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Hexagon AB
(OTC:HXGBY)
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Rating:78Outperform
Price Target:
$11.00
▲(9.02% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid financial strength (improving leverage, strong profitability and cash generation) and a positive technical uptrend with the stock trading above major moving averages. Valuation further supports the rating with a low P/E and very high dividend yield. The latest earnings call added support via strong quarterly execution and reiterated targets, balanced by mix/end-market softness and robotics/M&A execution risks.
Positive Factors
Broad Organic Growth
Broad-based organic growth across Autonomous Solutions, Manufacturing Intelligence, and Infrastructure & Geospatial indicates strong customer adoption and supports durable revenue expansion beyond a single market or product.
Negative Factors
Topline and Earnings Decline
Recent contraction in revenue and bottom-line earnings weakens the near-term earnings base and raises questions about demand quality, mix, and the pace at which management can restore sustained growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad Organic Growth
Broad-based organic growth across Autonomous Solutions, Manufacturing Intelligence, and Infrastructure & Geospatial indicates strong customer adoption and supports durable revenue expansion beyond a single market or product.
Read all positive factors
Hexagon AB (HXGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.31B
Dividend Yield18.24%
Average Volume (3M)31.68K
Price to Earnings (P/E)42.4
Beta (1Y)0.94
Revenue Growth-6.47%
EPS Growth-37.07%
CountryUS
Employees25,091
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.20
Shares Outstanding2,595,227,800
10 Day Avg. Volume18,106
30 Day Avg. Volume31,676
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)2.62
Price to Sales (P/S)4.94
P/FCF Ratio26.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.36
Revenue Forecast (FY)$4.74B
Hexagon AB Business Overview & Revenue Model
Company Description
Hexagon AB (publ), a company based in Stockholm, Sweden, delivers advanced information technology solutions globally, catering to both industrial and geospatial sectors. The organization’s operations are divided into two main business units. The I...
How the Company Makes Money
Hexagon makes money primarily by selling a mix of software, hardware, and related services tied to measurement and geospatial workflows.
1) Software revenue: A significant portion of revenue is generated from software used for design/engineering,...
Hexagon AB Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call communicated a strong, operationally driven quarter: double‑digit organic growth (12%), marked margin improvement (EBITAC 24.3% on an adjusted basis), exceptional cash conversion (149%) and a sharp reduction in leverage to 0.3x. Management completed major portfolio actions (Octave separation), advanced M&A and robotics commercialization, and delivered near‑term cost savings ahead of plan. Challenges remain around unfavorable hardware/software mix, regional end‑market softness (automotive in China, construction in parts of EMEA/China, agriculture), ongoing robotics investment needs, and integration/timing for the Waygate acquisition. Overall, positive financial and operational momentum outweighs the noted execution and market risks.Positive Updates
Strong Organic Revenue Growth
Revenue grew organically 12% in Q2, the highest organic growth reported in the last five years, with growth across all three business areas and an ~EUR 110 million underlying top-line increase (after structural divestments and FX effects).
Negative Updates
Unfavourable Revenue Mix Effects
Strong hardware/sensor sales (sensors +17%) weighed on margin mix because hardware carries slightly lower gross margins versus software/recurring revenue; sale of design & engineering reduced recurring revenue in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Organic Revenue Growth
Revenue grew organically 12% in Q2, the highest organic growth reported in the last five years, with growth across all three business areas and an ~EUR 110 million underlying top-line increase (after structural divestments and FX effects).
Read all positive updates
Company Guidance
Hexagon reiterated its Capital Markets Day mid‑term targets—organic growth of 4–6% (2026–2030), EBITAC margins of 24–26% and cash conversion of 90–100% of EBITAC—and committed to cut Scope 1 & 2 emissions by 70% vs 2022 and reach net‑zero by 2050. Near‑term guidance and expectations: Robotics commercialization by end‑2026 with Robotics costs around €50m for FY2026 (Q2 Robotics cost €10m); the restructuring program is essentially complete with a €73.5m run‑rate (target €74m), delivered €14m in Q2 and is expected to add ~€18m in Q3; the Waygate acquisition is expected to close in H2 (most likely Q4) for USD 630m (overall ≈10% EBIT margin; two core divisions ≈USD 330m at ~16% margin). Management also highlighted strong balance‑sheet flexibility (net leverage ~0.3x vs a 2.5x target) and reaffirmed operational leverage after a strong Q2 (12% organic growth, gross margin ~62% [62.3% ex D&E], EBITAC 24.3%, cash conversion 149%, operating cash flow pre‑tax €364m).Hexagon AB Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.74B | 5.42B | 5.40B | 5.44B | 5.16B | 4.34B |
| Gross Profit | 3.05B | 3.60B | 3.61B | 3.54B | 3.36B | 2.80B |
| EBITDA | 3.25B | 1.72B | 2.01B | 1.78B | 1.72B | 1.40B |
| Net Income | 544.50M | 617.40M | 1.02B | 858.90M | 1.01B | 801.60M |
Balance Sheet | ||||||
| Total Assets | 10.32B | 17.11B | 17.85B | 16.88B | 16.48B | 14.10B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16B | 758.20M | 663.80M | 547.10M | 486.30M | 472.10M |
| Total Debt | 2.64B | 4.11B | 3.83B | 4.08B | 3.87B | 2.94B |
| Total Liabilities | 4.68B | 6.85B | 6.65B | 6.84B | 6.61B | 5.33B |
| Stockholders Equity | 5.61B | 10.22B | 11.16B | 10.01B | 9.83B | 8.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | 1.02B | 955.90M | 743.80M | 763.30M | 898.70M |
| Operating Cash Flow | 1.61B | 1.62B | 1.59B | 1.37B | 1.33B | 1.32B |
| Investing Cash Flow | 1.83B | -1.26B | -710.10M | -1.03B | -1.80B | -1.17B |
| Financing Cash Flow | -1.59B | -177.40M | -764.10M | -249.30M | 493.30M | -86.50M |
Hexagon AB Technical Analysis
Positive
10.09
Price Trends
9.87
Negative
9.26
Positive
9.17
Positive
Market Momentum
-0.03
Positive
48.76
Neutral
53.96
Neutral
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 10.09 is above the 20-day moving average (MA) of 9.85, above the 50-day MA of 9.87, and above the 200-day MA of 9.17, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HXGBY.
Hexagon AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $28.07B | 29.22 | 9.13% | ― | 7.70% | 13.95% | |
78 Outperform | $26.31B | 42.35 | 5.75% | 18.24% | -6.47% | -37.07% | |
74 Outperform | $5.34B | 89.43 | 4.90% | ― | 7.61% | -7.28% | |
73 Outperform | $10.04B | 57.76 | 11.48% | 0.56% | 17.15% | 45.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $13.37B | -121.51 | -1.87% | ― | 5.80% | -140.22% | |
56 Neutral | $16.73B | 31.88 | 8.52% | 0.57% | -29.80% | -23.46% |
* Technology Sector Average
HXGBY
Hexagon AB
9.88
-0.18
-1.76%
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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.