Hexpol AB (HPOL.B) AI Stock Analysis

• Market Cap: kr25.04B
• Dividend Yield: 4.87%
• Average Volume (3M): 465.38K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.84
• Revenue Growth: -4.11%
• EPS Growth: -17.57%
• Country: SE
• Employees: 4,945
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.05
• Shares Outstanding: 329,671,230
• 10 Day Avg. Volume: 393,440
• 30 Day Avg. Volume: 465,383
• PEG Ratio: -1.24
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 0.00
• 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: kr85.00
• Price Target Upside: 16.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr77.00 ▲(5.91% Upside)

The score is mainly driven by mixed fundamentals: solid margins and a conservative balance sheet are offset by multi-year revenue declines and a significant 2025 free-cash-flow setback. Technicals further weigh on the score due to a strong downtrend and bearish momentum despite oversold readings. Valuation helps, supported by a moderate P/E and a high dividend yield.

Positive Factors

Healthy Profit Margins

Sustained mid-teens EBIT and double-digit net margins indicate durable pricing power and cost control in specialty polymers. These margins provide a structural buffer for reinvestment, R&D and dividend capacity even if volumes soften, supporting long-term competitiveness.

Conservative Capital Structure

A debt-to-equity near 0.31 gives the company flexibility to fund capex, acquisitions or weather cyclical downturns without acute refinancing pressure. Conservative leverage supports investment in tooling and R&D crucial for industrial customers and long-cycle contracts.

Diversified End Markets & Product Breadth

Exposure across automotive, healthcare and consumer sectors plus a broad polymer/TPE product set reduces dependence on a single demand cycle. This diversification and tailored specialty products support more stable multi-year revenue streams and higher-margin customized sales.

Negative Factors

Multi-year Revenue Decline

Three consecutive years of top-line contraction point to structural demand or mix issues, which can erode operating leverage and make sustaining margins harder. Without a clear stabilization, long-term growth and investment returns could be impaired.

Severe 2025 Free Cash Flow Weakness

A collapse to zero reported free cash flow in 2025 breaks prior cash conversion trends and suggests heavy capex, working-capital strain or one-offs. Prolonged cash weakness would limit R&D, dividends and M&A flexibility, raising structural execution risk over the next 2–6 months.

Rising Debt Trend vs Prior Years

Although leverage is moderate today, an observable uptick in debt and a lower equity base versus 2024 signals a weakening capital position. If the trend continues it could increase interest and refinancing exposure, reducing resilience to industry cyclicality.

Hexpol AB Business Overview & Revenue Model

Company Description

HEXPOL AB (publ) develops, manufactures, and sells various polymer compounds and engineered products in Sweden and internationally. It operates through two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Compounding business area offers rubber compounds, including elastomers, such as silicone and fluoro-carbon rubber; and thermoplastic elastomer and thermoplastic compounds for the automotive and engineering, construction, transportation, energy, oil and gas, consumer, and wire and cable industries, as well as manufacturers of medical technology. The HEXPOL Engineered Products business area provides gaskets for plate heat exchangers; and wheels for forklifts and material handling applications. The company was founded in 1893 and is headquartered in Malmö, Sweden.

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

Profitability remains solid (2025 net margin ~10.1%, EBIT margin ~14.4%) and leverage is conservative (debt-to-equity ~0.31), but fundamentals have weakened with three straight years of revenue contraction and a sharp 2025 free cash flow deterioration (reported at 0) that raises near-term cash durability concerns.

Income Statement

Profitability remains solid for a specialty chemicals business, with 2025 net margin around 10.1% and EBIT margin around 14.4%, though both are down versus 2023–2024. Revenue has been contracting for three straight years (2023–2025), and earnings have stepped down from 2023 highs, pointing to a softer demand/price environment or mix pressure. Overall: good underlying margins, but momentum has turned negative and needs stabilization.

Balance Sheet

Leverage looks conservative, with debt-to-equity around 0.31 in 2025 (still moderate despite rising from 2023–2024 levels), giving the company balance sheet flexibility. Returns on equity remain healthy (~13.9% in 2025), though below the stronger 2021–2023 range, consistent with the profit slowdown. Overall: financially sturdy capital structure, with a watch item on the recent uptick in debt and lower equity base versus 2024.

Cash Flow

Cash generation was strong historically (free cash flow broadly covering net income in 2020–2024), but 2025 is a clear outlier: free cash flow is reported at 0 with a -100% growth rate, while operating cash flow also declined to 2.32B from 2.70B in 2024. This suggests a year of heavy investment, working-capital drag, or one-time cash uses; regardless, it meaningfully weakens cash conversion in the latest period. Overall: good track record, but the most recent year raises questions about near-term cash durability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.32B	20.44B	22.05B	22.24B	16.00B
Gross Profit	4.06B	4.37B	4.86B	4.34B	3.47B
EBITDA	3.36B	3.83B	4.13B	3.84B	3.54B
Net Income	1.94B	2.22B	2.52B	2.48B	2.36B
Balance Sheet
Total Assets	22.96B	24.88B	22.51B	23.55B	17.96B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.23B	1.10B	1.54B	1.32B
Total Debt	4.33B	3.47B	2.68B	4.39B	2.22B
Total Liabilities	8.94B	8.94B	7.93B	9.79B	6.31B
Stockholders Equity	14.02B	15.95B	14.58B	13.77B	11.65B
Cash Flow
Free Cash Flow	0.00	2.09B	2.84B	1.93B	2.10B
Operating Cash Flow	2.32B	2.70B	3.52B	2.59B	2.41B
Investing Cash Flow	-1.52B	-1.50B	-895.00M	-2.17B	-862.00M
Financing Cash Flow	-588.00M	-1.28B	-2.95B	104.00M	-1.37B

Hexpol AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HPOL.B, the sentiment is Negative. The current price of 72.7 is below the 20-day moving average (MA) of 84.39, below the 50-day MA of 85.09, and below the 200-day MA of 85.68, indicating a bearish trend. The MACD of -2.16 indicates Positive momentum. The RSI at 20.27 is Positive, neither overbought nor oversold. The STOCH value of 17.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HPOL.B.

Hexpol AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSAB.B	65 Neutral	kr73.50B	14.97	7.29%	3.80%	-8.04%	-37.18%
HPOL.B	62 Neutral	kr25.04B	12.89	13.67%	4.87%	-4.11%	-17.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GRNG	60 Neutral	kr15.91B	15.64	9.93%	2.29%	22.58%	0.31%
SCA.A	57 Neutral	kr78.34B	24.41	―	2.49%	6.10%	-3.62%
BILL	53 Neutral	kr17.93B	25.22	4.43%	3.81%	2.55%	98.53%

Hexpol AB Corporate Events

Hexpol Holds Dividend as 2025 Profit Slips but Strategy and Volumes Advance

Hexpol reported lower sales and earnings for full-year 2025 and the fourth quarter amid currency headwinds and a tough market, but maintained profitability, strong cash flow and an unchanged dividend proposal of 4.20 SEK per share. The group’s 2025 sales fell to 19,324 MSEK from 20,437 MSEK, with adjusted EBIT down to 2,791 MSEK and margins slightly compressed, while fourth-quarter sales declined 9% to 4,254 MSEK, largely due to negative currency and mix effects, even as volumes rose in Europe and North America and in segments such as wire and cable, building and construction and medical. Management emphasized that its strategic 2030 agenda is progressing, including new financial targets, automation investments like the Mixing 5.0 initiative, initial wins in captive conversion in North America and a strengthened balance sheet to support future M&A. Hexpol also reported it has surpassed its CO2 reduction goal, achieving an 80% cut versus a 75% target, and, despite ongoing geopolitical and macro uncertainty and no near-term broad market improvement in sight, the company is positioning itself to capitalize on growth opportunities through both organic initiatives and acquisitions while continuing efficiency measures.

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 Sets 29 January Date for 2025 Year-End Report and Investor Presentation

HEXPOL will publish its year-end report for 2025 on 29 January at around 13:00 CET, followed by a webcast and teleconference presentation at 14:00 CET led by President and CEO Klas Dahlberg and deputy CEO and CFO Peter Rosén. The company is making the report and accompanying investor-relations presentation available online, underscoring its focus on transparent communication with capital markets and stakeholders as it reports on performance in a year that will inform investors’ views on its global polymers operations and market positioning.

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 Sets Ambitious 2030 Growth and Value Creation Targets

HEXPOL AB has announced its strategic priorities and financial targets for 2030, aiming to accelerate growth and value creation. The company plans to achieve a compound annual growth rate of over 10% in revenues and maintain an EBIT margin of 14–16% by focusing on organic growth, increasing M&A activities, particularly in Thermoplastics, and driving operational excellence. HEXPOL will also separate its reporting segments to better reflect its strategic focus areas, enhancing its market positioning and operational transparency.

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.