OB:HEX

Stock Analysis Report

Hexagon Composites

Executive Summary

Hexagon Composites ASA, together with its subsidiaries, designs, develops, manufactures, and sells composite pressure cylinders for mobility, industrial, and consumer applications in Europe, North America, South-East Asia, the Middle East, and internationally.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HEX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

HEX

-1.6%

NO Machinery

0.2%

NO Market


1 Year Return

5.0%

HEX

0.7%

NO Machinery

-0.7%

NO Market

Return vs Industry: HEX exceeded the Norwegian Machinery industry which returned 0.7% over the past year.

Return vs Market: HEX exceeded the Norwegian Market which returned -0.7% over the past year.


Shareholder returns

HEXIndustryMarket
7 Day-3.2%-1.6%0.2%
30 Day2.7%1.7%-2.1%
90 Day4.0%2.4%1.2%
1 Year5.0%5.0%5.6%0.7%4.5%-0.7%
3 Year19.6%18.0%5.6%0.5%33.4%16.6%
5 Year58.0%52.0%45.4%23.0%58.2%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

55.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HEX (NOK34.8) is trading above our estimate of fair value (NOK17.47)

Significantly Below Fair Value: HEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HEX is poor value based on its PE Ratio (55.2x) compared to the Machinery industry average (17.3x).

PE vs Market: HEX is poor value based on its PE Ratio (55.2x) compared to the Norwegian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: HEX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HEX is overvalued based on its PB Ratio (2.9x) compared to the NO Machinery industry average (1.1x).


Next Steps

Future Growth

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

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEX's forecast earnings growth (37.5% per year) is above the savings rate (0.7%).

Earnings vs Market: HEX's earnings (37.5% per year) are forecast to grow faster than the Norwegian market (18.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HEX's revenue (15.7% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: HEX's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEX's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Hexagon Composites performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEX has a large one-off gain of NOK69.6M impacting its December 31 2019 financial results.

Growing Profit Margin: HEX's current net profit margins (3.2%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: HEX's earnings have grown by 10.1% per year over the past 5 years.

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

Earnings vs Industry: HEX had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Machinery industry average (-4.4%).


Return on Equity

High ROE: HEX's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hexagon Composites's financial position?


Financial Position Analysis

Short Term Liabilities: HEX's short term assets (NOK1.5B) exceed its short term liabilities (NOK855.0M).

Long Term Liabilities: HEX's short term assets (NOK1.5B) do not cover its long term liabilities (NOK1.6B).


Debt to Equity History and Analysis

Debt Level: HEX's debt to equity ratio (58.2%) is considered high.

Reducing Debt: HEX's debt to equity ratio has reduced from 62.4% to 58.2% over the past 5 years.

Debt Coverage: HEX's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: HEX's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet

Inventory Level: HEX has a high level of physical assets or inventory.

Debt Coverage by Assets: HEX's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.29%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.8%markettop25%6.2%industryaverage3.3%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HEX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HEX is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HEX's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jon Engeset 0

kr5,604,000

Compensation

Mr. Jon Erik Engeset has been the Chief Executive Officer and President at Hexagon Composites ASA. Mr. Engeset served as Chief Executive Officer of Saferoad AS for 11 years and served as its President. Pri ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD604.00K) is about average for companies of similar size in the Norwegian market ($USD567.74K).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jon Engeset
President & CEO0yrskr5.60m0.15% NOK9.2m
David Bandele
Chief Financial Officer6.1yrskr3.14m0.049% NOK3.1m
Jack Schimenti
Executive Vice President0yrskr3.75m0.054% NOK3.4m
Skjalg Stavheim
President of Hexagon Ragasco0yrskr3.69m0.036% NOK2.3m
Michael Kleschinski
President of Hexagon Purus0yrskr3.23m0.023% NOK1.4m
Heiko Chudzick
Executive Vice President of Operations1.1yrskr2.07mno data
Morten Holum
Chief Operating Officer0.4yrsno datano data
Gunnar Engkrog
Head of Group Accounting0yrsno datano data
Hiva Ghiri
Vice President of Investor Relations1.8yrsno datano data
Rick Rashilla
Head of Hydrogen Business Development3.9yrsno data0.032% NOK2.0m

1.8yrs

Average Tenure

Experienced Management: HEX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Ownership

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


Insider Trading Volume

Insider Buying: HEX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

Hexagon Composites ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hexagon Composites ASA
  • Ticker: HEX
  • Exchange: OB
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr6.319b
  • Shares outstanding: 181.57m
  • Website: https://www.hexagongroup.com

Number of Employees


Location

  • Hexagon Composites ASA
  • Korsegata 4B
  • PO Box 836
  • Ålesund
  • Møre og Romsdal
  • 6002
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEXOB (Oslo Bors)YesOrdinary SharesNONOKJan 1997
0EOFLSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1997
HXGC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1997
2HXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1997
HEXOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1997

Biography

Hexagon Composites ASA, together with its subsidiaries, designs, develops, manufactures, and sells composite pressure cylinders for mobility, industrial, and consumer applications in Europe, North America, South-East Asia, the Middle East, and internationally. It operates through Hexagon Purus, Hexagon Mobile Pipeline & Other, and Hexagon Ragasco LPG segments. The company develops and supplies high-pressure composite cylinders and solutions for a range of hydrogen applications, as well as compressed natural gas (CNG) fueled light-duty vehicles; and high-pressure composite storage and transportation cylinders and modules for CNG and biogas. It also manufactures low-pressure composite cylinders for propane gas. The company is headquartered in Ålesund, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:40
End of Day Share Price2020/02/21 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.