Assa Abloy (ASSA.B) AI Stock Analysis

• Market Cap: kr357.34B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.01
• Revenue Growth: 4.03%
• EPS Growth: -1.24%
• Country: SE
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 84
• Industry: Security & Protection Services
• EPS (TTM): 3.57
• Shares Outstanding: 1,055,050,400
• 10 Day Avg. Volume: 1,191,519
• 30 Day Avg. Volume: 1,345,424
• PEG Ratio: 1.57
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 18.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr333.67
• Price Target Upside: 3.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: kr364.00 ▲(13.15% Upside)

Assa Abloy shows strong financial performance with solid revenue growth and profitability margins, contributing significantly to the score. Technical analysis indicates a positive market trend, supporting the stock's outlook. However, the valuation suggests the stock may be overvalued, which slightly offsets the positive aspects.

Assa Abloy Business Overview & Revenue Model

Company Description

Assa Abloy (ASSA.B) is a global leader in access solutions, providing a comprehensive range of products and services related to locks, doors, gates, and entrance automation. The company operates in several sectors including residential, commercial, and institutional, and offers solutions such as mechanical and digital locks, entrance automation, and identity verification systems. With a strong focus on innovation and technology, Assa Abloy aims to enhance security and convenience for its customers worldwide.

How the Company Makes Money

Assa Abloy makes money primarily through the sale of its extensive range of access solutions, which include mechanical and electromechanical locks, digital door locks, entrance automation systems, and related hardware. The company operates through various divisions, each targeting different market segments such as residential, commercial, and institutional clients. Revenue is generated by selling these products directly to consumers, as well as through partnerships with distributors and installers who integrate Assa Abloy's solutions into larger projects. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and drive sales growth.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy demonstrates strong financial health across income, balance sheet, and cash flow statements. The company shows impressive revenue and profit growth, efficient cost management, and prudent financial structuring. The financial outlook remains positive, with no immediate risks apparent from the current data.

Income Statement

Assa Abloy exhibits strong revenue growth with a TTM revenue increase to SEK 152.9 billion, indicating a consistent upward trajectory from previous periods. The gross profit margin remains robust at approximately 41.8%, with a net profit margin of 9.6%, reflecting effective cost management and profitability. Additionally, the EBIT and EBITDA margins stand at 15.2% and 18.9% respectively, demonstrating operational efficiency and strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

Assa Abloy's balance sheet shows a healthy equity ratio of 46.1%, suggesting a strong capital structure with substantial equity backing. The debt-to-equity ratio is 0.74, indicating a balanced approach to leveraging debt. Return on equity (ROE) is solid at 14.5%, showcasing efficient use of equity capital to generate profits. The overall financial stability is supported by a significant asset base of SEK 219.3 billion.

Cash Flow

The company maintains a strong operating cash flow to net income ratio of 1.44, highlighting excellent cash generation from operations relative to net income. Free cash flow growth is consistent, with a healthy free cash flow to net income ratio of 1.28, indicating strong cash flow management and the ability to fund operations and investments without relying heavily on external financing.

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	4.50B	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	18.88B	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: Positive
• Last Price: 321.70
• 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 SE:ASSA.B, the sentiment is Positive. The current price of 321.7 is above the 20-day moving average (MA) of 316.06, above the 50-day MA of 306.63, and above the 200-day MA of 314.61, indicating a bullish trend. The MACD of 5.48 indicates Positive momentum. The RSI at 60.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ASSA.B.

Assa Abloy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASSA.B	77 Outperform	kr357.34B	24.59	14.58%	1.77%	4.03%	-1.24%
Sector *	60 Neutral	kr41.58B	12.28	-0.40%	2.22%	1.33%	-2.77%
0JYZ	―	kr25.44B	15.13	13.99%	―	―	―
0IAH	―	kr84.39B	15.00	14.57%	―	―	―