Hexagon AB (HEXA.B) AI Stock Analysis

• Market Cap: kr311.39B
• Dividend Yield: 1.41%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.45
• Revenue Growth: -1.88%
• EPS Growth: 8.49%
• Country: SE
• Employees: 25,091
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.08
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 3,452,753
• 30 Day Avg. Volume: 2,855,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr114.20
• Price Target Upside: 2.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: kr125.00 ▲(12.36% Upside)

Hexagon AB's strong financial performance, characterized by robust revenue growth and solid profitability, is the primary driver of its stock score. Technical analysis supports a positive outlook with the stock trading above key moving averages. Valuation metrics suggest moderate growth expectations, with a focus on reinvestment over dividends. The absence of earnings call and corporate events data limits further insights.

Hexagon AB Business Overview & Revenue Model

Company Description

Hexagon AB (HEXA.B) is a global leader in digital reality solutions, providing advanced technology for geospatial and industrial applications. The company operates through several business segments, including Geospatial, Industrial, and Manufacturing Intelligence. Core products and services encompass software, sensors, and autonomous solutions that enable customers to capture, analyze, and visualize data in real-time, enhancing productivity and decision-making across various industries such as construction, agriculture, and transportation.

How the Company Makes Money

Hexagon AB generates revenue primarily through the sale of software solutions, sensors, and services. The company's revenue model is multifaceted, with key revenue streams including software licensing, subscription services, and hardware sales. Additionally, Hexagon benefits from maintenance contracts and professional services that provide ongoing support and customization for clients. Significant partnerships with technology firms and industry leaders enhance its market reach and innovation capabilities, while a strong focus on research and development ensures the continuous evolution of its product offerings, contributing to sustained earnings growth.

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 the company's financial position remains 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	5.44B	5.40B	5.44B	5.16B	4.34B	3.76B
Gross Profit	3.64B	3.61B	3.54B	3.36B	2.80B	2.37B
EBITDA	1.95B	2.01B	1.78B	1.75B	1.58B	1.32B
Net Income	941.90M	1.02B	858.90M	1.01B	801.60M	618.10M
Balance Sheet
Total Assets	17.07B	17.85B	16.88B	16.48B	14.10B	10.70B
Cash, Cash Equivalents and Short-Term Investments	575.50M	663.80M	547.10M	486.30M	472.10M	397.40M
Total Debt	4.40B	3.83B	4.08B	3.87B	2.94B	2.65B
Total Liabilities	7.03B	6.65B	6.84B	6.61B	5.33B	4.75B
Stockholders Equity	10.01B	11.16B	10.01B	9.83B	8.73B	5.93B
Cash Flow
Free Cash Flow	1.01B	955.90M	743.80M	763.30M	898.70M	909.90M
Operating Cash Flow	1.64B	1.59B	1.37B	1.33B	1.32B	1.30B
Investing Cash Flow	-1.30B	-710.10M	-1.03B	-1.80B	-1.17B	-1.18B
Financing Cash Flow	-222.30M	-764.10M	-249.30M	493.30M	-86.50M	-188.70M

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 111.25 is above the 20-day moving average (MA) of 109.56, above the 50-day MA of 108.09, and above the 200-day MA of 105.61, indicating a bullish trend. The MACD of 2.64 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 86.08 is Negative, 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	78 Outperform	kr311.39B	29.67	9.27%	1.41%	-1.88%	8.49%
NOTE	73 Outperform	5.36B	20.55	16.84%	3.84%	-8.71%	-9.38%
HANZA	68 Neutral	4.93B	29.30	9.57%	0.75%	16.37%	11.35%
NCAB	64 Neutral	9.72B	52.91	13.19%	―	-3.96%	-46.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hexagon AB Corporate Events

Hexagon AB Reports Organic Growth and Strong Cash Conversion in Q2 2025

Hexagon AB reported a return to organic growth with a 3% increase in organic revenue for the second quarter of 2025, despite geopolitical uncertainties affecting sales cycles. The company achieved excellent cash conversion of 104% and maintained gross margins, although a significant negative currency effect impacted its EBIT1 margin. CEO Anders Svensson highlighted the need to accelerate organic growth and adjust the cost base, with a cost improvement program in development to be implemented soon.

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 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.