Hexatronic Group AB (HTRO) AI Stock Analysis

• Market Cap: kr5.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.12
• Revenue Growth: 13.10%
• EPS Growth: -46.33%
• Country: SE
• Employees: 1,997
• Sector: Technology
• Sector Strength: 76
• Industry: Communication Equipment
• EPS (TTM): 0.42
• Shares Outstanding: 203,026,610
• 10 Day Avg. Volume: 1,811,495
• 30 Day Avg. Volume: 1,186,046
• PEG Ratio: 2.04
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.29
• 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: kr47.12
• Price Target Upside: 74.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Hexatronic Group AB's stock is moderately favorable, with strengths in financial performance and valuation. The company's solid profitability and balanced leverage are notable, though the slight revenue decline and increasing debt levels are concerns. The technical analysis suggests a lack of upward momentum, as the stock trades below key moving averages. The valuation is attractive with a reasonable P/E ratio, but the absence of a dividend yield may deter some investors. Overall, the stock shows potential but requires careful monitoring of financial and technical indicators.

Hexatronic Group AB Business Overview & Revenue Model

Company Description

Hexatronic Group AB (HTRO) is a Sweden-based technology group specializing in fiber optic products and solutions for telecommunication networks. The company operates in multiple sectors, including infrastructure, telecom, and data communication, providing a wide range of products such as cables, ducts, and network accessories. Hexatronic is known for its comprehensive solutions that cater to the deployment, maintenance, and management of fiber optic networks, supporting the growing demand for high-speed internet and data services.

How the Company Makes Money

Hexatronic Group AB generates revenue primarily through the sale of its fiber optic products and solutions. The company's key revenue streams include the manufacturing and distribution of fiber optic cables, connectivity products, and network accessories. Hexatronic serves a diverse customer base, including telecom operators, network owners, and installers, providing them with the necessary components for building and expanding fiber optic infrastructure. Additionally, the company engages in strategic partnerships and acquisitions to enhance its product offerings and expand its market presence, contributing to its overall earnings.

Hexatronic Group AB Financial Statement Overview

Summary

Hexatronic Group AB demonstrates a robust financial position with strong profitability and stable leverage. While income statement metrics reflect operational efficiency, the slight revenue decline in the latest period warrants attention. The balance sheet maintains a healthy equity ratio, though increasing debt levels could pose future risks. Cash flow management remains crucial, given the fluctuations in free cash flow growth. Overall, the company is well-positioned but must focus on sustaining revenue growth and managing leverage effectively.

Income Statement

The company's income statement shows strong gross and net profit margins with a consistent revenue stream. However, there is a slight decline in revenue growth in the most recent TTM period compared to the previous year, indicating potential challenges in maintaining growth momentum. EBIT and EBITDA margins are solid, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced approach to leverage, though it has increased slightly over the years. The equity ratio suggests a solid equity base, enhancing financial stability. Return on equity is decent, showing reasonable returns on shareholders' investments.

Cash Flow

The cash flow statement highlights a strong operating cash flow, though free cash flow growth has been inconsistent. The operating cash flow to net income ratio suggests efficient cash generation relative to net income. However, the decline in free cash flow indicates potential challenges in cash reserve management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.54B	7.58B	8.15B	6.57B	3.49B	2.08B
	Gross Profit
2.42B	3.17B	3.50B	2.87B	1.53B	942.21M
	EBIT
522.00M	680.00M	1.12B	1.03B	355.10M	177.33M
	EBITDA
945.00M	1.10B	1.46B	1.26B	483.40M	271.18M
	Net Income Common Stockholders
371.00M	346.00M	848.00M	795.00M	253.10M	126.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
813.00M	633.00M	813.00M	552.00M	675.10M	212.30M
	Total Assets
8.73B	8.96B	8.73B	7.39B	4.72B	1.95B
	Total Debt
3.49B	3.07B	3.49B	2.35B	1.92B	744.66M
	Net Debt
2.68B	2.44B	2.68B	1.80B	1.25B	532.36M
	Total Liabilities
5.30B	4.91B	5.30B	4.58B	3.07B	1.30B
	Stockholders Equity
3.40B	4.02B	3.40B	2.77B	1.64B	649.53M
Cash Flow		Free Cash Flow
331.00M	596.00M	426.00M	190.50M	-97.60M	184.85M
	Operating Cash Flow
602.00M	921.00M	944.00M	669.50M	104.70M	249.84M
	Investing Cash Flow
-365.00M	-508.00M	-1.43B	-1.10B	-1.15B	-229.04M
	Financing Cash Flow
-491.00M	-613.00M	770.00M	270.60M	1.51B	89.50M

Hexatronic Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.05
• 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:HTRO, the sentiment is Negative. The current price of 27.05 is above the 20-day moving average (MA) of 26.40, above the 50-day MA of 26.70, and below the 200-day MA of 38.82, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 76.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HTRO.

Hexatronic Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOTE	71 Outperform	kr4.76B	18.76	15.49%	4.05%	-9.37%	-15.84%
HTRO	67 Neutral	kr5.32B	14.52	9.71%	―	13.10%	-46.33%
EPEN	64 Neutral	kr3.19B	21.60	10.90%	0.96%	-9.87%	-29.55%
Sector *	60 Neutral	$11.59B	10.44	-7.23%	2.94%	7.46%	-10.66%
NETI.B	59 Neutral	€1.04B	24.76	6.63%	―	0.86%	-32.38%
MAVEN	55 Neutral	kr394.19M	1,947.62	-6.45%	1.26%	-20.56%	-99.26%
GAPW.B	46 Neutral	kr407.98M	―	-39.91%	―	91.56%	27.01%

Hexatronic Group AB Corporate Events

Hexatronic’s Climate Targets Approved by SBTi

Hexatronic Group AB has achieved a significant milestone with its climate targets for 2030 being approved by the Science Based Targets initiative (SBTi). This approval aligns Hexatronic’s Scope 1 and 2 targets with the global ambition to limit warming and ensures that its Scope 3 target meets SBTi requirements for emission reductions in the value chain. The company aims to reduce greenhouse gas emissions in Scope 1 and 2 by 42% and Scope 3 emissions by 51.6% in economic intensity by 2030, calculated from a 2022 baseline. This commitment underscores Hexatronic’s dedication to sustainability and positions its fiber optic infrastructure as a key component in a sustainable communications environment.

The most recent analyst rating on (SE:HTRO) stock is a Buy with a SEK47.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.

Hexatronic Group AB AGM Resolutions and Strategic Initiatives

At the recent Annual General Meeting, Hexatronic Group AB resolved to adopt the income statement and balance sheet for 2024, with no dividend distribution. Key resolutions included re-election of board members, approval of remuneration, and adoption of long-term incentive programs for employees in and outside Sweden. The AGM also authorized the board to manage share acquisitions and transfers, aiming to optimize the company’s capital structure and facilitate potential acquisitions.