OM:HEXA B

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate 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


Market Performance


7 Day Return

1.0%

HEXA B

1.1%

SE Electronic

2.1%

SE Market


1 Year Return

0.3%

HEXA B

4.0%

SE Electronic

12.1%

SE Market

Return vs Industry: HEXA B underperformed the Swedish Electronic industry which returned 4% over the past year.

Return vs Market: HEXA B underperformed the Swedish Market which returned 12.1% over the past year.


Shareholder returns

HEXA BIndustryMarket
7 Day1.0%1.1%2.1%
30 Day-4.6%-2.5%1.6%
90 Day-4.5%-2.7%3.8%
1 Year1.6%0.3%5.3%4.0%16.8%12.1%
3 Year26.0%21.6%9.0%5.8%32.3%12.4%
5 Year105.7%93.8%103.0%88.8%62.9%28.4%

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

Valuation

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

21.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HEXA B (SEK460.5) is trading above our estimate of fair value (SEK387.22)

Significantly Undervalued: HEXA B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HEXA B is poor value based on its PE Ratio (21.8x) compared to the Electronic industry average (20.2x).

PE vs Market: HEXA B is poor value based on its PE Ratio (21.8x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: HEXA B is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HEXA B is overvalued based on its PB Ratio (2.8x) compared to the SE Electronic industry average (2.7x).


Next Steps

Future Growth

How is Hexagon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEXA B's forecast earnings growth (11.2% per year) is above the savings rate (0.4%).

Earnings vs Market: HEXA B's earnings (11.2% per year) are forecast to grow faster than the Swedish market (9.3% per year).

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

Revenue vs Market: HEXA B's revenue (4.8% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: HEXA B's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HEXA B'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?

14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HEXA B's earnings have grown by 14.4% 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 (-5.3%) over the past year, making it difficult to compare to the Electronic industry average (-1.6%).


Return on Equity

High ROE: HEXA B's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: HEXA B has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: HEXA B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hexagon's financial position?


Financial Position Analysis

Short Term Liabilities: HEXA B's short term assets (€2.0B) exceeds its short term liabilities (€1.7B)

Long Term Liabilities: HEXA B's short term assets (2.0B) do not cover its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: HEXA B's debt to equity ratio (43%) is considered high

Reducing Debt: HEXA B's debt to equity ratio has reduced from 57.3% to 43% over the past 5 years.

Debt Coverage: HEXA B's debt is well covered by operating cash flow (42.8%).

Interest Coverage: HEXA B's interest payments on its debt are well covered by EBIT (63.3x 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 0.8x debt).


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.8%markettop25%4.6%industryaverage1.4%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HEXA B's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: HEXA B's dividend (1.38%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).

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 (30.1%), 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 (29.9% payout ratio).


Next Steps

Management

What is the CEO of Hexagon's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Ola Rollén (54yo)

2.9yrs

Tenure

€5,063,200

Compensation

Mr. Ola Rollén serves as Industrial Advisor at EQT Partners AB. Mr. Rollén has been the Chief Executive Officer and President of Hexagon AB since 2000. He serves as Chief Executive Officer at Intergraph Co ...


CEO Compensation Analysis

Compensation vs. Market: Ola's total compensation ($USD5.64M) is about average for companies of similar size in the Swedish market ($USD1.89M).

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


Management Age and Tenure

3.9yrs

Average Tenure

54yo

Average Age

Experienced Management: HEXA B's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: HEXA B's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buy€958,65409 Sep 19
Mattias Stenberg
EntityIndividual
Role
Senior Key Executive
President of PPM
Shares2,200
Max Price€435.75
Sell€1,729,553,83212 Mar 19
Melker Schorling Tjanste AB
EntityCompany
Shares3,722,179
Max Price€471.57

Ownership Breakdown


Management Team

  • Ola Rollén (54yo)

    CEO, President & Director

    • Tenure: 2.9yrs
    • Compensation: €5.06m
  • Jüergen Dold (57yo)

    President of Geosystems

    • Tenure: 0yrs
  • Claudio Simão (62yo)

    CTO & President of Innovation Hub

    • Tenure: 3.9yrs
  • Ed Porter (60yo)

    Chief Human Resources Officer

    • Tenure: 4.8yrs
  • Mattias Stenberg (42yo)

    President of PPM

    • Tenure: 2.8yrs
  • Robert Belkic (49yo)

    CFO & Executive VP

    • Tenure: 7.1yrs
  • Kristin Christensen (48yo)

    Chief Marketing Officer

    • Tenure: 4.8yrs
  • Maria Luthström

    Investor Relations Manager

    • Tenure: 3.9yrs
  • Robert Ashe

    Chief Information Officer

    • Tenure: 2.8yrs
  • Anthony Zana

    General Counsel

    • Tenure: 0.2yrs

Board Members

  • John Brandon (63yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €56.10k
  • Gun Nilsson (64yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: €174.00k
  • Ulrika Francke (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: €73.10k
  • Ola Rollén (54yo)

    CEO, President & Director

    • Tenure: 2.9yrs
    • Compensation: €5.06m
  • Sofia Högberg (41yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €78.90k
  • Henrik Henriksson (49yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €56.10k
  • Märta Andreen (35yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €56.10k

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: kr168.475b
  • Shares outstanding: 365.85m
  • 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)ADRUSUSDJan 2012
HXGCDB (Deutsche Boerse AG)ADRDEEURJan 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 Geospati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:06
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.