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Hexagon AB (HXGBY)
:HXGBY
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Hexagon AB
(OTC:HXGBY)75Outperform
Hexagon AB (HXGBY) vs. S&P 500 (SPY)
Market Cap
$31.16B
Dividend Yield0.67%
Average Volume (3M)229.73K
Price to Earnings (P/E)28.7
Beta (1Y)1.19
Revenue Growth1.33%
EPS Growth18.46%
CountryUS
Employees13,249
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.41
Shares Outstanding2,595,227,800
10 Day Avg. Volume396,376
30 Day Avg. Volume229,727
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)N/A
Price to Sales (P/S)5.37
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
Hexagon AB Business Overview & Revenue Model
Company DescriptionHexagon AB (HXGBY) is a leading global provider of digital reality solutions, combining sensor, software, and autonomous technologies. The company operates in various sectors including geospatial, industrial manufacturing, and infrastructure, offering a wide range of products and services that enable precision measurement and data management. Hexagon's core offerings include surveying and mapping equipment, CAD software, and machine control solutions, serving industries such as construction, mining, agriculture, and public safety.
How the Company Makes MoneyHexagon AB generates revenue through the sale of its advanced technology solutions, including hardware, software, and related services. The company's key revenue streams include the sale of surveying and mapping equipment, which is essential for construction and infrastructure projects, and its extensive portfolio of software solutions that support design and data analysis across multiple industries. Additionally, Hexagon benefits from recurring revenue through software subscriptions, maintenance contracts, and consultancy services. Strategic partnerships and acquisitions also play a significant role in expanding its market reach and enhancing its product offerings, thereby contributing to its revenue growth.
Hexagon AB Financial Statement Overview
Summary
Hexagon AB exhibits strong financial performance with robust profitability, efficient balance sheet management, and solid cash flows. The company's profitability metrics, such as a growing net profit margin and improved return on equity, highlight its ability to generate profits efficiently. The balance sheet shows a moderate leverage position, and strong cash flow generation enhances financial flexibility.Income Statement
Hexagon AB shows strong profitability with a consistent gross profit margin around 66%, and a net profit margin increasing to 18.95% in 2024 from 15.81% in 2023. The company experienced a slight decline in revenue over the last year but has shown solid EBIT and EBITDA margins, indicating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.34, suggesting moderate leverage. The equity ratio is robust at 62.53%, providing a solid buffer against liabilities. The return on equity improved to 9.17% in 2024, indicating efficient use of equity to generate profits.75
Positive
Cash Flow
Hexagon AB demonstrates strong cash flow health, with a significant increase in free cash flow to net income ratio over recent years. Operating cash flow covers net income comfortably, indicating good cash earnings quality. Free cash flow has grown notably, enhancing financial flexibility.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.40B | 5.44B | 5.16B | 4.34B | 3.76B | Gross Profit |
| 3.61B | 3.54B | 3.36B | 2.80B | 2.37B | EBIT |
| 1.43B | 1.22B | 1.29B | 1.01B | 787.00M | EBITDA |
| 2.02B | 1.78B | 1.75B | 1.58B | 1.32B | Net Income Common Stockholders |
| 1.02B | 858.90M | 1.01B | 801.60M | 618.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 663.80M | 547.10M | 486.30M | 472.10M | 397.40M | Total Assets |
| 17.85B | 16.88B | 16.48B | 14.10B | 10.70B | Total Debt |
| 3.83B | 4.08B | 3.87B | 2.94B | 2.65B | Net Debt |
| 3.17B | 3.67B | 3.48B | 2.51B | 2.32B | Total Liabilities |
| 6.65B | 6.84B | 6.61B | 5.33B | 4.75B | Stockholders Equity |
| 11.16B | 10.01B | 9.83B | 8.73B | 5.93B |
| Cash Flow | Free Cash Flow | |||
| 1.06B | 743.80M | 763.30M | 898.70M | 909.90M | Operating Cash Flow |
| 1.68B | 1.37B | 1.33B | 1.32B | 1.30B | Investing Cash Flow |
| -799.60M | -1.03B | -1.80B | -1.17B | -1.18B | Financing Cash Flow |
| -764.10M | -249.30M | 493.30M | -86.50M | -188.70M |
Hexagon AB Technical Analysis
Neutral
11.58
Price Trends
10.90
Positive
10.12
Positive
10.32
Positive
Market Momentum
0.17
Positive
52.09
Neutral
84.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXGBY, the sentiment is Neutral. The current price of 11.58 is below the 20-day moving average (MA) of 11.74, above the 50-day MA of 10.90, and above the 200-day MA of 10.32, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HXGBY.
Hexagon AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $42.20B | 30.04 | 19.00% | 1.36% | 20.44% | 9.05% | |
75 Outperform | $31.16B | 28.73 | 9.78% | 0.67% | 1.33% | 18.46% | |
75 Outperform | $11.08B | 24.75 | 35.36% | 1.43% | -4.26% | -13.42% | |
69 Neutral | $30.57B | 34.41 | 26.22% | 1.85% | -11.28% | -23.69% | |
66 Neutral | $16.97B | 11.32 | 29.37% | ― | -3.04% | 388.42% | |
62 Neutral | $15.04B | 28.77 | 15.95% | ― | 8.07% | 78.02% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
HXGBY
Hexagon AB
11.58
-0.52
-4.30%
GRMN
Garmin
215.32
71.82
50.05%
LECO
Lincoln Electric Holdings
197.61
-51.59
-20.70%
ROK
Rockwell Automation
270.37
-9.19
-3.29%
TRMB
Trimble
66.51
3.67
5.84%
ZBRA
Zebra Tech
283.36
3.13
1.12%
Hexagon AB Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 7.12% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Hexagon has navigated a challenging market environment with modest growth and strong cash management. While certain segments like software and acquisitions performed well, flat annual revenues and weaknesses in key markets were notable challenges.Highlights
Modest Organic Growth
Hexagon reported a modest organic growth of 1% in Q4, with strong growth in software and new product launches offsetting weaknesses in key markets.
Strong Cash Conversion
The company achieved a cash conversion of 116% for Q4, reflecting operational improvements and focus on cash flow management.
Dividend Increase
The Board proposed an 8% increase in the dividend to EUR0.14 per share for the fiscal year.
Software Revenue Growth
Recurring software revenues grew by 7% organically during the quarter, indicating strong momentum in the software product lines.
Successful Acquisitions
Hexagon made several acquisitions, including companies like indurad and Geomagic, to strengthen market leadership and expand technological capabilities.
Lowlights
Flat Revenue for Fiscal Year 2024
Hexagon reported flat revenues for the full year 2024, reflecting challenges in key market environments.
Weakness in Key Markets
Continued weakness in global automotive markets and construction markets, particularly in EMEA and North America.
Decline in Autonomous Solutions
Revenues in the Autonomous Solutions segment declined by 2% during the quarter, reflecting a tough comparative year and a different product mix.
Company Guidance
During Hexagon's fourth quarter of fiscal year 2024, the company reported 1% organic growth, driven by robust software sales and new product launches despite challenges in key markets. The gross margin remained strong at 67%, attributed to innovation-led pricing and a favorable product mix, while the operating margin was at 31%. The cash conversion rate for the quarter was notably high at 116%, reflecting operational improvements and seasonal factors. For the full year, Hexagon's revenues were flat, maintaining a 30% operating margin and achieving a cash conversion of 91%, surpassing the annual target of 80%-90%. The board proposed an 8% increase in the dividend to EUR 0.14 per share, supported by several strategic acquisitions to bolster market leadership.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.