Executive Summary
Hexagon AB (publ) provides information technology solutions for geospatial and industrial landscapes worldwide.
Rewards
PE ratio (28.1x) is below the Electronic industry average (28.1x)
Risk Analysis
No risks detected for HEXA B from our risk checks.
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: HEXA B has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.8%
HEXA B
1.0%
SE Electronic
1.4%
SE Market
1 Year Return
18.5%
HEXA B
20.1%
SE Electronic
23.3%
SE Market
Return vs Industry: HEXA B underperformed the Swedish Electronic industry which returned 19.9% over the past year.
Return vs Market: HEXA B underperformed the Swedish Market which returned 21.6% over the past year.
Shareholder returns
| HEXA B | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.0% | 1.4% |
| 30 Day | 6.4% | 4.1% | 3.9% |
| 90 Day | 10.5% | 11.8% | 12.2% |
| 1 Year | 19.9%18.5% | 21.7%20.1% | 28.3%23.3% |
| 3 Year | 61.4%55.8% | 47.6%41.3% | 40.0%18.9% |
| 5 Year | 101.3%89.7% | 106.1%90.0% | 48.6%17.1% |
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
1 week ago | Simply Wall St
Hexagon AB (publ) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates2 weeks ago | Simply Wall St
Hexagon AB (publ) (STO:HEXA B) Has A ROE Of 12%3 weeks ago | Simply Wall St
Hexagon (STO:HEXA B) Has A Pretty Healthy Balance SheetValuation
Is Hexagon undervalued compared to its fair value and its price relative to the market?
28.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HEXA B (SEK572) is trading above our estimate of fair value (SEK491.63)
Significantly Below Fair Value: HEXA B is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HEXA B is good value based on its PE Ratio (28.1x) compared to the Electronic industry average (28.1x).
PE vs Market: HEXA B is poor value based on its PE Ratio (28.1x) compared to the Swedish market (20.1x).
Price to Earnings Growth Ratio
PEG Ratio: HEXA B is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: HEXA B is overvalued based on its PB Ratio (3.3x) compared to the SE Electronic industry average (3.2x).
Next Steps
Future Growth
How is Hexagon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
11.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HEXA B's forecast earnings growth (11% per year) is above the savings rate (-0.4%).
Earnings vs Market: HEXA B's earnings (11% per year) are forecast to grow faster than the Swedish market (8.5% per year).
High Growth Earnings: HEXA B's earnings are forecast to grow, but not significantly.
Revenue vs Market: HEXA B's revenue (5.2% per year) is forecast to grow faster than the Swedish market (4.6% per year).
High Growth Revenue: HEXA B's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HEXA B's Return on Equity is forecast to be low in 3 years time (14.2%).
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: HEXA B has high quality earnings.
Growing Profit Margin: HEXA B's current net profit margins (18%) are lower than last year (19.4%).
Past Earnings Growth Analysis
Earnings Trend: HEXA B's earnings have grown by 11.9% per year over the past 5 years.
Accelerating Growth: HEXA B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HEXA B had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Electronic industry average (12.4%).
Return on Equity
High ROE: HEXA B's Return on Equity (11.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Hexagon's financial position?
Financial Position Analysis
Short Term Liabilities: HEXA B's short term assets (€2.1B) exceed its short term liabilities (€1.8B).
Long Term Liabilities: HEXA B's short term assets (€2.1B) do not cover its long term liabilities (€2.7B).
Debt to Equity History and Analysis
Debt Level: HEXA B's debt to equity ratio (37.1%) is considered satisfactory.
Reducing Debt: HEXA B's debt to equity ratio has reduced from 57.1% to 37.1% over the past 5 years.
Debt Coverage: HEXA B's debt is well covered by operating cash flow (48.9%).
Interest Coverage: HEXA B's interest payments on its debt are well covered by EBIT (33.2x coverage).
Balance Sheet
Inventory Level: HEXA B has a low level of unsold assets or inventory.
Debt Coverage by Assets: HEXA B'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?
1.15%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Hexagon before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HEXA B's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.58%).
High Dividend: HEXA B's dividend (1.15%) is low compared to the top 25% of dividend payers in the Swedish market (4.29%).
Stability and Growth of Payments
Stable Dividend: HEXA B's dividends per share have been stable in the past 10 years.
Growing Dividend: HEXA B's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.2%), HEXA B's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HEXA B's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Ola Rollén (54yo)
3.3yrs
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 ($USD5.47M) is above average for companies of similar size in the Swedish market ($USD1.97M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.3yrs | €5.06m | 0.078% €164.1m | |
| CFO & Executive VP | 7.4yrs | no data | no data | |
| Chief Operating Officer | 0yrs | no data | 0.0064% €13.5m | |
| Chief Technology Officer | 0yrs | no data | no data | |
| Chief Information Officer | 3.1yrs | no data | no data | |
| Investor Relations Manager | 4.3yrs | no data | no data | |
| General Counsel & Chief Compliance Officer | 0.5yrs | no data | no data | |
| Chief Marketing Officer | 5.1yrs | no data | no data | |
| VP & President of Hexagon China | 20.1yrs | no data | 0.033% €68.6m | |
| President of PPM | 3.1yrs | no data | 0.00060% €1.3m |
3.8yrs
Average Tenure
51yo
Average Age
Experienced Management: HEXA B's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.3yrs | €5.06m | 0.078% €164.1m | |
| Independent Director | 2.8yrs | €56.10k | 0.00082% €1.7m | |
| Independent Chairman of the Board | 2.8yrs | €174.00k | 0.0029% €6.1m | |
| Independent Director | 10.1yrs | €73.10k | 0.0016% €3.4m | |
| Independent Director | 2.8yrs | €78.90k | no data | |
| Independent Director | 2.8yrs | €56.10k | 0.00068% €1.4m | |
| Independent Director | 2.8yrs | €56.10k | no data |
2.8yrs
Average Tenure
54yo
Average Age
Experienced Board: HEXA B'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: HEXA B insiders have only sold shares 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: HEXA B
- Exchange: OM
- Founded: 1975
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: kr210.232b
- Shares outstanding: 367.54m
- Website: https://www.hexagon.com
Number of Employees
Location
- Hexagon AB (publ)
- Lilla Bantorget 15
- Stockholm
- Stockholm County
- 111 23
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HEXA B | OM (OMX Nordic Exchange Stockholm) | Yes | Series B Shares | SE | SEK | Sep 1992 |
| HXGB.F | OTCPK (Pink Sheets LLC) | Yes | Series B Shares | US | USD | Sep 1992 |
| 0GRX | LSE (London Stock Exchange) | Yes | Series B Shares | GB | SEK | Sep 1992 |
| HXGB | DB (Deutsche Boerse AG) | Yes | Series B Shares | DE | EUR | Sep 1992 |
| HEXABS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Series B Shares | GB | SEK | Sep 1992 |
| HEXAB N | BMV (Bolsa Mexicana de Valores) | Yes | Series B Shares | MX | MXN | Sep 1992 |
| HXGB.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Jan 2012 | |
| HXGC | DB (Deutsche Boerse AG) | ADR | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 21:36 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.