Hexagon AB (HXGBY) AI Stock Analysis

• Market Cap: $32.31B
• Dividend Yield: 1.3%
• Average Volume (3M): 6.91K
• Price to Earnings (P/E): 44.4
• Beta (1Y): 0.95
• Revenue Growth: 2.98%
• EPS Growth: -33.47%
• Country: US
• Employees: 25,091
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 6,913
• PEG Ratio: 1.28
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 4.55
• P/FCF Ratio: 25.68
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 6.67
• Enterprise Value/Gross Profit: 9.97
• Enterprise Value/Ebitda: 18.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $6.34B

• Rating: 76 Outperform
• Price Target: $12.50 ▲(3.48% Upside)

Hexagon AB's overall stock score reflects strong financial performance and strategic initiatives, balanced by valuation concerns and operational challenges. The company's robust cash flow and strategic divestments are significant strengths, while the high P/E ratio and regional weaknesses are notable risks.

Hexagon AB Business Overview & Revenue Model

Company Description

Hexagon 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 Money

Hexagon 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 Financial Statement Overview

Summary

Hexagon AB demonstrates strong financial performance with consistent revenue growth, robust profitability, and effective cash flow management. Despite 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.

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.

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.

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	1.72B	1.40B	1.01B
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

• Technical Analysis Sentiment: Positive
• Last Price: 12.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXGBY, the sentiment is Positive. The current price of 12.08 is below the 20-day moving average (MA) of 12.21, above the 50-day MA of 12.02, and above the 200-day MA of 10.92, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 14.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HXGBY.

Hexagon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HXGBY	76 Outperform	$32.31B	44.41	6.29%	1.30%	2.98%	-33.47%
KEYS	73 Outperform	$31.08B	57.62	9.98%	―	4.80%	-39.55%
TDY	72 Outperform	$24.09B	30.14	8.11%	―	7.41%	-12.85%
FTV	72 Outperform	$16.27B	29.25	7.79%	0.47%	-8.96%	-30.29%
COHR	67 Neutral	$24.28B	222.67	3.08%	―	20.80%	―
TRMB	66 Neutral	$18.77B	53.66	6.13%	―	-0.86%	-75.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hexagon AB Corporate Events

Hexagon AB’s Earnings Call: Growth Amid Challenges

Hexagon AB’s recent earnings call conveyed a cautiously optimistic sentiment, highlighting a return to organic growth and robust cash conversion. The company celebrated successful product launches and strategic acquisitions, which bolstered its performance. However, challenges such as currency impacts, geopolitical uncertainties, and difficulties in specific divisions and regions, particularly Geosystems and EMEA, were also acknowledged.

Hexagon AB Reports Organic Growth Amid Market Challenges

Hexagon AB, a leading company in precision measurement technologies and data-driven insights, operates across various sectors including manufacturing intelligence, asset lifecycle intelligence, and autonomous solutions. In its latest earnings report for the first half of 2025, Hexagon reported a return to organic growth with a 3% increase in organic revenue and a 1% rise in net sales, reaching 1,370.7 MEUR. Despite a challenging market environment, the company achieved a strong cash conversion rate of 104%, although adjusted operating earnings saw a decline of 10% due to currency impacts. Key highlights include the launch of new products such as the AEON humanoid robot and MAESTRO coordinate measurement machine, as well as strategic acquisitions and divestments to streamline operations. Looking forward, Hexagon’s management is focused on accelerating organic growth and implementing a cost improvement program to navigate ongoing market uncertainties and enhance performance.