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Assa Abloy (ASAZY)
OTHER OTC:ASAZY
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Assa Abloy (ASAZY) AI Stock Analysis

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ASAZY

Assa Abloy

(OTC:ASAZY)

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Outperform 77 (OpenAI - Gpt-5.6Sol)
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)

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
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
Strong overall fundamentals: income statement quality is high (re-accelerating TTM revenue growth and improving operating profit), cash generation is solid with consistently high free-cash-flow-to-net-income, and leverage appears manageable. Main watch items are higher absolute debt versus earlier years and modest operating cash flow coverage/cash conversion sensitivity to working-capital swings.
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue150.90B152.41B150.16B140.72B120.79B95.01B
Gross Profit65.35B64.97B62.73B56.50B47.93B37.78B
EBITDA30.70B29.43B29.85B26.95B22.66B18.02B
Net Income16.39B14.70B15.64B13.63B13.29B10.90B
Balance Sheet
Total Assets228.11B208.38B223.60B196.36B154.43B129.97B
Cash, Cash Equivalents and Short-Term Investments3.87B1.40B4.53B1.70B3.42B4.33B
Total Debt71.39B65.35B73.50B65.19B33.90B28.75B
Total Liabilities116.75B106.65B116.52B104.71B68.54B60.39B
Stockholders Equity111.19B101.60B107.07B91.63B86.01B69.58B
Cash Flow
Free Cash Flow21.28B18.64B19.33B18.66B12.36B10.74B
Operating Cash Flow23.83B21.41B21.39B21.29B14.36B12.46B
Investing Cash Flow-9.84B-13.16B-13.93B-47.90B-10.56B-3.09B
Financing Cash Flow-12.28B-11.18B-4.45B24.73B-4.70B-7.81B

Assa Abloy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.65
Price Trends
50DMA
18.02
Positive
100DMA
17.97
Positive
200DMA
18.67
Positive
Market Momentum
MACD
0.23
Negative
RSI
70.52
Negative
STOCH
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$15.22B22.3732.68%1.20%10.33%8.70%
77
Outperform
$42.57B25.8315.46%1.70%9.73%24.72%
76
Outperform
$1.42B32.8323.59%1.54%11.39%0.75%
72
Outperform
$5.02B8.9216.83%3.20%2.10%6.68%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
$829.56M-176.15-4.53%―41.67%94.89%
54
Neutral
$36.40M74.291.16%67.73%――
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASAZY
Assa Abloy
19.19
0.06
0.32%
SNT
Senstar Technologies
1.56
-3.21
-67.30%
NSSC
Napco Security Technologies
39.73
-3.35
-7.77%
ALLE
Allegion
180.55
17.36
10.64%
ADT
Adt
6.87
-1.45
-17.48%
EVLV
Evolv Technologies Holdings
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.Date of analysis: Oct 27, 2026