Hexagon AB (HEXA.B) AI Stock Analysis

• Market Cap: kr279.71B
• Dividend Yield: 0.02%
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.40
• Revenue Growth: -1.12%
• EPS Growth: 14.34%
• Country: SE
• Employees: 25,091
• Sector: Industrials
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 3,146,451
• 30 Day Avg. Volume: 3,551,846
• PEG Ratio: -4.59
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.81
• 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: kr106.57
• Price Target Upside: 2.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: kr106.00 ▲(1.73%Upside)

Hexagon AB's overall score reflects its strong financial performance with robust profitability and efficient cash flow management. While the technical analysis indicates a neutral momentum, the company's valuation is supported by a strong dividend yield, making it attractive to income investors despite moderate revenue growth.

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 primarily through the sale of its advanced hardware and software solutions, which are designed to improve operational efficiency and productivity for its clients across various industries. Key revenue streams include the sale of geospatial and industrial enterprise solutions, recurring revenue from software licensing and maintenance services, and professional services such as consulting and training. Significant partnerships with industry leaders and continued investments in R&D also bolster Hexagon's revenue potential by expanding its technological capabilities and market reach.

Hexagon AB Financial Statement Overview

Summary

Hexagon AB exhibits strong financial health characterized by robust profitability, a solid balance sheet with low leverage, and consistent cash flow generation. The company maintains strong profit margins and effective resource management. However, moderate revenue growth suggests potential for market expansion.

Income Statement

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

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

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

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.20
• 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 104.2 is above the 20-day moving average (MA) of 98.78, above the 50-day MA of 97.12, and above the 200-day MA of 103.26, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 77.57 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
HEXA.B	70 Outperform	kr279.71B	25.09	9.32%	0.02%	-1.12%	14.34%
Sector *	66 Neutral	CHF6.98B	25.29	14.57%	2.27%	-1.22%	-29.90%
0O87	―	kr243.58B	13.89	20.29%	3.88%	―	―
02H0	―	€379.49M	11.57	9.42%	―	―	―
NQA	―	€506.19M	20.85	16.64%	4.01%	―	―
ICQ	―	€1.32B	59.39	27.03%	0.71%	―	―
LG72	―	€4.19B	44.62	27.70%	0.81%	―	―

Hexagon AB Corporate Events

Hexagon Appoints Anders Svensson as New CEO

Hexagon AB has appointed Anders Svensson as its new President and CEO, effective 20 July 2025. Svensson, who brings over 15 years of leadership experience in industrial technology and engineering, aims to leverage Hexagon’s strong legacy to capture growth opportunities in areas like autonomy, robotics, and AI. This leadership change is expected to strengthen Hexagon’s market position and drive further profitable growth.

The most recent analyst rating on ($SE:HEXA.B) stock is a Buy with a SEK135.00 price target. To see the full list of analyst forecasts on Hexagon AB stock, see the SE:HEXA.B Stock Forecast page.

Hexagon AB AGM Highlights Strategic Initiatives for Growth

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.