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HPOL B: Future M&A Activity Will Support 75% CO2 Reduction Progress

HPOL B: Mergers And CO2 Reduction Progress Will Drive Momentum

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HPOL B
AnalystConsensusTarget
Not Invested
Published 26 Dec 2024

Update shared on 12 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-19.0%
7D
-0.5%

Analysts have made only marginal adjustments to their model inputs for HEXPOL, leaving the fair value estimate effectively unchanged at SEK 98.75. They continue to view the company’s long term growth and profitability profile as broadly in line with prior expectations.

What's in the News

  • Management reiterated that mergers and acquisitions remain a key pillar of HEXPOL's growth strategy, highlighting ample financial resources and a strong balance sheet to accelerate deals once market conditions improve (company presentation).
  • The company reported solid progress toward its 75 percent CO2 reduction target for year end, framing sustainability as a core strategic priority rather than a compliance exercise (company presentation).
  • HEXPOL is developing a new sustainability strategy with updated targets, scheduled for completion in the first quarter next year, signaling a forthcoming refresh of its medium term ESG roadmap (company presentation).
  • Geopolitical uncertainty is currently dampening M&A activity, with management noting a wait and see stance among potential counterparties that could delay near term transaction flow (company presentation).

Valuation Changes

  • Fair Value Estimate was unchanged at SEK 98.75, indicating no material impact from updated model inputs.
  • The discount rate edged down slightly from 5.71 percent to 5.70 percent, reflecting a marginally lower perceived risk profile or funding cost.
  • Revenue growth was effectively unchanged at approximately minus 0.51 percent, pointing to a stable top line outlook.
  • Net profit margin was flat at around 12.66 percent, suggesting no meaningful revisions to long term profitability expectations.
  • The future P/E was reported at 16.28x, signaling a negligible shift in the valuation multiple applied to HEXPOL's earnings.

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Disclaimer

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