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1. Company Snapshot

1.a. Company Description

ASSA ABLOY AB (publ) provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania.The company offers mechanical and electromechanical locks, digital door locks, cylinders, door fittings, security doors, door frames, access control devices, and fire doors, as well as hardware products.It also provides identity solutions, including identity and access management, biometrics, authenticity and brand protection products, contactless RFID tags and transponders, and government IDs to companies, and government and state institutions, as well as healthcare, education, and financial industries; and secure access solutions for hotels, cruise ships, student accommodations, and elderly care facilities.


In addition, the company offers entrance automation products, services, and components, such as automatic swing, sliding, and revolving doors; industrial doors; garage doors; high-performance doors; docking solutions; hangar doors; gate automation products; components for overhead sectional doors and sensors; and high security fencings and gates.The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands.It sells its products through distributors, wholesalers, and home improvement stores.


ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

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1.b. Last Insights on ASSA

ASSA ABLOY's recent performance was driven by growth in annual revenue and net income. The company's strategic acquisitions, including SiteOwl, a cloud-based platform for physical security lifecycle management, and Kentix, a German designer of monitoring and access control products for datacenters, have expanded its offerings. Additionally, partnerships, such as with Transact + CBORD to improve campus security with mobile-enabled wireless access, have contributed to its growth. The company's Q3 2025 report is expected to provide further insights into its performance.

1.c. Company Highlights

2. ASSA ABLOY Delivers Robust Q2 Performance with Organic and Acquired Growth

ASSA ABLOY reported a strong second-quarter performance, driven by a combination of organic growth, strategic acquisitions, and robust operational execution. The company achieved total sales of SEK 38 billion, reflecting a 3% organic growth and a 5% contribution from acquisitions. The EBITA margin expanded to 17.2%, exceeding the company's 16-17% target bandwidth. Cash flow was particularly strong, reaching SEK 5.5 billion with a cash conversion rate of 103%, underscoring the company's ability to generate liquidity from its operations. Nico Delvaux, CEO, highlighted the company's decentralized organization as a key competitive advantage, enabling it to navigate uncertain market conditions effectively.

Publication Date: Jul -19

📋 Highlights
  • Strong Q2 Performance: 3% organic growth and 17.2% EBITA margin, with SEK 38 billion in sales.
  • Americas Growth: 4% organic growth driven by high single-digit growth in North America Non-Residential.
  • M&A Activity: 5 acquisitions completed, representing SEK 4.4 billion in annualized sales.
  • Cash Flow Strength: SEK 5.5 billion in cash flow with 103% cash conversion.
  • Price Increases: 4-5% price increases planned in the U.S. to offset tariffs, with an additional 1% expected in H2.

Regional Performance: Americas Shine While EMEIA and APAC Lag

The Americas division emerged as a standout performer, delivering 4% organic growth, driven by high single-digit growth in North America's non-residential sector. However, the residential segment in North America remained flat, reflecting ongoing challenges in the housing market. In contrast, the EMEIA and Asia Pacific regions experienced declines, with APAC's residential market dropping by double digits. Despite these challenges, the company remains optimistic about the non-residential segment, particularly in the Americas, where institutional verticals such as education and healthcare continue to drive demand.

Operational Efficiency and Pricing Dynamics

ASSA ABLOY demonstrated strong operational leverage, with a volume component of 1% and a price component of 2%, contributing to a total growth of 3%. Erik Pieder, CFO, noted that pricing dynamics have started to compensate for tariffs, particularly in the U.S., where the company is targeting a 4-5% price increase to fully offset tariff impacts. The company also highlighted its ongoing cost-saving initiatives, including lean activities and automation, which have bolstered margins. Additionally, the company completed five acquisitions during the quarter, representing annualized sales of SEK 4.4 billion, further enhancing its growth trajectory.

Valuation Perspective: Premium Pricing Reflects Growth Prospects

ASSA ABLOY's valuation metrics reflect its strong financial performance and growth prospects. The stock currently trades at a P/E ratio of 24.29 and an EV/EBITDA of 14.1, indicating a premium valuation compared to industry peers. This premium is justified by the company's ability to deliver consistent organic growth, strong cash flow generation, and its strategic acquisitions. While the stock's P/S ratio of 2.2 suggests that investors are pricing in continued revenue growth, the company's ability to maintain its margin expansion and navigate macroeconomic uncertainties will be critical in sustaining its valuation.

3. NewsRoom

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Angle Advisors announces International Door Products has been acquired by ASSA ABLOY

Dec -04

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Lukasz Nowiński appointed Managing Director of SPIE Central Europe

Dec -03

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ALRM vs. ASAZY: Which Stock Is the Better Value Option?

Nov -25

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Assessing ASSA ABLOY (OM:ASSA B) Valuation Following Recent Share Price Strength

Nov -24

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Industrial Sectional Door Industry Report 2025: Market to Reach $2.75 Billion by 2030, Driven by Hormann, ASSA ABLOY, KONE, Griffon, Sanwa, and StellaGroup Leading

Nov -24

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ASSA ABLOY acquires International Door Products in the US

Nov -24

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ASSA ABLOY hosts its Capital Markets Day

Nov -19

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ASSA ABLOY acquires Metal Products Inc. in the US

Oct -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.10%)

6. Segments

Entrance Systems

Expected Growth: 5.0%

The Entrance Systems segment is expected to grow steadily due to increasing demand for automated entrance solutions in commercial and residential sectors. Urbanization and construction activities will drive growth.

Americas

Expected Growth: 3.0%

The Americas segment is expected to experience moderate growth due to steady demand from the US market. Growth will be driven by increasing adoption of electronic access control solutions.

EMEIA

Expected Growth: 4.0%

The EMEIA segment is expected to grow steadily due to a mix of mature and emerging markets. Eastern European and Middle Eastern markets are expected to drive growth.

Asia Pacific

Expected Growth: 8.0%

The Asia Pacific segment is expected to experience high growth due to rapid urbanization and infrastructure development. China and India are expected to drive growth.

Global Technologies

Expected Growth: 6.0%

The Global Technologies segment is expected to experience above-average growth due to increasing demand for integrated security solutions. Large-scale projects will drive growth.

Other

Expected Growth: 2.0%

The Other segment is expected to experience low growth due to its diversified and smaller nature. Some businesses may see decline, while others grow.

7. Detailed Products

Entrance Systems

ASSA ABLOY's Entrance Systems provide a comprehensive range of automatic doors, revolving doors, and manual doors for various applications.

Global Technologies

ASSA ABLOY's Global Technologies offer a range of electronic locks, digital door locks, and access control systems.

EMEA (Europe, Middle East, and Africa) Locks

ASSA ABLOY's EMEA Locks provide a range of mechanical locks, cylinders, and padlocks for various applications.

Americas Locks

ASSA ABLOY's Americas Locks offer a range of mechanical locks, electronic locks, and digital locks for various applications.

Asia Pacific Locks

ASSA ABLOY's Asia Pacific Locks provide a range of mechanical locks, electronic locks, and digital locks for various applications.

Identification Technology

ASSA ABLOY's Identification Technology offers a range of identification solutions, including biometric authentication and smart cards.

8. ASSA ABLOY AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ASSA ABLOY AB (publ) is medium due to the presence of alternative products and services in the security solutions market.

Bargaining Power Of Customers

The bargaining power of customers for ASSA ABLOY AB (publ) is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ASSA ABLOY AB (publ) is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for ASSA ABLOY AB (publ) is low due to the high barriers to entry in the security solutions market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for ASSA ABLOY AB (publ) is high due to the presence of several established players in the security solutions market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.04%
Debt Cost 5.48%
Equity Weight 59.96%
Equity Cost 7.96%
WACC 6.97%
Leverage 66.78%

11. Quality Control: ASSA ABLOY AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aena

A-Score: 7.5/10

Value: 6.7

Growth: 7.1

Quality: 8.2

Yield: 6.9

Momentum: 6.5

Volatility: 9.3

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Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

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Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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ASSA ABLOY

A-Score: 5.2/10

Value: 2.4

Growth: 6.8

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

360.9$

Current Price

360.9$

Potential

-0.00%

Expected Cash-Flows