Makes Money

Hexagon AB generates revenue through multiple streams, primarily from the sale of hardware and software solutions, along with maintenance and support services. The company’s hardware products include laser scanners and measurement systems, while its software solutions encompass a range of applications for design, engineering, and data analysis. Significant revenue also comes from subscription-based services and recurring maintenance contracts, which provide ongoing support for their software products. Additionally, partnerships with industry leaders and integration of their technologies into various platforms help expand Hexagon's market reach and enhance its product offerings, contributing to steady revenue growth.

Hexagon AB Financial Statement Overview

Summary

Hexagon AB demonstrates strong financial health with consistent revenue growth and effective cost management. However, the decline in net profit margin and low operating cash flow coverage ratio indicate areas for improvement.

Income Statement

Hexagon AB's income statement shows a consistent revenue growth trend, with a 4.1% increase in the TTM period. The gross profit margin remains robust at 65.1%, indicating strong cost management. However, the net profit margin has significantly decreased to 1.77% in the TTM, reflecting potential challenges in managing expenses or increased costs. EBIT and EBITDA margins are stable, but the decline in net profit margin is a concern.

Balance Sheet

The balance sheet of Hexagon AB is solid, with a manageable debt-to-equity ratio of 0.43, indicating a balanced approach to leveraging. The return on equity is relatively low at 0.93%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a strong capital structure and financial stability.

Cash Flow

Hexagon AB's cash flow statement shows a positive free cash flow growth rate of 19.8% in the TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.13, suggesting potential inefficiencies in converting income into cash. The free cash flow to net income ratio is strong at 0.84, highlighting effective cash management despite the low operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.66B	5.40B	5.44B	5.16B	4.34B	3.76B
Gross Profit	3.75B	3.61B	3.54B	3.36B	2.80B	2.37B
EBITDA	1.83B	2.01B	1.78B	1.72B	1.40B	1.01B
Net Income	667.09M	1.02B	858.90M	1.01B	801.60M	618.10M
Balance Sheet
Total Assets	19.91B	17.85B	16.88B	16.48B	14.10B	10.70B
Cash, Cash Equivalents and Short-Term Investments	690.67M	663.80M	547.10M	486.30M	472.10M	397.40M
Total Debt	5.02B	3.83B	4.08B	3.87B	2.94B	2.65B
Total Liabilities	8.15B	6.65B	6.84B	6.61B	5.33B	4.75B
Stockholders Equity	11.72B	11.16B	10.01B	9.83B	8.73B	5.93B
Cash Flow
Free Cash Flow	1.21B	955.90M	743.80M	763.30M	898.70M	909.90M
Operating Cash Flow	1.72B	1.59B	1.37B	1.33B	1.32B	1.30B
Investing Cash Flow	-1.32B	-710.10M	-1.03B	-1.80B	-1.17B	-1.18B
Financing Cash Flow	-313.17M	-764.10M	-249.30M	493.30M	-86.50M	-188.70M

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXGBY, the sentiment is Positive. The current price of 11.78 is above the 20-day moving average (MA) of 11.64, below the 50-day MA of 11.90, and above the 200-day MA of 10.96, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HXGBY.

Hexagon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	77 Outperform	$35.28B	42.04	15.82%	―	7.95%	39.54%
TRMB	74 Outperform	$19.04B	54.41	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$17.61B	31.67	7.79%	0.43%	-8.96%	-30.29%
TDY	71 Outperform	$24.43B	30.15	8.11%	―	7.41%	-12.85%
HXGBY	67 Neutral	$31.31B	43.11	6.29%	1.34%	2.98%	-33.47%
COHR	66 Neutral	$30.07B	275.79	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hexagon AB Corporate Events

Hexagon AB’s Earnings Call: Growth Amid Challenges

Hexagon AB’s recent earnings call conveyed a cautiously optimistic sentiment, highlighting a return to organic growth and robust cash conversion. The company celebrated successful product launches and strategic acquisitions, which bolstered its performance. However, challenges such as currency impacts, geopolitical uncertainties, and difficulties in specific divisions and regions, particularly Geosystems and EMEA, were also acknowledged.

Hexagon AB Reports Organic Growth Amid Market Challenges

Hexagon AB, a leading company in precision measurement technologies and data-driven insights, operates across various sectors including manufacturing intelligence, asset lifecycle intelligence, and autonomous solutions. In its latest earnings report for the first half of 2025, Hexagon reported a return to organic growth with a 3% increase in organic revenue and a 1% rise in net sales, reaching 1,370.7 MEUR. Despite a challenging market environment, the company achieved a strong cash conversion rate of 104%, although adjusted operating earnings saw a decline of 10% due to currency impacts. Key highlights include the launch of new products such as the AEON humanoid robot and MAESTRO coordinate measurement machine, as well as strategic acquisitions and divestments to streamline operations. Looking forward, Hexagon’s management is focused on accelerating organic growth and implementing a cost improvement program to navigate ongoing market uncertainties and enhance performance.