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Assa Abloy
(OTC:ASAZY)
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Rating:77Outperform
Price Target:
$21.50
▲(15.28% Upside)
Action:Reiterated
Date:10/27/26
The score is driven primarily by strong financial performance (healthy revenue/profitability profile and solid free cash flow) and a very positive earnings update with supportive margin outlook. Technicals are constructive but look short-term stretched (high stochastic). Valuation is the main restraint given the mid-20s P/E and a modest dividend yield.
Positive Factors
Broad Revenue Growth and Margin Expansion
Record sales and EBIT growth, together with a 17.4% margin and nearly 50% operating leverage, indicate effective scale benefits and pricing discipline. Seven consecutive quarters of positive organic growth support the durability of earnings momentum over the coming quarters.
Negative Factors
Regional Market Weakness
Persistent weakness in Greater China and South Korea is a meaningful drag on a global portfolio, limiting consolidated growth and regional margin recovery. Continued housing and market pressure in these areas could offset stronger performance elsewhere over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad Revenue Growth and Margin Expansion
Record sales and EBIT growth, together with a 17.4% margin and nearly 50% operating leverage, indicate effective scale benefits and pricing discipline. Seven consecutive quarters of positive organic growth support the durability of earnings momentum over the coming quarters.
Read all positive factors
Assa Abloy (ASAZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.57B
Dividend Yield1.7%
Average Volume (3M)11.70K
Price to Earnings (P/E)25.8
Beta (1Y)0.89
Revenue Growth9.73%
EPS Growth24.72%
CountryUS
Employees62,083
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)7.35
Shares Outstanding2,110,100,000
10 Day Avg. Volume0
30 Day Avg. Volume11,697
Financial Highlights & Ratios
PEG Ratio-2.46
Price to Book (P/B)3.89
Price to Sales (P/S)2.59
P/FCF Ratio21.22
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda1.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.82
Revenue Forecast (FY)$15.99B
Assa Abloy Business Overview & Revenue Model
Company Description
ASSA ABLOY AB (publ), a company founded in 1954 and headquartered in Stockholm, Sweden, operates as a leading global provider of door opening products, integrated solutions, and related services. Its extensive market reach spans institutional, com...
How the Company Makes Money
ASSA ABLOY primarily makes money by selling access and door-opening solutions and related services across several major product categories. A significant share of revenue comes from hardware and systems sold for new construction and for retrofit/u...
Assa Abloy Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. The company delivered record sales, EBIT, EBITDA margin, earnings per share, and strong cash flow, with broad organic growth across EMEIA, the Americas, Global Tech, and Entrance Systems. Management also highlighted sustained growth momentum, acquisition activity, operational efficiencies, continued investment, and a strong balance sheet. These positives outweighed challenges in North American residential new-build, Greater China, South Korea, logistics, industrial activity, InVue timing, rising input costs, and M&A-related dilution.Positive Updates
Record Sales and Organic Growth
Q3 sales reached almost SEK 41 billion, up 7% year over year, including 4% organic growth, 2% from acquisitions, and a 1% positive currency effect. This was the first quarter in ASSA ABLOY's history with sales above SEK 40 billion.
Negative Updates
North American Residential New-Build Market Remained Challenging
North American residential new-build activity remained very challenging, and management said the recovery was not expected soon. Higher Federal Reserve interest rates and further increases in market rates were described as delaying recovery. Repair and renovation activity was believed to have bottomed out and was growing at very low single-digit levels.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Sales and Organic Growth
Q3 sales reached almost SEK 41 billion, up 7% year over year, including 4% organic growth, 2% from acquisitions, and a 1% positive currency effect. This was the first quarter in ASSA ABLOY's history with sales above SEK 40 billion.
Read all positive updates
Company Guidance
Management expects a positive impact from currency in Q4 of about 5%, operating margin towards the higher end of the 16% to 17% bandwidth, and another good significant occasion in Q4 for price versus cost accretion, although it may not reach the 60 bps achieved in Q3; Q3 demand was quite stable over the 3 months and October shows a similar pattern, specification business growth was high single-digit growth, NIS2 accounts for around 0.5% organic growth estimate in EMEIA and is expected to be a multiyear activity, R&R in North America may grow very low single-digit numbers perhaps, nonresidential markets are expected to show no slowdown looking forward perhaps a year or so, MFP 11 will launch in Q4 and will most probably be a little bit bigger than MFP 10, with exact numbers in the next call, and Gunnebo Entrance Control is expected to close in Q4.Assa Abloy Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 150.90B | 152.41B | 150.16B | 140.72B | 120.79B | 95.01B |
| Gross Profit | 65.35B | 64.97B | 62.73B | 56.50B | 47.93B | 37.78B |
| EBITDA | 30.70B | 29.43B | 29.85B | 26.95B | 22.66B | 18.02B |
| Net Income | 16.39B | 14.70B | 15.64B | 13.63B | 13.29B | 10.90B |
Balance Sheet | ||||||
| Total Assets | 228.11B | 208.38B | 223.60B | 196.36B | 154.43B | 129.97B |
| Cash, Cash Equivalents and Short-Term Investments | 3.87B | 1.40B | 4.53B | 1.70B | 3.42B | 4.33B |
| Total Debt | 71.39B | 65.35B | 73.50B | 65.19B | 33.90B | 28.75B |
| Total Liabilities | 116.75B | 106.65B | 116.52B | 104.71B | 68.54B | 60.39B |
| Stockholders Equity | 111.19B | 101.60B | 107.07B | 91.63B | 86.01B | 69.58B |
Cash Flow | ||||||
| Free Cash Flow | 21.28B | 18.64B | 19.33B | 18.66B | 12.36B | 10.74B |
| Operating Cash Flow | 23.83B | 21.41B | 21.39B | 21.29B | 14.36B | 12.46B |
| Investing Cash Flow | -9.84B | -13.16B | -13.93B | -47.90B | -10.56B | -3.09B |
| Financing Cash Flow | -12.28B | -11.18B | -4.45B | 24.73B | -4.70B | -7.81B |
Assa Abloy Technical Analysis
Positive
18.65
Price Trends
18.02
Positive
17.97
Positive
18.67
Positive
Market Momentum
0.23
Negative
70.52
Negative
99.94
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 18.65 is above the 20-day moving average (MA) of 17.85, above the 50-day MA of 18.02, and below the 200-day MA of 18.67, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 70.52 is Negative, neither overbought nor oversold. The STOCH value of 99.94 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.22B | 22.37 | 32.68% | 1.20% | 10.33% | 8.70% | |
77 Outperform | $42.57B | 25.83 | 15.46% | 1.70% | 9.73% | 24.72% | |
76 Outperform | $1.42B | 32.83 | 23.59% | 1.54% | 11.39% | 0.75% | |
72 Outperform | $5.02B | 8.92 | 16.83% | 3.20% | 2.10% | 6.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $829.56M | -176.15 | -4.53% | ― | 41.67% | 94.89% | |
54 Neutral | $36.40M | 74.29 | 1.16% | 67.73% | ― | ― |
* Industrials Sector Average
ASAZY
Assa Abloy
19.19
0.06
0.32%
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NSSC
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ALLE
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180.55
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10.64%
ADT
Adt
6.87
-1.45
-17.48%
EVLV
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4.58
-3.08
-40.21%
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.