Hexpol AB (HPOL.B) AI Stock Analysis

• Market Cap: kr29.69B
• Dividend Yield: 4.87%
• Average Volume (3M): 465.38K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.97
• Revenue Growth: -4.11%
• EPS Growth: -17.57%
• Country: SE
• Employees: 4,945
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.35
• Shares Outstanding: 329,671,230
• 10 Day Avg. Volume: 393,440
• 30 Day Avg. Volume: 465,383
• PEG Ratio: -1.33
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 16.97
• 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: kr90.00
• Price Target Upside: 4.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: kr95.00 ▲(10.02% Upside)

Hexpol AB's strong financial performance and attractive valuation are the primary strengths, suggesting a stable investment. However, technical indicators show potential resistance, which slightly tempers the overall score.

Positive Factors

Business Model Strength

Hexpol's business model, based on long-term contracts and relationships with key customers, ensures stable revenue streams and enhances profitability through economies of scale.

Cash Generation Ability

Improved cash generation supports financial flexibility, enabling Hexpol to invest in growth opportunities and withstand economic fluctuations.

Balance Sheet Health

A robust balance sheet with moderate leverage and solid return on equity indicates financial stability and effective capital management.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests potential market challenges or competitive pressures, which could impact long-term expansion and profitability.

Margin Pressure

Declining net profit margins may indicate rising costs or pricing pressures, potentially affecting future profitability and competitive positioning.

Earnings Decline

A significant decline in EPS growth reflects challenges in maintaining earnings momentum, which could affect investor confidence and future growth prospects.

Hexpol AB Business Overview & Revenue Model

Company Description

Hexpol AB (HPOL.B) is a leading global provider of advanced polymer compounds and thermoplastic elastomers, serving a diverse range of industries including automotive, healthcare, and consumer goods. The company operates through multiple segments, including Hexpol Compounding, which focuses on the development and production of rubber and thermoplastic compounds, and Hexpol TPE, which specializes in thermoplastic elastomers. Hexpol's commitment to innovation and sustainability is evident in its extensive product portfolio designed to meet the evolving needs of its customers across various sectors.

How the Company Makes Money

Hexpol AB generates revenue primarily through the sale of its polymer compounds and thermoplastic elastomers to various industries. The company's revenue model is based on long-term contracts and relationships with key customers, which include major players in the automotive and healthcare sectors. Key revenue streams include the sale of customized solutions and specialty products, which often command higher margins due to their tailored nature. Additionally, Hexpol benefits from economies of scale in production and distribution, which enhance profitability. Strategic partnerships with leading manufacturers and ongoing investments in research and development further contribute to its earnings by enabling Hexpol to offer innovative products that meet specific market demands.

Hexpol AB Financial Statement Overview

Summary

Hexpol AB demonstrates a stable financial position with strong equity and manageable debt levels. However, declining profitability margins and negative revenue growth indicate potential challenges in maintaining growth and profitability. Cash flow generation needs improvement to support future investments and operational needs.

Income Statement

Hexpol AB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 21.07%, indicating efficient production. However, the net profit margin has declined to 10.23% from 11.45% in 2023, reflecting reduced profitability. Revenue growth is negative at -2.23%, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, which is manageable and indicates a conservative leverage approach. The return on equity is strong at 13.83%, showcasing effective use of equity to generate profits. The equity ratio stands at 56.69%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some concerns with a negative free cash flow growth rate of -4.67% TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is 1.19, suggesting adequate cash flow generation relative to net income. However, the free cash flow to net income ratio is slightly below optimal at 0.95, indicating less cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.76B	20.44B	22.05B	22.24B	16.00B	13.42B
Gross Profit	4.13B	4.37B	4.86B	4.34B	3.47B	2.93B
EBITDA	3.28B	3.83B	4.13B	3.84B	3.54B	2.35B
Net Income	1.96B	2.22B	2.52B	2.48B	2.36B	1.41B
Balance Sheet
Total Assets	23.92B	24.88B	22.51B	23.55B	17.96B	15.07B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.23B	1.10B	1.54B	1.32B	1.20B
Total Debt	5.10B	3.47B	2.68B	4.39B	2.22B	2.80B
Total Liabilities	9.83B	8.94B	7.93B	9.79B	6.31B	5.94B
Stockholders Equity	14.09B	15.95B	14.58B	13.77B	11.65B	9.13B
Cash Flow
Free Cash Flow	2.43B	2.09B	2.84B	1.93B	2.10B	2.12B
Operating Cash Flow	2.54B	2.70B	3.52B	2.59B	2.41B	2.38B
Investing Cash Flow	-2.44B	-1.50B	-895.00M	-2.17B	-862.00M	-665.00M
Financing Cash Flow	397.00M	-1.28B	-2.95B	104.00M	-1.37B	-1.98B

Hexpol AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HPOL.B, the sentiment is Positive. The current price of 86.35 is above the 20-day moving average (MA) of 83.65, above the 50-day MA of 83.95, and below the 200-day MA of 87.26, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 93.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HPOL.B.

Hexpol AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPOL.B	74 Outperform	kr29.69B	15.17	13.67%	4.87%	-4.11%	-17.57%
GRNG	71 Outperform	kr14.78B	15.61	9.93%	2.32%	22.58%	0.31%
BILL	70 Outperform	kr21.65B	17.88	4.43%	3.75%	2.55%	98.53%
SSAB.B	65 Neutral	kr57.66B	11.58	7.29%	3.97%	-8.04%	-37.18%
SCA.A	65 Neutral	kr85.80B	24.17	―	2.44%	6.10%	-3.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TRIBO.B	38 Underperform	€34.55M	―	-6.99%	―	7.63%	91.37%

Hexpol AB Corporate Events

HEXPOL Reports Resilient Cash Flow Amid Geopolitical Challenges

HEXPOL reported a decrease in sales and earnings for the third quarter of 2025, impacted by currency effects and geopolitical uncertainties. Despite these challenges, the company maintained strong cash flow, with stable demand in Europe and the Engineered Products sector. The North American market experienced weaker demand, particularly in the automotive industry, but this was partially offset by growth in building and construction. HEXPOL continues to focus on sustainability, aiming to significantly reduce carbon emissions by the end of the year, and is set to present its strategic focus on growth and efficiency at an upcoming capital markets day.

The most recent analyst rating on ($SE:HPOL.B) stock is a Hold with a SEK90.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.

HEXPOL to Present Q3 2025 Interim Report on October 24

HEXPOL announced it will release its third-quarter 2025 interim report on October 24, with a presentation by the company’s President and CEO, Klas Dahlberg, and Deputy CEO and CFO, Peter Rosén. The report will be accessible via webcast and teleconference, allowing stakeholders to engage and ask questions, reflecting HEXPOL’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on ($SE:HPOL.B) stock is a Buy with a SEK95.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.

Kenneth Bloom Appointed Interim President of HEXPOL Compounding Americas

HEXPOL AB has appointed Kenneth Bloom as the interim President of HEXPOL Compounding Americas, effective September 19, 2025, following the departure of Gary Moore. Bloom, who previously held the same position from 2020 to 2022, brings over 20 years of experience in the polymer industry and is expected to lead the company through its next phase of growth and value creation until a permanent successor is found.

The most recent analyst rating on ($SE:HPOL.B) stock is a Buy with a SEK95.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.

HEXPOL Announces Capital Markets Day for Strategic Insights

HEXPOL has announced its upcoming Capital Markets Day on November 4, 2025, inviting analysts, investors, and media to join either in Stockholm or online. The event will provide updates on the company’s strategic direction, operational development, and financial goals, offering insights into its business and future growth opportunities. This initiative aims to strengthen HEXPOL’s industry positioning and engage stakeholders by sharing detailed presentations and facilitating Q&A sessions.

The most recent analyst rating on ($SE:HPOL.B) stock is a Buy with a SEK95.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.