DB:HXGB

Stock Analysis Report

Executive Summary

Hexagon AB (publ) provides information technology solutions for geospatial and industrial landscapes worldwide.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Hexagon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HXGB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

HXGB

-0.7%

DE Electronic

-3.0%

DE Market


1 Year Return

-26.9%

HXGB

-28.9%

DE Electronic

-20.6%

DE Market

Return vs Industry: HXGB exceeded the German Electronic industry which returned -27.6% over the past year.

Return vs Market: HXGB underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

HXGBIndustryMarket
7 Day-3.3%-0.7%-3.0%
30 Day-26.0%-19.9%-19.1%
90 Day-28.7%-23.8%-26.2%
1 Year-26.0%-26.9%-27.4%-28.9%-18.3%-20.6%
3 Year-1.4%-4.8%-3.8%-6.9%-18.8%-25.6%
5 Year12.5%5.9%53.3%42.0%-19.9%-30.7%

Price Volatility Vs. Market

How volatile is Hexagon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hexagon undervalued compared to its fair value and its price relative to the market?

12.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HXGB (€38.91) is trading below our estimate of fair value (€45.37)

Significantly Below Fair Value: HXGB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HXGB is poor value based on its PE Ratio (20.2x) compared to the Electronic industry average (18.2x).

PE vs Market: HXGB is poor value based on its PE Ratio (20.2x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: HXGB is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: HXGB is overvalued based on its PB Ratio (2.4x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is Hexagon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HXGB's forecast earnings growth (10.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: HXGB's earnings (10.2% per year) are forecast to grow slower than the German market (14.5% per year).

High Growth Earnings: HXGB's earnings are forecast to grow, but not significantly.

Revenue vs Market: HXGB's revenue (4.2% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: HXGB's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HXGB's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Hexagon performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HXGB has high quality earnings.

Growing Profit Margin: HXGB's current net profit margins (18%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: HXGB's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: HXGB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HXGB had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Electronic industry average (-7.4%).


Return on Equity

High ROE: HXGB's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Hexagon's financial position?


Financial Position Analysis

Short Term Liabilities: HXGB's short term assets (€2.1B) exceed its short term liabilities (€1.8B).

Long Term Liabilities: HXGB's short term assets (€2.1B) do not cover its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: HXGB's debt to equity ratio (37.1%) is considered satisfactory.

Reducing Debt: HXGB's debt to equity ratio has reduced from 57.1% to 37.1% over the past 5 years.

Debt Coverage: HXGB's debt is well covered by operating cash flow (48.9%).

Interest Coverage: HXGB's interest payments on its debt are well covered by EBIT (33.2x coverage).


Balance Sheet

Inventory Level: HXGB has a low level of unsold assets or inventory.

Debt Coverage by Assets: HXGB's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Hexagon's current dividend yield, its reliability and sustainability?

1.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HXGB's dividend (1.6%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: HXGB's dividend (1.6%) is low compared to the top 25% of dividend payers in the German market (4.87%).


Stability and Growth of Payments

Stable Dividend: HXGB's dividends per share have been stable in the past 10 years.

Growing Dividend: HXGB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), HXGB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HXGB's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Ola Rollén (54yo)

3.42s

Tenure

€5,063,200

Compensation

Mr. Ola Rollén, B.Sc., serves as an Advisor at EQT Partners AB. Mr. Rollén has been the Chief Executive Officer and President of Hexagon AB and Leica Geosystems Technology A/S since 2000. Prior to joining  ...


CEO Compensation Analysis

Compensation vs Market: Ola's total compensation ($USD5.56M) is about average for companies of similar size in the German market ($USD5.24M).

Compensation vs Earnings: Ola's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ola Rollén
CEO, President & Director3.42yrs€5.06m0.078% 10.4m
Robert Belkic
CFO & Executive VP7.58yrsno datano data
Norbert Hanke
Chief Operating Officer0.17yrno data0.0064% 858.5k
Burkhard Boeckem
Chief Technology Officer0.17yrno datano data
Robert Ashe
Chief Information Officer3.25yrsno datano data
Maria Luthström
Investor Relations Manager4.42yrsno datano data
Anthony Zana
General Counsel & Chief Compliance Officer0.67yrno datano data
Kristin Christensen
Chief Marketing Officer5.25yrsno datano data
Hongquan Li
VP & President of Hexagon China20.25yrsno data0.033% 4.4m
Jüergen Dold
President of GSIno datano data0.0082% 1.1m

3.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: HXGB's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ola Rollén
CEO, President & Director3.42yrs€5.06m0.078% 10.4m
John Brandon
Independent Director2.92yrs€56.10k0.00082% 109.5k
Gun Nilsson
Independent Chairman of the Board2.92yrs€174.00k0.0034% 460.6k
Ulrika Francke
Independent Director10.25yrs€73.10k0.0016% 217.6k
Sofia Högberg
Independent Director2.92yrs€78.90kno data
Henrik Henriksson
Independent Director2.92yrs€56.10k0.0022% 295.1k
Märta Andreen
Independent Director2.92yrs€56.10kno data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Board: HXGB's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HXGB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hexagon AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hexagon AB (publ)
  • Ticker: HXGB
  • Exchange: DB
  • Founded: 1975
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: kr146.212b
  • Listing Market Cap: kr13.351b
  • Shares outstanding: 367.55m
  • Website: https://www.hexagon.com

Number of Employees


Location

  • Hexagon AB (publ)
  • Lilla Bantorget 15
  • Stockholm
  • Stockholm County
  • 111 23
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEXA BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKSep 1992
HXGB.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDSep 1992
0GRXLSE (London Stock Exchange)YesSeries B SharesGBSEKSep 1992
HXGBDB (Deutsche Boerse AG)YesSeries B SharesDEEURSep 1992
HEXABSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKSep 1992
HEXAB NBMV (Bolsa Mexicana de Valores)YesSeries B SharesMXMXNSep 1992
HXGB.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 SHSUSUSDJan 2012
HXGCDB (Deutsche Boerse AG)ADR EACH REPR 1 SHSDEEURJan 2012

Biography

Hexagon AB (publ) provides information technology solutions for geospatial and industrial landscapes worldwide. The company operates through two segments, Industrial Enterprise Solutions (IES) and Geospatial Enterprise Solutions (GIS). The IES segment offers metrology systems that incorporate the in sensor technology for measurements, as well as computer-aided design, computer-aided manufacturing, and computer-aided engineering software. Its solutions include coordinate measuring machines, optical and portable scanners, industrial metrology software, and life cycle engineering software solutions. This segment’s solutions are used in electronics and manufacturing, power and energy, automotive, aerospace and defense, and other industries. The GIS segment offers sensors for capturing data from land and air, as well as for positioning through satellites; and GIS software for the creation of 3D maps and models, which are used for decision-making in a range of software applications covering areas, such as surveying, construction, public safety, and agriculture. Its solutions comprise laser scanner, airborne camera, unmanned aerial vehicle, mobile mapping technology, and precise positioning solutions. This segment’s solutions are used in surveying, infrastructure and construction, natural resources, public safety, aerospace and defense, and other industries. The company was formerly known as Eken Industri & Handel AB and changed its name to Hexagon AB (publ) in 1993. Hexagon AB (publ) was founded in 1975 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 01:29
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.