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Hexagon AB (HXGBY)
OTHER OTC:HXGBY
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Hexagon AB
(OTC:HXGBY)
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Rating:76Outperform
Price Target:
$12.50
▲(6.38% Upside)
Hexagon AB's overall stock score is driven by strong financial performance and moderate technical indicators. The company's robust cash flow and profitability metrics are significant strengths. However, valuation concerns and mixed earnings call sentiment slightly dampen the score. The absence of notable corporate events means the focus remains on financial and technical aspects.
Hexagon AB (HXGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.91B
Dividend Yield1.33%
Average Volume (3M)3.96K
Price to Earnings (P/E)32.3
Beta (1Y)0.97
Revenue Growth0.66%
EPS Growth10.80%
CountryUS
Employees25,091
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.12
Shares Outstanding2,595,227,800
10 Day Avg. Volume0
30 Day Avg. Volume3,957
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)2.20
Price to Sales (P/S)4.55
P/FCF Ratio25.68
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue5.80
Enterprise Value/Gross Profit8.66
Enterprise Value/Ebitda16.18
Forecast
1Y Price Target
$12.50Price Target Upside6.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Hexagon AB Business Overview & Revenue Model
Company DescriptionHexagon AB is a global leader in digital reality solutions, combining sensor, software, and autonomous technologies. The company operates primarily in the fields of manufacturing, construction, automotive, aerospace, and agriculture. Hexagon offers a wide range of products and services, including measurement and visualization solutions through its hardware and software platforms, which enhance productivity and improve safety and quality in various industries.
How the Company Makes MoneyHexagon AB generates revenue through multiple streams, primarily by providing advanced measurement technologies and software solutions. Key revenue sources include the sale of hardware such as laser scanners and coordinate measuring machines, as well as software licenses and subscription services for their data management and analysis platforms. Additionally, Hexagon benefits from maintenance and support services, which provide ongoing revenue from existing customers. The company also engages in strategic partnerships with other technology firms and industry leaders, enhancing its offerings and expanding its market reach, which significantly contributes to its earnings.
Hexagon AB Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative trends. While Hexagon reported a return to organic growth and strong cash conversion, challenges such as geopolitical uncertainties, currency impacts, and weaknesses in certain markets like EMEA and China were noted. The company is taking steps to address these issues through a cost improvement program. The sentiment of the call is neutral as the highlights and lowlights are balanced.Q2-2025 Updates
Positive Updates
Return to Organic Growth
Hexagon reported a return to organic growth of 3% in Q2, driven by improvements in the overall environment and strategic price increases.
Strong Cash Conversion
The company achieved an excellent cash conversion rate of 104%, indicating strong operational cash flow management.
Geographical Growth
Sequential growth was observed in the Americas and Asia, with the Americas growing by 6% and Asia by 5%.
Launch of AEON
Hexagon launched AEON, an autonomous humanoid robot designed for industry, showcasing innovation in robotics and industrial applications.
Recognition for Sustainability
Hexagon was named on TIME World's Most Sustainable Companies in 2025, reflecting its commitment to sustainability.
Negative Updates
Geopolitical and Currency Impacts
Geopolitical uncertainty and a significant negative currency impact of 130 basis points affected operating margins, which were reported at 26%.
Weakness in EMEA and Construction Markets
EMEA experienced a 2% decline, and Geosystems saw a 1% organic decline due to weak European construction demand.
Challenges in China
Continued challenges in the Chinese construction market, affecting Geosystems negatively.
Cost Base Misalignment
A misalignment in the cost base was identified, prompting a new cost improvement program to address profitability issues.
Company Guidance
During the Hexagon Q2 earnings call, the company reported several key financial metrics and strategic initiatives. Hexagon achieved a return to organic growth of 3% in the second quarter of fiscal year 2025, maintaining stable gross margins at 67% and demonstrating an exceptional cash conversion rate of 104%. Despite geopolitical uncertainties and a significant negative currency impact of 130 basis points on operating margins, which stood at 26%, the company mitigated these challenges through strategic price increases and innovations. The earnings per share (EPS) decreased by 9% to €9.8, while operating earnings fell by 10% to €360.6 million. Hexagon's divisions showed mixed performance, with strong growth in Autonomous Solutions and Asset Lifecycle Intelligence, modest growth in Manufacturing Intelligence and SIG, and a slight contraction in Geosystems. The company announced a potential spin-off of its Octave division, aimed for completion in the first half of 2026, and launched AEON, an autonomous humanoid robot. Additionally, Hexagon plans to implement a cost improvement program to align its cost base with growth aspirations, with further updates expected by the third quarter results.Hexagon AB Financial Statement Overview
Summary
Hexagon AB presents a strong financial position with consistent revenue growth, robust profitability, and effective cash flow management. While there is slight pressure on operational margins, the company's leverage remains manageable, and cash flow metrics indicate healthy liquidity and operational efficiency.Income Statement
Hexagon AB demonstrates strong profitability with a consistent gross profit margin around 66-67% and a net profit margin improving to 17.31% in TTM. Revenue growth is positive at 8.4% TTM, indicating a healthy upward trend. However, the EBIT and EBITDA margins have slightly decreased in the TTM, suggesting some pressure on operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet is stable with a moderate debt-to-equity ratio of 0.44 in TTM, indicating manageable leverage. Return on equity is slightly declining but remains healthy at 8.90% TTM. The equity ratio is not explicitly calculated but appears robust given the total assets and equity figures.78
Positive
Cash Flow
Hexagon AB shows strong cash flow management with a significant free cash flow growth of 204.7% in TTM. The operating cash flow to net income ratio is 0.47, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 0.62, reflecting efficient cash conversion.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.44B | 5.40B | 5.44B | 5.16B | 4.34B | 3.76B |
| Gross Profit | 3.64B | 3.61B | 3.54B | 3.36B | 2.80B | 2.37B |
| EBITDA | 1.95B | 2.01B | 1.78B | 1.75B | 1.58B | 1.32B |
| Net Income | 941.90M | 1.02B | 858.90M | 1.01B | 801.60M | 618.10M |
Balance Sheet | ||||||
| Total Assets | 17.07B | 17.85B | 16.88B | 16.48B | 14.10B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 575.50M | 663.80M | 547.10M | 486.30M | 472.10M | 397.40M |
| Total Debt | 4.40B | 3.83B | 4.08B | 3.87B | 2.94B | 2.65B |
| Total Liabilities | 7.03B | 6.65B | 6.84B | 6.61B | 5.33B | 4.75B |
| Stockholders Equity | 10.01B | 11.16B | 10.01B | 9.83B | 8.73B | 5.93B |
Cash Flow | ||||||
| Free Cash Flow | 1.01B | 955.90M | 743.80M | 763.30M | 898.70M | 909.90M |
| Operating Cash Flow | 1.64B | 1.59B | 1.37B | 1.33B | 1.32B | 1.30B |
| Investing Cash Flow | -1.30B | -710.10M | -1.03B | -1.80B | -1.17B | -1.18B |
| Financing Cash Flow | -222.30M | -764.10M | -249.30M | 493.30M | -86.50M | -188.70M |
Hexagon AB Technical Analysis
Neutral
11.75
Price Trends
11.38
Positive
10.69
Positive
10.53
Positive
Market Momentum
0.29
Negative
50.83
Neutral
58.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXGBY, the sentiment is Neutral. The current price of 11.75 is above the 20-day moving average (MA) of 11.72, above the 50-day MA of 11.38, and above the 200-day MA of 10.53, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HXGBY.
Hexagon AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 27.06B | 31.79 | 8.28% | ― | 6.47% | -1.48% | |
76 Outperform | $32.91B | 32.33 | 8.96% | 1.33% | 0.66% | 10.80% | |
75 Outperform | 16.42B | 21.52 | 7.41% | 0.58% | -0.12% | -11.27% | |
74 Outperform | 29.79B | 55.22 | 9.59% | ― | 4.80% | -39.55% | |
70 Outperform | 19.33B | 69.37 | 26.18% | ― | -3.72% | -80.83% | |
60 Neutral | 16.67B | -201.15 | 0.61% | ― | 23.42% | 71.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
HXGBY
Hexagon AB
11.77
0.93
8.58%
COHR
Coherent Corp
106.99
17.16
19.10%
TDY
Teledyne Technologies
577.11
141.37
32.44%
TRMB
Trimble
81.24
19.59
31.78%
KEYS
Keysight Technologies
173.34
14.64
9.22%
FTV
Fortive
48.53
-10.88
-18.31%
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.