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

13.8%

OM:HEXA B

9.7%

SE Electronic

2.0%

SE Market


1 Year Return

-5.2%

OM:HEXA B

-1.3%

SE Electronic

1.6%

SE Market

HEXA B underperformed the Electronic industry which returned -1.3% over the past year.

HEXA B underperformed the Market in Sweden which returned 2.8% over the past year.


Share holder returns

HEXA BIndustryMarket
7 Day13.8%9.7%2.0%
30 Day13.1%10.6%6.4%
90 Day2.8%1.9%1.7%
1 Year-4.1%-5.2%-0.03%-1.3%5.9%1.6%
3 Year39.7%34.9%14.7%11.4%30.8%11.2%
5 Year122.5%109.6%113.5%98.4%53.0%20.6%

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 based on future cash flows and its price relative to the stock market?

23.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hexagon's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hexagon's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hexagon is overvalued based on earnings compared to the SE Electronic industry average.

Hexagon is overvalued based on earnings compared to the Sweden market.


Price Based on Expected Growth

Hexagon is poor value based on expected growth next year.


Price Based on Value of Assets

Hexagon is overvalued based on assets compared to the SE Electronic industry average.


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hexagon's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Hexagon's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

Hexagon's revenue growth is expected to exceed the Sweden market average.

Hexagon's earnings growth is expected to exceed the Sweden market average.

Hexagon's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Hexagon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Hexagon's year on year earnings growth rate has been positive over the past 5 years.

Hexagon's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hexagon's 1-year earnings growth is negative, it can't be compared to the SE Electronic industry average.


Return on Equity

Hexagon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hexagon used its assets more efficiently than the SE Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Hexagon's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hexagon's financial position?


Financial Position Analysis

Hexagon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hexagon's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Hexagon's level of debt (43%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.3% vs 43% today).

Debt is well covered by operating cash flow (42.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 63.3x coverage).


Balance Sheet

Low level of unsold assets.

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?

1.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hexagon's pays a lower dividend yield than the bottom 25% of dividend payers in Sweden (1.85%).

Hexagon's dividend is below the markets top 25% of dividend payers in Sweden (4.81%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Ola Rollén (54yo)

2.8yrs

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

Ola's remuneration is higher than average for companies of similar size in Sweden.

Ola's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

The tenure for the Hexagon management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Hexagon board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Hexagon individual insiders 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: 2.8yrs
    • Compensation: €5.06m
  • Jüergen Dold (57yo)

    President of Geosystems

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

    CTO & President of Innovation Hub

    • Tenure: 3.8yrs
  • Ed Porter (60yo)

    Chief Human Resources Officer

    • Tenure: 4.7yrs
  • Mattias Stenberg (42yo)

    President of PPM

    • Tenure: 2.7yrs
  • Robert Belkic (49yo)

    CFO & Executive VP

    • Tenure: 7yrs
  • Kristin Christensen (48yo)

    Chief Marketing Officer

    • Tenure: 4.7yrs
  • Maria Luthström

    Investor Relations Manager

    • Tenure: 3.8yrs
  • Robert Ashe

    Chief Information Officer

    • Tenure: 2.7yrs
  • Anthony Zana

    General Counsel

    • Tenure: 0.08yrs

Board Members

  • John Brandon (63yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: €56.10k
  • Gun Nilsson (64yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: €174.00k
  • Ulrika Francke (63yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: €73.10k
  • Ola Rollén (54yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: €5.06m
  • Sofia Högberg (41yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: €78.90k
  • Henrik Henriksson (49yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: €56.10k
  • Märta Andreen (35yo)

    Director

    • Tenure: 2.3yrs
    • 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: kr180.548b
  • 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)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 Geospati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:56
End of Day Share Price2019/09/13 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.