Hexagon AB (HEXA.B) AI Stock Analysis

• Market Cap: kr262.05B
• Dividend Yield: 1.55%
• Average Volume (3M): 3.60M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.38
• Revenue Growth: -1.12%
• EPS Growth: 14.34%
• Country: SE
• Employees: 25,091
• Sector: Industrials
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.02
• Shares Outstanding: 2,595,227,800
• 10 Day Avg. Volume: 3,596,899
• 30 Day Avg. Volume: 3,598,927
• PEG Ratio: -4.50
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr115.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: kr108.00 ▲(11.80%Upside)

Hexagon AB's overall score is driven by its strong financial health, characterized by high profitability and solid balance sheet. The technical analysis points to a stable price trend, and valuation metrics suggest the stock is fairly priced. The moderate revenue growth indicates a potential area for improvement.

Hexagon AB Business Overview & Revenue Model

Company Description

Hexagon AB is a leading global provider of information technology solutions that drive productivity and quality across geospatial and industrial enterprise applications. The company's core offerings include a diverse range of software solutions, sensors, and autonomous technologies that enable clients to leverage data-driven insights. Hexagon operates primarily in two sectors: Geospatial Enterprise Solutions and Industrial Enterprise Solutions, catering to industries such as agriculture, construction, mining, manufacturing, and aerospace.

How the Company Makes Money

Hexagon AB generates revenue through the sale of its software solutions, sensors, and related services. The company offers a variety of products, such as computer-aided design (CAD) software, geographic information systems (GIS), and precision measurement tools, which are sold to industries that require data accuracy and analysis. Hexagon further monetizes its offerings through subscription models for software services and maintenance contracts, ensuring a recurring revenue stream. Strategic partnerships with technology firms and industry leaders also enhance its market reach and drive additional revenue. The company's focus on innovation and customer-centric solutions contributes significantly to its earnings.

Hexagon AB Financial Statement Overview

Summary

Hexagon AB exhibits strong financial health characterized by robust profitability with high profit margins, a solid balance sheet with low leverage, and consistent cash flow generation. However, moderate revenue growth indicates potential for further expansion.

Income Statement

Hexagon AB demonstrates strong profitability with a gross profit margin of 67.0% and a net profit margin of 18.0% for TTM (Trailing-Twelve-Months). The EBIT margin is also robust at 25.1%. Although revenue growth has been moderate, the company maintains solid EBITDA margins, reflecting efficient cost management.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.37, indicating low leverage relative to equity, and an equity ratio of 61.7%, showing a strong equity base. Return on equity is satisfactory at 8.9%, suggesting effective utilization of equity to generate profits.

Cash Flow

Hexagon AB shows consistent free cash flow generation with a recent growth rate of 3.6%. The operating cash flow to net income ratio is 1.66, highlighting strong cash conversion from profits. While free cash flow to net income ratio stands at 1.02, reflecting adequate coverage of net income by free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.42B	5.40B	5.44B	5.16B	4.34B	3.76B
	Gross Profit
3.64B	3.61B	3.54B	3.36B	2.80B	2.37B
	EBIT
1.36B	1.43B	1.22B	1.29B	1.01B	787.00M
	EBITDA
1.92B	2.01B	1.78B	1.75B	1.58B	1.32B
	Net Income Common Stockholders
974.70M	1.02B	858.90M	1.01B	801.60M	618.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
549.00M	663.80M	547.10M	486.30M	472.10M	397.40M
	Total Assets
17.76B	17.85B	16.88B	16.48B	14.10B	10.70B
	Total Debt
4.04B	3.83B	4.08B	3.87B	2.94B	2.65B
	Net Debt
3.49B	3.32B	3.67B	3.48B	2.51B	2.32B
	Total Liabilities
6.77B	6.65B	6.84B	6.61B	5.33B	4.75B
	Stockholders Equity
10.95B	11.16B	10.01B	9.83B	8.73B	5.93B
Cash Flow		Free Cash Flow
989.90M	955.90M	743.80M	763.30M	898.70M	909.90M
	Operating Cash Flow
1.62B	1.59B	1.37B	1.33B	1.32B	1.30B
	Investing Cash Flow
-1.23B	-710.10M	-1.03B	-1.80B	-1.17B	-1.18B
	Financing Cash Flow
-341.20M	-764.10M	-249.30M	493.30M	-86.50M	-188.70M

Hexagon AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HEXA.B, the sentiment is Negative. The current price of 96.6 is above the 20-day moving average (MA) of 96.12, below the 50-day MA of 97.15, and below the 200-day MA of 104.13, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HEXA.B.

Hexagon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEXA.B	74 Outperform	kr262.05B	23.26	9.32%	1.55%	-1.12%	14.34%
NOTE	72 Outperform	kr4.70B	18.67	15.49%	4.17%	-9.37%	-15.84%
LAGR.B	70 Neutral	kr44.96B	42.37	27.21%	0.83%	12.93%	12.07%
IVSO	67 Neutral	€16.69B	55.40	32.01%	0.34%	48.40%	90.79%
Sector *	65 Neutral	$4.46B	12.18	5.23%	249.77%	4.11%	-12.28%
HTRO	61 Neutral	kr5.29B	14.42	9.71%	―	13.10%	-46.33%
ERIC.B	59 Neutral	kr271.57B	168.94	1.65%	3.40%	-1.79%	―

Hexagon AB Corporate Events

Hexagon AB AGM Highlights Strategic Initiatives for Growth

Hexagon AB’s Annual General Meeting resulted in the re-election of key board members and the introduction of a new performance-based long-term share program aimed at enhancing company earnings. The AGM also authorized the board to manage acquisitions and share transfers to optimize capital structure and shareholder value, reflecting a strategic focus on growth and operational efficiency.