Hexagon AB (HEXA.B) AI Stock Analysis

• Market Cap: kr267.15B
• Dividend Yield: 1.46%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 43.8
• Beta (1Y): 1.34
• Revenue Growth: -0.93%
• EPS Growth: -34.25%
• Country: SE
• Employees: 25,091
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.26
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 2,221,020
• 30 Day Avg. Volume: 3,200,334
• PEG Ratio: -1.11
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 26.47
• 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: kr105.00
• Price Target Upside: 5.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): kr5.49B

• Rating: 60 Neutral
• Price Target: kr112.00 ▲(12.54% Upside)
• Action: Downgraded Date: 12/19/25
• Date: Action: Downgraded 12/19/25

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

High gross and EBITDA margins

Consistently high gross and EBITDA margins indicate durable pricing power and efficient cost structure across Hexagon's product mix. These structural margins support sustained operating cash flow, enable ongoing R&D and product investment, and provide resilience through industry cycles, underpinning long-term profitability.

Diversified revenue streams

A mix of software licensing, hardware sensors, and recurring services creates multiple revenue engines. High-margin software and maintenance contracts deliver sticky recurring income while hardware and services broaden end-market exposure, reducing dependence on any single sector and improving long-term revenue stability.

Manageable leverage and sizable equity

Moderate debt-to-equity and a substantial equity base give Hexagon financial flexibility to fund strategic initiatives and inorganic growth without immediate refinancing stress. This balance-sheet position supports continued investment in acquisitions, R&D, and product development over the medium term.

Negative Factors

Material revenue and earnings decline

A material step-down in revenue and net margin signals weakening demand or margin pressure that can persistently reduce scale economics. If the trend continues, it erodes free cash flow, impairs reinvestment capacity, and may require structural cost or portfolio adjustments to restore long-term growth and profitability.

Weaker cash conversion

A sharp drop in free cash flow and weaker conversion relative to net income reduces internal funding for capex, acquisitions, and shareholder returns. Over time, persistently lower FCF increases reliance on external financing and constrains strategic flexibility, heightening execution and financing risk.

Falling ROE and equity erosion

Declining ROE and a shrinking equity base with rising debt indicate reduced efficiency in converting capital into profits. Persistently low returns can limit the firm's ability to attract capital, fund growth from retained earnings, and may pressure management to pursue higher-risk investments to restore returns.

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 demonstrates strong revenue growth and efficient cash flow management, but faces challenges in profitability and operational efficiency. The balance sheet is solid with moderate leverage, but the low return on equity indicates room for improvement in generating returns for shareholders.

Income Statement

Hexagon AB's income statement reflects strong revenue growth, particularly in the TTM period with a remarkable 242.49% increase. However, the net profit margin is relatively low at 1.77% in the TTM, indicating challenges in converting revenue into profit. The gross profit margin remains robust, showcasing efficient cost management. EBIT and EBITDA margins have decreased in the TTM, suggesting potential operational inefficiencies or increased costs.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.43 in the TTM, indicating moderate leverage. The return on equity is low at 0.93%, reflecting limited profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Hexagon AB's cash flow statement highlights impressive free cash flow growth of 319.65% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.13, suggesting potential discrepancies between reported earnings and cash flow. However, the free cash flow to net income ratio is high, reflecting efficient cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.42B	5.40B	5.44B	5.16B	4.34B
Gross Profit	3.66B	3.61B	3.54B	3.36B	2.80B
EBITDA	1.73B	2.01B	1.78B	1.75B	1.58B
Net Income	617.40M	1.02B	858.90M	1.01B	801.60M
Balance Sheet
Total Assets	17.11B	17.85B	16.88B	16.48B	14.10B
Cash, Cash Equivalents and Short-Term Investments	758.20M	663.80M	547.10M	486.30M	472.10M
Total Debt	4.11B	3.83B	4.08B	3.87B	2.94B
Total Liabilities	6.85B	6.65B	6.84B	6.61B	5.33B
Stockholders Equity	10.22B	11.16B	10.01B	9.83B	8.73B
Cash Flow
Free Cash Flow	1.02B	955.90M	743.80M	763.30M	898.70M
Operating Cash Flow	1.62B	1.59B	1.37B	1.33B	1.32B
Investing Cash Flow	-1.26B	-710.10M	-1.03B	-1.80B	-1.17B
Financing Cash Flow	-177.40M	-764.10M	-249.30M	493.30M	-86.50M

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 99.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 99.52 is above the 20-day moving average (MA) of 98.00, below the 50-day MA of 102.12, and below the 200-day MA of 105.56, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	65 Neutral	kr10.46B	23.56	―	0.65%	18.96%	48.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HEXA.B	60 Neutral	kr267.15B	43.82	6.71%	1.46%	-0.93%	-34.25%
NCAB	57 Neutral	kr9.87B	43.38	―	―	0.26%	-30.60%
NOTE	53 Neutral	kr5.52B	18.44	17.21%	3.91%	-2.98%	2.44%

Hexagon AB Corporate Events

Hexagon Delivers Solid Q4 2025, Tightens Portfolio and Pushes Cost-Saving Drive

Hexagon reported a solid fourth quarter of 2025 with 3% organic growth in operating net sales to EUR 1.43 billion and a stable gross margin of 67.5%, though adjusted EBIT and earnings per share declined year-on-year due largely to currency effects and margin pressure. Cash conversion was a strong 121%, recurring revenue grew 3% organically, the Board proposed an unchanged dividend of EUR 0.14 per share, and the company advanced a restructuring programme targeting EUR 110 million in savings by the end of 2026 while reshaping its portfolio through acquisitions in Manufacturing Intelligence and Autonomous Solutions, the planned sale of its Design & Engineering business, and preparations for a potential separation of Octave and a CFO transition in 2026.

The most recent analyst rating on ($SE:HEXA.B) stock is a Hold with a SEK105.00 price target. To see the full list of analyst forecasts on Hexagon AB stock, see the SE:HEXA.B Stock Forecast page.

Hexagon Names Enrique Patrickson as New CFO, Reshapes Senior Leadership Roles

Hexagon AB has appointed Enrique Patrickson as its new Chief Financial Officer, with a latest start date of July 2026, succeeding interim CFO Norbert Hanke. Patrickson, currently an Operating Partner at private equity firm Triton and formerly CFO & Head of Strategy at streaming service Viaplay, brings extensive international finance, strategy and corporate finance experience from roles at Electrolux, Assa Abloy and PwC, and will be based in London. Upon Patrickson’s arrival, Hanke will transition to Group Executive Vice President with responsibility for people and culture, ventures and other strategic projects, a move that Hexagon’s CEO Anders Svensson says is intended to support the group’s next phase of profitable growth and strengthen its executive management structure.

The most recent analyst rating on ($SE:HEXA.B) stock is a Hold with a SEK105.00 price target. To see the full list of analyst forecasts on Hexagon AB stock, see the SE:HEXA.B Stock Forecast page.