Assa Abloy (ALZ) AI Stock Analysis

Assa Abloy

(Frankfurt:ALZ)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Margin expansion and operating leverageRecord EBIT growth and margin expansion indicate that scale, pricing, and operational efficiencies are translating into stronger profitability. Sustained operating leverage can support earnings resilience and provide resources for continued investment, acquisitions, and product development over the coming quarters.

Negative Factors

Recent revenue growth has slowedA slower top-line trajectory can limit the pace at which fixed costs, operating investments, and acquisitions translate into future earnings growth. Even with healthy margins, sustained modest revenue expansion would make continued performance increasingly dependent on pricing, efficiency gains, and capital deployment.

Assa Abloy (ALZ) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 44.12B
Dividend Yield: 1.57%
Average Volume (3M): 131
Price to Earnings (P/E): 25.8
Beta (1Y): 0.82
Revenue Growth: 2.92%
EPS Growth: 18.49%
Country: Germany
Employees: 62,083
Sector: Industrials
Sector Strength: 63
Industry: Security & Protection Services

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, commer...

Assa Abloy Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:5.56%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

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.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:ALZ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	83Outperform	$1.41B	32.52	23.59%	1.55%	11.39%	0.75%
ALLE	82Outperform	$15.72B	23.10	32.68%	1.16%	10.33%	8.70%
ADT	78Outperform	$7.20B	12.80	16.83%	2.23%	2.10%	6.68%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EVLV	57Neutral	$849.48M	-180.38	-4.53%	―	41.67%	94.89%
SNT	50Neutral	$36.40M	74.28	1.16%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:ALZ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:ALZ	Assa Abloy AB	17.10	1.95	12.89%
SNT	Senstar Technologies Ltd.	1.56	-3.30	-67.90%
NSSC	Napco Security	39.35	-0.77	-1.93%
ALLE	Allegion PLC	186.44	24.14	14.88%
ADT	Adt, Inc.	9.86	1.34	15.74%
EVLV	Evolv Technologies Holdings, Inc.	4.69	-2.91	-38.29%

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.

Assa Abloy AI Stock Analysis