Hexagon Composites ASA

BATS-CHIXE:HEXO Stock Report

Market Cap: NOK 9.6b

Hexagon Composites Valuation

Is HEXO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HEXO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HEXO (NOK38.4) is trading below our estimate of fair value (NOK179.02)

Significantly Below Fair Value: HEXO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HEXO?

Key metric: As HEXO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HEXO. This is calculated by dividing HEXO's market cap by their current revenue.
What is HEXO's PS Ratio?
PS Ratio1.8x
SalesNOK 5.27b
Market CapNOK 9.59b

Price to Sales Ratio vs Peers

How does HEXO's PS Ratio compare to its peers?

The above table shows the PS ratio for HEXO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
JDG Judges Scientific
5x7.5%UK£680.7m
MGAM Morgan Advanced Materials
0.6x2.7%UK£727.2m
GDWN Goodwin
2.7xn/aUK£522.7m
BOY Bodycote
1.3x3.4%UK£1.1b
HEXO Hexagon Composites
1.8x15.3%NOK 9.6b

Price-To-Sales vs Peers: HEXO is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does HEXO's PS Ratio compare vs other companies in the GB Machinery Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
HMSG HMS Hydraulic Machines & Systems Group
0.08x4.0%US$81.11m
HARL Harland & Wolff Group Holdings
0.2xn/aUS$19.39m
SIXH 600 Group
0.1xn/aUS$4.32m
No more companies available in this PS range
No. of Companies4PS012345+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HEXO is expensive based on its Price-To-Sales Ratio (1.8x) compared to the UK Machinery industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is HEXO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HEXO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HEXO's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HEXO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
NOK 63.00
0%
18.7%NOK 83.00NOK 54.00n/a4
Nov ’25n/a
NOK 52.00
0%
9.0%NOK 60.00NOK 48.00n/a4
Oct ’25n/a
NOK 52.00
0%
9.0%NOK 60.00NOK 48.00n/a4
Sep ’25n/a
NOK 47.75
0%
12.4%NOK 56.00NOK 40.00n/a4
Aug ’25n/a
NOK 39.75
0%
6.3%NOK 43.00NOK 36.00n/a4
Jul ’25n/a
NOK 39.75
0%
6.3%NOK 43.00NOK 36.00n/a4
Mar ’25n/a
NOK 32.00
0%
3.1%NOK 33.00NOK 31.00n/a2
Feb ’25n/a
NOK 33.50
0%
1.5%NOK 34.00NOK 33.00n/a2
Jan ’25n/a
NOK 36.33
0%
11.1%NOK 42.00NOK 33.00n/a3
Dec ’24n/a
NOK 36.33
0%
11.1%NOK 42.00NOK 33.00n/a3
Nov ’24n/a
NOK 39.00
0%
10.9%NOK 42.00NOK 33.00n/a3
Oct ’24n/a
NOK 39.00
0%
10.9%NOK 42.00NOK 33.00n/a3
Sep ’24n/a
NOK 35.50
0%
11.0%NOK 42.00NOK 32.00n/a4
Aug ’24n/a
NOK 35.50
0%
10.1%NOK 40.00NOK 30.00n/a4
Jul ’24n/a
NOK 35.33
0%
11.6%NOK 40.00NOK 30.00n/a3
Jun ’24n/a
NOK 35.33
0%
11.6%NOK 40.00NOK 30.00n/a3
May ’24n/a
NOK 40.33
0%
1.2%NOK 41.00NOK 40.00n/a3
Apr ’24n/a
NOK 40.33
0%
1.2%NOK 41.00NOK 40.00n/a3
Mar ’24NOK 38.46
NOK 40.33
+4.9%
1.2%NOK 41.00NOK 40.00n/a3
Feb ’24n/a
NOK 33.67
0%
14.6%NOK 40.00NOK 28.00n/a3
Jan ’24n/a
NOK 33.67
0%
14.6%NOK 40.00NOK 28.00n/a3
Dec ’23n/a
NOK 33.67
0%
14.6%NOK 40.00NOK 28.00n/a3
Nov ’23n/a
NOK 33.67
0%
13.8%NOK 40.00NOK 29.00n/a3

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

Chargeurs

€240.2m

Operates as a manufacturing and services company in France, Europe, the Americas, Asia, and internationally.

0E1Y

€10.23

7D

2.2%

1Y

17.5%

Senior

UK£611.7m

Designs, manufactures, and sells high-technology components and systems for the principal original equipment manufacturers in the aerospace, defense, land vehicle, and power and energy markets in the United States, the United Kingdom, and internationally.

SNR

UK£1.50

7D

4.6%

1Y

-9.2%

Eiffage

€8.3b

Engages in the construction, property development, urban development, civil engineering, metallic construction, roads, energy systems, and concessions businesses in France and internationally.

0NPT

€86.31

7D

2.7%

1Y

-5.0%