Assa Abloy (ASSA.B) AI Stock Analysis

• Market Cap: kr345.90B
• Dividend Yield: 1.82%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.02
• Revenue Growth: 6.53%
• EPS Growth: 1.84%
• Country: SE
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 90
• Industry: Security & Protection Services
• EPS (TTM): 3.20
• Shares Outstanding: 1,055,050,400
• 10 Day Avg. Volume: 1,671,667
• 30 Day Avg. Volume: 1,821,142
• PEG Ratio: -3.56
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.51
• 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: kr323.73
• Price Target Upside: 5.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: kr335.00 ▲(8.91%Upside)

Assa Abloy's overall stock score of 74 reflects a robust financial performance, which is the most significant factor contributing to the score. The company's strong financial health, efficient cost management, and substantial cash flows are major positives. Technical analysis contributes a moderate score, indicating some positive momentum but with room for improvement. Valuation metrics suggest the stock might be slightly overvalued, which tempers the overall score.

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 the sale of its diverse range of access solutions and products across its global segments. The company's key revenue streams include the production and sale of mechanical and electronic locks, door closers, security doors, and entrance automation systems. Additionally, Assa Abloy offers services such as installation, maintenance, and consulting related to its products. The company benefits from significant partnerships with security and construction firms, as well as technological collaborations that enhance its product offerings. Its earnings are also supported by its strategic acquisitions and its ability to innovate and meet the growing demand for integrated security solutions in various markets.

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. While the leverage is well-balanced, the company continues to generate substantial cash flows, ensuring operational and strategic flexibility. 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
152.90B	150.16B	140.72B	120.79B	95.01B	87.65B
	Gross Profit
63.84B	62.73B	56.50B	47.93B	37.78B	34.31B
	EBIT
23.18B	24.27B	21.79B	18.53B	14.18B	12.46B
	EBITDA
28.95B	29.85B	26.95B	22.66B	17.80B	15.98B
	Net Income Common Stockholders
14.64B	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.14B	4.50B	1.70B	3.42B	4.33B	2.80B
	Total Assets
219.34B	223.60B	196.35B	154.56B	129.97B	117.43B
	Total Debt
75.31B	73.50B	65.19B	33.73B	28.75B	29.46B
	Net Debt
71.17B	69.00B	63.73B	30.32B	24.43B	26.70B
	Total Liabilities
117.96B	116.52B	104.71B	68.54B	60.38B	58.55B
	Stockholders Equity
101.25B	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow		Free Cash Flow
18.76B	19.33B	18.88B	12.36B	10.74B	11.85B
	Operating Cash Flow
21.13B	21.39B	21.29B	14.36B	12.46B	13.66B
	Investing Cash Flow
-18.60B	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
	Financing Cash Flow
-747.00M	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 307.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 307.6 is above the 20-day moving average (MA) of 306.35, above the 50-day MA of 293.41, and below the 200-day MA of 318.49, indicating a neutral trend. The MACD of 2.48 indicates Positive momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 82.30 is Negative, 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	74 Outperform	kr345.90B	23.63	14.55%	1.82%	6.53%	1.84%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
0JYZ		kr24.96B	15.68	12.54%	3.69%	―	―
0IAH		kr81.38B	15.10	13.48%	2.90%	―	―