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

Hexagon AB (HEXA.B) AI Stock Analysis

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Hexagon AB

(LSE:HEXA.B)

Rating:70Outperform
Price Target:
kr106.00
▲(12.72%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 (HEXA.B) vs. iShares MSCI Sweden ETF (EWD)

Hexagon AB Business Overview & Revenue Model

Company DescriptionHexagon AB is a leading global provider of information technology solutions that drive productivity and quality across geospatial and industrial enterprise applications. The company's core offerings include a diverse range of software solutions, sensors, and autonomous technologies that enable clients to leverage data-driven insights. Hexagon operates primarily in two sectors: Geospatial Enterprise Solutions and Industrial Enterprise Solutions, catering to industries such as agriculture, construction, mining, manufacturing, and aerospace.
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, a solid balance sheet with low leverage, and consistent cash flow generation. The company is well-positioned in its industry with stable profit margins and effective resource management. However, the moderate revenue growth suggests room for expansion in market reach or product offerings.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.42B5.40B5.44B5.16B4.34B3.76B
Gross Profit3.64B3.61B3.54B3.36B2.80B2.37B
EBITDA1.92B2.01B1.78B1.75B1.58B1.32B
Net Income974.70M1.02B858.90M1.01B801.60M618.10M
Balance Sheet
Total Assets17.76B17.85B16.88B16.48B14.10B10.70B
Cash, Cash Equivalents and Short-Term Investments549.00M663.80M547.10M486.30M472.10M397.40M
Total Debt4.04B3.83B4.08B3.87B2.94B2.65B
Total Liabilities6.77B6.65B6.84B6.61B5.33B4.75B
Stockholders Equity10.95B11.16B10.01B9.83B8.73B5.93B
Cash Flow
Free Cash Flow989.90M955.90M743.80M763.30M898.70M909.90M
Operating Cash Flow1.62B1.59B1.37B1.33B1.32B1.30B
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
Negative
Last Price94.04
Price Trends
50DMA
94.28
Negative
100DMA
103.89
Negative
200DMA
103.55
Negative
Market Momentum
MACD
-0.59
Negative
RSI
47.57
Neutral
STOCH
74.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HEXA.B, the sentiment is Negative. The current price of 94.04 is below the 20-day moving average (MA) of 94.81, below the 50-day MA of 94.28, and below the 200-day MA of 103.55, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HEXA.B.

Hexagon AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
kr5.09B20.2115.49%37.64%-9.37%-15.84%
70
Outperform
kr252.44B22.649.32%18.07%-1.12%14.34%
70
Outperform
kr16.59B56.2532.01%0.63%48.40%90.79%
69
Neutral
€5.19B14.809.71%13.10%-46.33%
65
Neutral
kr45.90B45.4627.34%0.84%15.51%16.11%
64
Neutral
kr63.14B12.401.54%10.07%0.04%-3.90%
53
Neutral
kr273.34B168.771.65%3.51%-1.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:HEXA.B
Hexagon AB
96.20
-23.52
-19.65%
SE:ERIC.B
Telefonaktiebolaget LM Ericsson Class B
81.72
18.43
29.13%
SE:HTRO
Hexatronic Group AB
26.80
-26.28
-49.51%
SE:IVSO
INVISIO AB
366.50
134.95
58.28%
SE:LAGR.B
Lagercrantz Group AB Class B
224.60
48.67
27.67%
SE:NOTE
NOTE AB
174.80
34.26
24.38%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025