Hexagon AB (HEXA.B) AI Stock Analysis

• Market Cap: kr299.31B
• Dividend Yield: 1.46%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 39.5
• Beta (1Y): 1.40
• Revenue Growth: -0.93%
• EPS Growth: -34.25%
• Country: SE
• Employees: 25,091
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.03
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 2,221,020
• 30 Day Avg. Volume: 3,200,334
• PEG Ratio: 1.28
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 4.56
• P/FCF Ratio: 25.76
• 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: kr119.40
• Price Target Upside: 7.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr112.00 ▲(0.45% Upside)

Hexagon AB's overall stock score is driven by strong financial performance, particularly in revenue growth and cash flow management. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. The lack of earnings call data and notable corporate events limits further insights.

Positive Factors

Cash Generation

Strong cash generation indicates Hexagon AB's ability to fund operations, invest in growth, and return capital to shareholders, enhancing long-term stability.

Revenue Growth

Robust revenue growth suggests Hexagon AB's products and services are in high demand, supporting its market position and potential for future expansion.

Balance Sheet Health

A strong balance sheet with moderate leverage provides Hexagon AB with financial flexibility to navigate economic cycles and invest in strategic opportunities.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in converting revenue into profit, which could impact Hexagon AB's ability to sustain long-term growth and shareholder returns.

Operational Efficiency

Decreasing operational margins may signal inefficiencies or rising costs, potentially affecting Hexagon AB's competitive edge and profitability over time.

Return on Equity

Low return on equity suggests Hexagon AB may not be effectively utilizing shareholder funds to generate profits, which could hinder investor confidence and capital attraction.

Hexagon AB Business Overview & Revenue Model

Company Description

Hexagon AB (publ) provides information technology solutions for geospatial and industrial applications worldwide. The company operates through two segments, Industrial Enterprise Solutions (IES) and Geospatial Enterprise Solutions (GIS). The IES segment offers metrology systems that incorporate the in-sensor technology for measurements, as well as computer-aided design, computer-aided manufacturing, and computer-aided engineering software. Its solutions include coordinate measuring machines, laser trackers and scanners, industrial metrology software, and operations management solutions. This segment's solutions are used in electronics and manufacturing, power and energy, automotive, aerospace and defense, and other industries. The GIS segment provides sensors for capturing data from land and air, as well as for positioning through satellites; and GIS software for the creation of 3D maps and models, which are used for decision-making in various software applications covering areas comprising surveying, construction, public safety, and agriculture. Its solutions comprise laser scanner, airborne camera, unmanned aerial vehicle, mobile mapping technology, and precise positioning solutions. This segment's solutions are used in surveying, infrastructure and construction, natural resources, public safety, aerospace and defense, and other industries. The company was formerly known as Eken Industri & Handel AB and changed its name to Hexagon AB (publ) in 1993. Hexagon AB (publ) was incorporated in 1975 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Hexagon AB generates revenue through multiple streams, primarily from software solutions, hardware sales, and services. The company earns significant income from licensing its software products to businesses for design, engineering, and data analytics. Additionally, Hexagon sells advanced measurement equipment and sensors, which are crucial in industries such as manufacturing and construction. Service agreements and maintenance contracts further contribute to its revenue by providing ongoing support and updates for its technologies. Strategic partnerships with key industry players and its presence in diverse sectors enhance its market reach and financial stability, allowing for continued growth and innovation.

Hexagon AB Financial Statement Overview

Summary

Hexagon AB exhibits strong financial health with impressive revenue growth and solid profitability margins. The balance sheet is well-managed with moderate leverage, and cash flow generation is robust, supporting future growth initiatives. Minor concerns exist regarding operational efficiency and cash coverage, but overall financial performance is strong.

Income Statement

Hexagon AB has demonstrated strong revenue growth with a 30.4% increase in TTM, supported by solid gross and net profit margins of 66.95% and 17.31% respectively. The EBIT and EBITDA margins are also healthy at 24.43% and 35.82%, indicating efficient operational management. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is stable with a moderate debt-to-equity ratio of 0.44, indicating a balanced approach to leveraging. The return on equity is reasonable at 8.90%, though it has slightly decreased from the previous year, suggesting a need for improved profitability. The equity ratio of 58.64% reflects a strong equity base, providing a cushion against liabilities.

Cash Flow

Hexagon AB's cash flow is robust, with a significant free cash flow growth rate of 225.3% in TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.74 indicates efficient cash conversion, while the free cash flow to net income ratio of 0.62 suggests effective reinvestment strategies. However, the operating cash flow coverage ratio has decreased, indicating potential challenges in covering liabilities with operational cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.63B	5.40B	5.44B	5.16B	4.34B	3.76B
Gross Profit	12.12B	3.61B	3.54B	3.36B	2.80B	2.37B
EBITDA	4.86B	2.01B	1.78B	1.75B	1.58B	1.32B
Net Income	329.68M	1.02B	858.90M	1.01B	801.60M	618.10M
Balance Sheet
Total Assets	187.27B	17.85B	16.88B	16.48B	14.10B	10.70B
Cash, Cash Equivalents and Short-Term Investments	6.50B	663.80M	547.10M	486.30M	472.10M	397.40M
Total Debt	47.23B	3.83B	4.08B	3.87B	2.94B	2.65B
Total Liabilities	76.68B	6.65B	6.84B	6.61B	5.33B	4.75B
Stockholders Equity	110.24B	11.16B	10.01B	9.83B	8.73B	5.93B
Cash Flow
Free Cash Flow	4.25B	955.90M	743.80M	763.30M	898.70M	909.90M
Operating Cash Flow	5.05B	1.59B	1.37B	1.33B	1.32B	1.30B
Investing Cash Flow	-2.84B	-710.10M	-1.03B	-1.80B	-1.17B	-1.18B
Financing Cash Flow	-1.66B	-764.10M	-249.30M	493.30M	-86.50M	-188.70M

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HEXA.B, the sentiment is Positive. The current price of 111.5 is above the 20-day moving average (MA) of 108.23, above the 50-day MA of 111.50, and above the 200-day MA of 104.81, indicating a bullish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HEXA.B.

Hexagon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HANZA	69 Neutral	kr5.82B	28.51	―	0.65%	18.96%	48.93%
NOTE	66 Neutral	kr5.02B	18.70	17.21%	3.91%	-2.98%	2.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCAB	61 Neutral	kr8.72B	44.76	―	―	0.26%	-30.60%
HEXA.B	60 Neutral	kr299.31B	39.50	6.71%	1.46%	-0.93%	-34.25%

Hexagon AB Corporate Events

Hexagon AB Reports 4% Organic Growth Amid Strategic Restructuring

Hexagon AB reported a 4% organic revenue growth for the third quarter of 2025, driven by strong performance in its Autonomous Solutions business. Despite a decrease in adjusted operating earnings and margins, the company is positioning itself for future growth with a new operating model and cost improvements, while progressing on the potential separation of its Octave division.

The most recent analyst rating on ($SE:HEXA.B) stock is a Hold with a SEK110.00 price target. To see the full list of analyst forecasts on Hexagon AB stock, see the SE:HEXA.B Stock Forecast page.