Assa Abloy (ASSA.B) AI Stock Analysis

• Market Cap: kr394.77B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.97
• Revenue Growth: 4.15%
• EPS Growth: -4.20%
• Country: SE
• Employees: 64,460
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 3.73
• Shares Outstanding: 1,055,050,400
• 10 Day Avg. Volume: 1,320,533
• 30 Day Avg. Volume: 1,250,286
• 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: kr376.60
• Price Target Upside: 5.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: kr403.00 ▲(13.39% Upside)

Assa Abloy demonstrates strong financial performance with robust revenue growth and profitability. The technical indicators suggest positive market momentum. However, the valuation is relatively high, which could limit upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and market expansion, enhancing the company's competitive position and long-term profitability.

Profitability

Healthy profit margins suggest efficient cost management and pricing power, supporting sustainable earnings and reinvestment capacity.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, supporting long-term growth.

Negative Factors

EBIT and EBITDA Margins

Declining EBIT and EBITDA margins may indicate rising operational costs or pricing pressures, potentially impacting future profitability.

Cash Conversion Efficiency

Lower cash conversion efficiency suggests challenges in converting income into cash, which could limit liquidity for reinvestment and debt servicing.

EPS Growth

Negative EPS growth indicates potential challenges in maintaining earnings momentum, which could affect investor confidence and capital raising ability.

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 primarily through the sale of its diverse range of locking and access solutions, which include mechanical locks, electronic locks, and mobile access systems. Key revenue streams come from both product sales and service contracts, with a significant portion of revenue derived from the commercial sector, including hospitality, education, and healthcare industries. The company also benefits from recurring revenue through maintenance services and upgrades for its electronic systems. Strategic partnerships with construction firms and technology providers further enhance its market reach and product offerings, contributing to its overall earnings.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy shows strong revenue growth and solid profitability metrics. The balance sheet is stable with moderate debt levels, and cash flow generation is robust, though there is room for improvement in cash conversion efficiency.

Income Statement

Assa Abloy demonstrates strong revenue growth with a TTM increase of 47.6%, indicating robust demand and market expansion. The gross profit margin is healthy at 42.04%, and the net profit margin is solid at 9.50%. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.74, reflecting a balanced approach to leveraging. Return on equity is strong at 14.23%, showcasing effective use of equity to generate profits. The equity ratio stands at 47.61%, indicating a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Free cash flow growth is positive at 5.74%, and the free cash flow to net income ratio is high at 88.73%, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is lower at 42.34%, suggesting room for improvement in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.68B	150.16B	140.72B	120.79B	95.01B	87.65B
Gross Profit	65.00B	62.73B	56.50B	47.93B	37.78B	34.31B
EBITDA	29.38B	29.85B	26.95B	22.66B	18.02B	15.98B
Net Income	14.68B	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet
Total Assets	216.06B	223.60B	196.35B	154.56B	129.97B	117.43B
Cash, Cash Equivalents and Short-Term Investments	3.32B	4.50B	1.70B	3.42B	4.33B	2.80B
Total Debt	69.53B	73.50B	65.19B	33.73B	28.75B	29.46B
Total Liabilities	113.06B	116.52B	104.71B	68.54B	60.38B	58.55B
Stockholders Equity	102.88B	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow
Free Cash Flow	19.28B	19.33B	18.88B	12.36B	10.74B	11.85B
Operating Cash Flow	21.49B	21.39B	21.29B	14.36B	12.46B	13.66B
Investing Cash Flow	-14.07B	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
Financing Cash Flow	-8.10B	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 355.40
• 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 355.4 is below the 20-day moving average (MA) of 356.39, above the 50-day MA of 354.06, and above the 200-day MA of 319.95, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 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	76 Outperform	kr394.77B	26.89	14.58%	1.66%	4.15%	-4.20%
SECU.B	69 Neutral	kr83.24B	16.51	13.13%	3.10%	-0.74%	6.55%
LOOMIS	66 Neutral	kr25.57B	14.69	14.28%	3.63%	2.58%	19.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%