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Hexagon AB (SE:HEXA.B)
:HEXA.B

Hexagon AB (HEXA.B) AI Stock Analysis

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Hexagon AB

(LSE:HEXA.B)

Rating:77Outperform
Price Target:
kr111.00
▲(13.96%Upside)
Hexagon AB's strong financial performance is the primary contributor to its overall score, driven by robust profitability and a healthy balance sheet. The neutral technical analysis suggests stable near-term price activities, while the valuation reflects a fair market price. The lack of earnings call data and corporate events limits additional insights.

Hexagon AB (HEXA.B) vs. iShares MSCI Sweden ETF (EWD)

Hexagon AB Business Overview & Revenue Model

Company DescriptionHexagon 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 MoneyHexagon AB generates revenue through the sale of its software solutions, sensors, and related services. The company offers a variety of products, such as computer-aided design (CAD) software, geographic information systems (GIS), and precision measurement tools, which are sold to industries that require data accuracy and analysis. Hexagon further monetizes its offerings through subscription models for software services and maintenance contracts, ensuring a recurring revenue stream. Strategic partnerships with technology firms and industry leaders also enhance its market reach and drive additional revenue. The company's focus on innovation and customer-centric solutions contributes significantly to its earnings.

Hexagon AB Financial Statement Overview

Summary
Hexagon AB exhibits strong financial health characterized by robust profitability with high profit margins, a solid balance sheet with low leverage, and consistent cash flow generation. However, moderate revenue growth indicates potential for further expansion.
Income Statement
85
Very Positive
Hexagon AB demonstrates strong profitability with a gross profit margin of 67.0% and a net profit margin of 18.0% for TTM (Trailing-Twelve-Months). The EBIT margin is also robust at 25.1%. Although revenue growth has been moderate, the company maintains solid EBITDA margins, reflecting efficient cost management.
Balance Sheet
82
Very Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.37, indicating low leverage relative to equity, and an equity ratio of 61.7%, showing a strong equity base. Return on equity is satisfactory at 8.9%, suggesting effective utilization of equity to generate profits.
Cash Flow
80
Positive
Hexagon AB shows consistent free cash flow generation with a recent growth rate of 3.6%. The operating cash flow to net income ratio is 1.66, highlighting strong cash conversion from profits. While free cash flow to net income ratio stands at 1.02, reflecting adequate coverage of net income by free cash flow.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.42B5.40B5.44B5.16B4.34B3.76B
Gross Profit
3.64B3.61B3.54B3.36B2.80B2.37B
EBIT
1.36B1.43B1.22B1.29B1.01B787.00M
EBITDA
1.92B2.01B1.78B1.75B1.58B1.32B
Net Income Common Stockholders
974.70M1.02B858.90M1.01B801.60M618.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
549.00M663.80M547.10M486.30M472.10M397.40M
Total Assets
17.76B17.85B16.88B16.48B14.10B10.70B
Total Debt
4.04B3.83B4.08B3.87B2.94B2.65B
Net Debt
3.49B3.32B3.67B3.48B2.51B2.32B
Total Liabilities
6.77B6.65B6.84B6.61B5.33B4.75B
Stockholders Equity
10.95B11.16B10.01B9.83B8.73B5.93B
Cash FlowFree Cash Flow
989.90M955.90M743.80M763.30M898.70M909.90M
Operating Cash Flow
1.62B1.59B1.37B1.33B1.32B1.30B
Investing Cash Flow
-1.23B-710.10M-1.03B-1.80B-1.17B-1.18B
Financing Cash Flow
-341.20M-764.10M-249.30M493.30M-86.50M-188.70M

Hexagon AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price97.40
Price Trends
50DMA
95.85
Positive
100DMA
107.19
Negative
200DMA
104.02
Negative
Market Momentum
MACD
0.26
Negative
RSI
52.95
Neutral
STOCH
59.65
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 97.4 is above the 20-day moving average (MA) of 97.06, above the 50-day MA of 95.85, and below the 200-day MA of 104.02, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.65 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
kr261.46B23.459.32%1.55%-1.12%14.34%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
kr276.34B172.151.65%3.37%
€500.33M15.649.71%
DENQA
€407.19M18.2715.49%4.38%
DEICQ
€1.47B57.5432.01%0.62%
€4.24B45.9027.21%0.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:HEXA.B
Hexagon AB
97.40
-17.55
-15.27%
GB:0O87
Telefonaktiebolaget LM Ericsson Class B
83.03
19.84
31.40%
DE:02H0
Hexatronic Group AB
2.48
-1.56
-38.61%
DE:NQA
NOTE AB
13.89
1.07
8.35%
DE:ICQ
INVISIO AB
32.45
10.58
48.38%
DE:LG72
Lagercrantz Group AB Class B
20.60
5.01
32.14%

Hexagon AB Corporate Events

Hexagon AB AGM Highlights Strategic Initiatives for Growth
May 6, 2025

Hexagon AB’s Annual General Meeting resulted in the re-election of key board members and the introduction of a new performance-based long-term share program aimed at enhancing company earnings. The AGM also authorized the board to manage acquisitions and share transfers to optimize capital structure and shareholder value, reflecting a strategic focus on growth and operational efficiency.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.