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Hexagon AB (SE:HEXA.B)
:HEXA.B
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Hexagon AB (HEXA.B) AI Stock Analysis

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SE:HEXA.B

Hexagon AB

(LSE:HEXA.B)

Rating:78Outperform
Price Target:
kr111.00
▲(8.24% Upside)
Hexagon AB's overall stock score is driven primarily by its strong financial performance, which is supported by robust revenue growth and solid profitability margins. Technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data did not impact the score.

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

Hexagon AB Business Overview & Revenue Model

Company DescriptionHexagon 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 MoneyHexagon 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.44B5.40B5.44B5.16B4.34B3.76B
Gross Profit3.64B3.61B3.54B3.36B2.80B2.37B
EBITDA1.95B2.01B1.78B1.75B1.58B1.32B
Net Income941.90M1.02B858.90M1.01B801.60M618.10M
Balance Sheet
Total Assets17.07B17.85B16.88B16.48B14.10B10.70B
Cash, Cash Equivalents and Short-Term Investments575.50M663.80M547.10M486.30M472.10M397.40M
Total Debt4.40B3.83B4.08B3.87B2.94B2.65B
Total Liabilities7.03B6.65B6.84B6.61B5.33B4.75B
Stockholders Equity10.01B11.16B10.01B9.83B8.73B5.93B
Cash Flow
Free Cash Flow1.01B955.90M743.80M763.30M898.70M909.90M
Operating Cash Flow1.64B1.59B1.37B1.33B1.32B1.30B
Investing Cash Flow-1.30B-710.10M-1.03B-1.80B-1.17B-1.18B
Financing Cash Flow-222.30M-764.10M-249.30M493.30M-86.50M-188.70M

Hexagon AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price102.55
Price Trends
50DMA
104.19
Positive
100DMA
99.06
Positive
200DMA
104.45
Positive
Market Momentum
MACD
0.04
Positive
RSI
60.02
Neutral
STOCH
42.92
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 102.55 is below the 20-day moving average (MA) of 106.74, below the 50-day MA of 104.19, and below the 200-day MA of 104.45, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 42.92 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
kr275.28B25.989.27%1.42%-1.88%8.49%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
€482.64M20.5316.64%
75
Outperform
kr5.18B30.01
0.71%16.37%11.35%
60
Neutral
kr8.74B48.41
2.50%-3.96%-46.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:HEXA.B
Hexagon AB
102.55
5.52
5.69%
DE:NQA
NOTE AB
16.76
6.09
57.08%
SE:HANZA
Hanza AB
112.60
51.06
82.97%
SE:NCAB
NCAB Group AB
47.86
-26.49
-35.63%

Hexagon AB Corporate Events

Hexagon AB Reports Organic Growth and Strong Cash Conversion in Q2 2025
Jul 25, 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
Jul 21, 2025

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.

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: Sep 03, 2025