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Assa Abloy AB (ASAZY)
:ASAZY
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Assa Abloy
(OTC:ASAZY)
70Outperform
Assa Abloy (ASAZY) vs. S&P 500 (SPY)
Market Cap
$33.30B
Dividend Yield0.97%
Average Volume (3M)6.00K
Price to Earnings (P/E)22.4
Beta (1Y)0.98
Revenue Growth7.17%
EPS Growth15.22%
CountryUS
Employees63,000
SectorIndustrials
Sector Strength66
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.67
Shares Outstanding2,110,100,000
10 Day Avg. Volume0
30 Day Avg. Volume6,000
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)N/A
Price to Sales (P/S)2.24
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Assa Abloy Business Overview & Revenue Model
Company DescriptionAssa Abloy (ASAZY) is a global leader in access solutions, offering products and services related to locks, doors, gates, and entrance automation. The company operates across various sectors, including commercial, residential, and institutional markets, providing a wide range of solutions such as mechanical and digital locks, access control systems, identification technology, entrance automation, and hotel security solutions. Its comprehensive product portfolio caters to enhancing security and convenience for its global customer base.
How the Company Makes MoneyAssa Abloy makes money primarily through the sale of its access solutions and related services. The company's revenue model is based on selling mechanical and digital locks, entrance automation systems, and other security solutions to various market segments, including commercial, residential, and institutional clients. Key revenue streams include product sales, service contracts, and maintenance agreements. Assa Abloy also benefits from strategic acquisitions that expand its product offerings and market reach. Additionally, the company invests in research and development to innovate and introduce new technologies, ensuring it remains competitive in the global security solutions market.
Assa Abloy Financial Statement Overview
Summary
Assa Abloy demonstrates strong financial performance with solid revenue and profitability growth, efficient cost management, and robust cash flow generation. The balance sheet is stable with manageable leverage and a strong capital structure.Income Statement
Assa Abloy demonstrates a strong financial performance with a consistent increase in revenue and profitability. Gross profit margin improved to 41.76%, reflecting efficient cost management. The net profit margin is robust at 10.41%, indicating stable profitability. Revenue growth rate of 6.70% shows healthy expansion. EBIT and EBITDA margins strengthen further to 16.16% and 19.87%, respectively, showcasing operational efficiency.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a debt-to-equity ratio of 0.69, suggesting manageable leverage. ROE is impressive at 14.61%, reflecting efficient use of equity. The equity ratio is substantial at 47.91%, indicating a strong capital structure. The balance sheet highlights a good balance between growth and financial stability.78
Positive
Cash Flow
Cash flow analysis reveals strong operational cash flow with an operating cash flow to net income ratio of 1.37, highlighting effective cash generation. Free cash flow to net income ratio is stable at 1.24, indicating healthy cash surplus. Free cash flow growth rate of 3.61% reflects ongoing investments and expansion capacity.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 105.61B | 150.16B | 140.72B | 120.79B | 95.01B | 87.65B | Gross Profit |
| 41.72B | 62.73B | 56.50B | 47.93B | 37.78B | 34.31B | EBIT |
| 15.81B | 24.27B | 21.79B | 18.53B | 14.18B | 12.46B | EBITDA |
| 19.93B | 29.85B | 26.95B | 22.53B | 18.02B | 16.20B | Net Income Common Stockholders |
| 11.45B | 15.64B | 13.63B | 13.29B | 10.90B | 9.17B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.50B | 4.50B | 1.70B | 3.42B | 4.33B | 2.80B | Total Assets |
| 223.60B | 223.60B | 196.35B | 154.56B | 129.97B | 117.43B | Total Debt |
| 73.50B | 73.50B | 65.19B | 33.73B | 28.75B | 29.46B | Net Debt |
| 69.00B | 69.00B | 63.73B | 30.32B | 24.43B | 26.70B | Total Liabilities |
| 116.52B | 116.52B | 104.71B | 68.54B | 60.38B | 58.55B | Stockholders Equity |
| 107.07B | 107.07B | 91.63B | 86.01B | 69.58B | 58.87B |
| Cash Flow | Free Cash Flow | ||||
| 8.78B | 19.33B | 18.66B | 12.36B | 10.74B | 11.85B | Operating Cash Flow |
| 10.56B | 21.39B | 21.29B | 14.36B | 12.46B | 13.66B | Investing Cash Flow |
| -5.50B | -13.93B | -47.90B | -10.56B | -3.09B | -6.74B | Financing Cash Flow |
| -6.93B | -4.45B | 24.73B | -4.70B | -7.81B | -4.56B |
Assa Abloy Technical Analysis
Negative
14.95
Price Trends
15.41
Negative
15.24
Negative
15.25
Negative
Market Momentum
-0.17
Positive
41.15
Neutral
14.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAZY, the sentiment is Negative. The current price of 14.95 is below the 20-day moving average (MA) of 15.54, below the 50-day MA of 15.41, and below the 200-day MA of 15.25, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASAZY.
Assa Abloy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $33.30B | 22.42 | 15.74% | 0.97% | 7.17% | 15.22% | |
68 Neutral | $75.57B | 29.97 | 35.88% | 1.00% | 12.22% | 28.13% | |
68 Neutral | $11.26B | 19.13 | 42.39% | 1.47% | 3.33% | 11.51% | |
65 Neutral | $146.67B | 38.76 | 7.57% | 0.53% | -13.50% | -17.25% | |
62 Neutral | $8.07B | 13.60 | 3.76% | 3.13% | 3.60% | -14.67% | |
60 Neutral | $14.74B | 18.53 | -118.61% | 1.70% | -1.74% | -6.91% | |
57 Neutral | $11.88B | 40.63 | 3.22% | 4.24% | -2.63% | ― |
* Industrials Sector Average
Performance Comparison
ASAZY
Assa Abloy
14.95
0.71
4.99%
DHR
Danaher
200.39
-42.79
-17.60%
TT
Trane Technologies
341.65
43.27
14.50%
MAS
Masco
69.84
-6.85
-8.93%
SWK
Stanley Black & Decker
76.14
-16.66
-17.95%
ALLE
Allegion
131.00
1.47
1.13%
Assa Abloy Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -1.71% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong financial performance and record-breaking achievements in operating income, acquisitions, and product launches. However, these positives were offset by organic sales challenges, particularly in the APAC region and the residential market. The company remains optimistic about certain segments and regions but acknowledges ongoing economic uncertainties.Highlights
Record Operating Income and Cash Flow
Operating income reached a record high of SEK6.5 billion with strong cash conversion of 141% in Q4 and SEK8 billion in cash flow for the quarter.
Acquisition Success
The company completed eight acquisitions in Q4 and 26 in the full year, setting a new record, contributing to a 6% growth through acquisitions.
Global Tech Segment Performance
Global Tech saw a 5% organic sales growth with an operating margin of 19.3%, driven by strong performance in HID and Global Solutions.
New Product Launches
The company launched over 550 new products in 2024, marking a record year for product innovation.
Lowlights
Organic Sales Decline
Organic sales declined by 0.3%, with significant sales declines in APAC and Entrance Systems.
APAC Region Challenges
APAC experienced an 11% organic sales decline, with severe declines in China and Southeast Asia.
Residential Market Weakness
Continued challenging market conditions on the residential side, particularly affecting the logistics vertical in Entrance Systems.
Europe Sales Decline
Sales in Europe declined by 2%, with lower activity on the residential side despite strong commercial activity.
Company Guidance
In the fiscal year-end report for 2024, ASSA ABLOY presented a stable organic sales development with a slight decline of 0.3%, while acquisition growth contributed a robust 6% and currency effects added 1%, resulting in a 7% increase in top-line revenue to SEK40 billion. The company reported a strong operating margin of 16.5% and a record operating income of approximately SEK6.5 billion. Cash conversion was notably high at 141% for the quarter and 110% for the full year, with cash flow reaching SEK8 billion. ASSA ABLOY completed eight acquisitions in the quarter and 26 for the year, setting a new record. Regionally, North America experienced a 1% organic growth, while South America achieved an 8% increase. Europe saw a 2% decline, and Asia Pacific faced an 11% drop. The company continued to focus on innovation, launching over 550 new products in 2024. Moving forward, ASSA ABLOY aims to address the challenging organic growth environment while leveraging acquisition strategies to sustain growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.