Hexpol AB (HPOL.B) AI Stock Analysis

• Market Cap: kr29.41B
• Dividend Yield: 4.93%
• Average Volume (3M): 424.34K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.98
• Revenue Growth: -4.96%
• EPS Growth: -17.47%
• Country: SE
• Employees: 4,945
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.56
• Shares Outstanding: 329,671,230
• 10 Day Avg. Volume: 440,500
• 30 Day Avg. Volume: 424,344
• 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: kr98.25
• Price Target Upside: 14.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: kr91.00 ▲(6.31% Upside)

Hexpol AB's overall stock score is driven by its stable financial position and attractive valuation, offering a strong dividend yield. However, the technical analysis indicates bearish momentum, which poses a risk to short-term price performance. The lack of recent earnings call data and corporate events means these factors do not influence the score.

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 compounded materials to various industries, including automotive, consumer goods, and healthcare. The company's key revenue streams include the manufacturing and distribution of custom polymer compounds, which are tailored to specific client needs. Hexpol's extensive global footprint enables it to secure significant contracts with major manufacturers, contributing to stable and growing revenues. Additionally, strategic partnerships with leading companies in different sectors enhance its market position and drive earnings. The company's focus on innovation and sustainability also allows it to tap into emerging markets and demands, further bolstering its income.

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	20.05B	20.44B	22.05B	22.24B	16.00B	13.42B
Gross Profit	4.22B	4.37B	4.86B	4.34B	3.47B	2.93B
EBITDA	3.25B	3.83B	4.13B	3.84B	3.54B	2.38B
Net Income	2.05B	2.22B	2.52B	2.48B	2.36B	1.41B
Balance Sheet
Total Assets	24.34B	24.88B	22.51B	23.55B	17.96B	15.07B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.23B	1.10B	1.54B	1.32B	1.20B
Total Debt	5.60B	3.47B	2.68B	4.39B	2.22B	2.80B
Total Liabilities	10.54B	8.94B	7.93B	9.79B	6.31B	5.94B
Stockholders Equity	13.80B	15.95B	14.58B	13.77B	11.65B	9.13B
Cash Flow
Free Cash Flow	2.31B	2.09B	2.84B	1.93B	2.10B	2.12B
Operating Cash Flow	2.44B	2.70B	3.52B	2.59B	2.41B	2.38B
Investing Cash Flow	-2.47B	-1.50B	-895.00M	-2.17B	-862.00M	-665.00M
Financing Cash Flow	228.00M	-1.28B	-2.95B	104.00M	-1.37B	-1.98B

Hexpol AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 85.60
• 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:HPOL.B, the sentiment is Neutral. The current price of 85.6 is above the 20-day moving average (MA) of 84.00, below the 50-day MA of 87.66, and below the 200-day MA of 92.18, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	kr29.41B	14.34	14.46%	4.93%	-4.96%	-17.47%
Sector *	61 Neutral	$10.31B	6.29	0.74%	2.95%	3.36%	-36.41%
0GWS	―	kr23.05B	12.59	6.73%	―	―	―
0R9X	―	kr14.64B	14.79	10.50%	―	―	―
0MHZ	―	kr55.63B	12.25	6.67%	―	―	―
2WV	―	€4.29M	―	-30.99%	―	―	―
SCA1	―	€8.35B	―		―	―	―

Hexpol AB Corporate Events

HEXPOL Demonstrates Resilience Amid Global Uncertainties in 2025 Half-Year Report

HEXPOL’s half-year report for 2025 highlights resilience amidst global uncertainties, with a focus on European operations and growth in the Engineered Products segment. Despite challenges in North America due to trade barriers and currency effects, the company maintains solid cash flow and stable raw material prices. The acquisition of Kabkom in Turkey has positively impacted demand, particularly in the building and construction sectors. HEXPOL continues to pursue its acquisition strategy and sustainability goals, aiming for a significant reduction in carbon emissions and increased use of recycled materials. The company plans to present more detailed strategies at its upcoming capital markets day.

The most recent analyst rating on ($SE:HPOL.B) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.

HEXPOL AB to Release Q2 2025 Interim Report

HEXPOL AB announced it will release its Q2 2025 Interim Report on July 18, 2025, 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 the company’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on ($SE:HPOL.B) stock is a Hold with a SEK130.00 price target. To see the full list of analyst forecasts on Hexpol AB stock, see the SE:HPOL.B Stock Forecast page.