Assa Abloy (ASAZY) AI Stock Analysis

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Assa Abloy

(OTC:ASAZY)

73Outperform

Assa Abloy is performing well financially, with strong revenue growth, profitability, and a solid balance sheet. The earnings call reflects positive momentum from acquisitions but notes challenges in specific markets. The technical indicators are mixed, with potential caution due to overbought signals. Valuation metrics suggest moderate pricing, with a lower dividend yield. Overall, the company demonstrates strength but faces some market challenges.

Assa Abloy (ASAZY) vs. S&P 500 (SPY)

Market Cap

$35.58B

Dividend Yield1.02%

Average Volume (3M)174.63K

Price to Earnings (P/E)25.8

Beta (1Y)0.86

Revenue Growth6.17%

EPS Growth1.51%

CountryUS

Employees64,460

SectorIndustrials

Sector Strength89

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)0.17

Shares Outstanding2,110,100,000

10 Day Avg. Volume0

30 Day Avg. Volume174,631

Financial Highlights & Ratios

PEG Ratio11.19

Price to Book (P/B)3.43

Price to Sales (P/S)0.00

P/FCF Ratio18.53

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Assa Abloy Business Overview & Revenue Model

Company DescriptionASSA ABLOY AB (publ) provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania. The company offers mechanical and electromechanical locks, digital door locks, cylinders, door fittings, security doors, door frames, access control devices, and fire doors, as well as hardware products. It also provides identity solutions, including identity and access management, biometrics, authenticity and brand protection products, contactless RFID tags and transponders, and government IDs to companies, and government and state institutions, as well as healthcare, education, and financial industries; and secure access solutions for hotels, cruise ships, student accommodations, and elderly care facilities. In addition, the company offers entrance automation products, services, and components, such as automatic swing, sliding, and revolving doors; industrial doors; garage doors; high-performance doors; docking solutions; hangar doors; gate automation products; components for overhead sectional doors and sensors; and high security fencings and gates. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors, wholesalers, and home improvement stores. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

How the Company Makes MoneyAssa Abloy makes money through the sale of its diverse range of security and access solutions. The company's revenue model primarily revolves around the direct sales of its hardware products, such as locks, doors, and access control systems, to various verticals including commercial, institutional, and residential markets. In addition to product sales, Assa Abloy generates revenue from services related to installation, maintenance, and support of its security systems. The company also benefits from strategic acquisitions and partnerships that enhance its product offerings and expand its market reach, contributing significantly to its earnings. Furthermore, Assa Abloy invests in research and development to innovate and tailor solutions that meet evolving market demands, thereby sustaining its revenue growth.

Assa Abloy Financial Statement Overview

Summary

Assa Abloy demonstrates strong financial performance with solid revenue and profitability growth, efficient cost management, and robust cash flow generation. The balance sheet is stable with manageable leverage and a strong capital structure.

Income Statement

Very Positive

Assa Abloy demonstrates a strong financial performance with a consistent increase in revenue and profitability. Gross profit margin improved to 41.76%, reflecting efficient cost management. The net profit margin is robust at 10.41%, indicating stable profitability. Revenue growth rate of 6.70% shows healthy expansion. EBIT and EBITDA margins strengthen further to 16.16% and 19.87%, respectively, showcasing operational efficiency.

Balance Sheet

Positive

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.69, suggesting manageable leverage. ROE is impressive at 14.61%, reflecting efficient use of equity. The equity ratio is substantial at 47.91%, indicating a strong capital structure. The balance sheet highlights a good balance between growth and financial stability.

Cash Flow

Positive

Cash flow analysis reveals strong operational cash flow with an operating cash flow to net income ratio of 1.37, highlighting effective cash generation. Free cash flow to net income ratio is stable at 1.24, indicating healthy cash surplus. Free cash flow growth rate of 3.61% reflects ongoing investments and expansion capacity.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
105.61B	150.16B	140.72B	120.79B	95.01B	87.65B
	Gross Profit
41.72B	62.73B	56.50B	47.93B	37.78B	34.31B
	EBIT
15.81B	24.27B	21.79B	18.53B	14.18B	12.46B
	EBITDA
19.93B	29.85B	26.95B	22.53B	18.02B	16.20B
	Net Income Common Stockholders
11.45B	15.64B	13.63B	13.29B	10.90B	9.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.50B	4.50B	1.70B	3.42B	4.33B	2.80B
	Total Assets
223.60B	223.60B	196.35B	154.56B	129.97B	117.43B
	Total Debt
73.50B	73.50B	65.19B	33.73B	28.75B	29.46B
	Net Debt
69.00B	69.00B	63.73B	30.32B	24.43B	26.70B
	Total Liabilities
116.52B	116.52B	104.71B	68.54B	60.38B	58.55B
	Stockholders Equity
107.07B	107.07B	91.63B	86.01B	69.58B	58.87B
Cash Flow		Free Cash Flow
8.78B	19.33B	18.66B	12.36B	10.74B	11.85B
	Operating Cash Flow
10.56B	21.39B	21.29B	14.36B	12.46B	13.66B
	Investing Cash Flow
-5.50B	-13.93B	-47.90B	-10.56B	-3.09B	-6.74B
	Financing Cash Flow
-6.93B	-4.45B	24.73B	-4.70B	-7.81B	-4.56B

Assa Abloy Technical Analysis

Technical Analysis Sentiment

Positive

Last Price15.99

Price Trends

50DMA

15.00

Positive

100DMA

14.99

Positive

200DMA

15.24

Positive

Market Momentum

MACD

0.35

Negative

RSI

65.80

Neutral

STOCH

89.58

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAZY, the sentiment is Positive. The current price of 15.99 is above the 20-day moving average (MA) of 15.21, above the 50-day MA of 15.00, and above the 200-day MA of 15.24, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 65.80 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAZY.

Assa Abloy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSA	79 Outperform	$6.23B	21.88	26.22%	1.29%	0.75%	7.20%
ALLE	78 Outperform	$12.14B	19.81	42.05%	1.36%	5.48%	16.27%
BRC	74 Outperform	$3.42B	18.85	17.80%	1.25%	8.62%	3.59%
ASAZY	73 Outperform	$35.58B	25.80	14.16%	1.02%	6.17%	1.51%
ADT	72 Outperform	$7.19B	14.49	16.26%	2.60%	-5.44%	-16.05%
BCO	68 Neutral	$3.69B	23.74	54.50%	1.10%	1.97%	41.88%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%

* Industrials Sector Average

Performance Comparison

ASAZY

Assa Abloy

15.98

1.70

11.90%

BRC

Brady

71.52

11.79

19.74%

BCO

Brink's Company

87.87

-8.44

-8.76%

MSA

MSA Safety

159.49

-27.35

-14.64%

ALLE

Allegion

145.64

23.06

18.81%

ADT

Adt

8.59

1.62

23.24%

Assa Abloy Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 11.12%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced performance with strong top line growth and successful acquisition activities providing positive momentum, especially in Global Tech. However, challenges in Greater China, the North American residential market decline, and tariff impacts present significant headwinds.

Q1-2025 Updates

Positive Updates

Strong Overall Top Line Growth

ASSA ABLOY reported an 8% increase in top line growth with 2% organic growth, 5% net acquisition growth, and 1% currency impact.

Positive Momentum in Global Tech

Global Tech segment saw an organic sales growth of 8% with strong sales growth across most verticals and an underlying strong operating margin.

Successful Acquisition Activity

Six acquisitions were completed in the quarter, adding an annualized sales of 3.6 billion SEK, including InVue and Uhlmann & Zacher.

Launch of Insight Mobile App

Entrance Systems launched the Insight Mobile App, enabling digital remote control and access management, enhancing product offerings.

Sweden and New Zealand Residential Market Recovery

Signs of recovery in the residential market in Sweden and New Zealand due to interest rate cuts.

Negative Updates

Challenges in Greater China

Significant sales decline with higher double-digit negative growth, impacting the Asia Pacific region by 6%.

North American Residential Market Decline

Mid-single digit negative growth in the North American residential market, affected by high interest rates and economic uncertainty.

Dilution Impact on Operating Margin

Operating margin affected by 140 basis points due to one-off acquisition and divestment-related costs.

Impact of Tariffs and Economic Uncertainty

Increased inventory levels due to tariff uncertainty, impacting cash flow and presenting ongoing challenges.

Company Guidance

In the recent call discussing ASSA ABLOY's Q1 report for fiscal year 2025, the company reported an 8% increase in sales with a 2% organic growth, 5% growth from acquisitions, and a 1% currency impact. The operating margin was noted at 14.9%, despite a 140 basis point dilution largely due to acquisition and divestment-related costs. The company achieved a cash flow of 2.4 billion SEK with a 51% cash conversion rate. A key highlight was the completion of six acquisitions, contributing to an annualized sales increase of 3.6 billion SEK. Challenges were noted in the residential sector across various regions, particularly due to high interest rates and economic uncertainties, whereas commercial sectors showed stronger performance, especially in North America and Europe. The launch of the MFP10 program was also highlighted, aiming to generate 1 billion SEK in savings by the end of 2027. Earnings per share increased by 3%, and net debt remained steady with a debt-to-EBITDA ratio of 2.4. Despite the challenges in the market, the company remains confident in navigating through local teams and anticipates positive outcomes from its decentralized organizational structure.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.