Assa Abloy (ASSA.B) AI Stock Analysis

• Market Cap: kr378.00B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.00
• Revenue Growth: 4.03%
• EPS Growth: -1.24%
• Country: SE
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 3.57
• Shares Outstanding: 1,055,050,400
• 10 Day Avg. Volume: 1,213,557
• 30 Day Avg. Volume: 1,078,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr341.00
• Price Target Upside: 2.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: kr364.00 ▲(8.95% 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 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 streams, primarily by selling its diverse range of locking and access control products. The company earns income from both its mechanical and electronic lock divisions, with a significant portion of revenue coming from electronic security solutions. Additionally, Assa Abloy benefits from the growing demand for smart home technologies and integrated security systems. Key revenue streams include direct sales to end-users, distribution through wholesalers and retailers, and partnerships with construction and building firms for large-scale projects. Strategic acquisitions also play a crucial role in expanding its product offerings and market reach, further contributing to its overall earnings.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with manageable leverage, and while cash flow generation remains strong, the recent decline in free cash flow growth warrants attention.

Income Statement

Assa Abloy shows strong revenue growth with a TTM increase of 3.1%, although this is a slowdown from previous years. The gross profit margin remains robust at 42.04%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.5% in the TTM, reflecting some pressure on profitability. EBIT and EBITDA margins are healthy, suggesting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.74, indicating a moderate level of leverage, which is manageable given the industry. Return on equity is solid at 14.23%, showing effective use of shareholder funds. The equity ratio stands at 46.34%, reflecting a stable financial structure with a good balance between debt and equity.

Cash Flow

Free cash flow has decreased by 2.81% in the TTM, which is a concern. However, the operating cash flow to net income ratio is 1.41, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.89, suggesting that a significant portion of earnings is converted into free cash flow.

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: 334.10
• 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 334.1 is below the 20-day moving average (MA) of 337.22, above the 50-day MA of 326.49, and above the 200-day MA of 315.59, indicating a bullish trend. The MACD of 3.85 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 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	kr378.00B	26.01	14.58%	1.66%	4.03%	-1.24%
LOOMIS	69 Neutral	28.15B	16.73	14.38%	3.29%	2.91%	20.66%
SECU.B	64 Neutral	83.33B	14.93	12.09%	2.85%	0.44%	267.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%