8.95%
22.09%
27.50%
22.26%
9.74%
3.76%
72.59%

Company Description

Hexagon AB (publ) provides information technology solutions for geospatial and industrial applications 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, laser trackers and scanners, industrial metrology software, and operations management solutions.This segment's solutions are used in electronics and manufacturing, power and energy, automotive, aerospace and defense, and other industries.The GIS segment provides 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 various software applications covering areas comprising 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 incorporated in 1975 and is headquartered in Stockholm, Sweden.

Market Data

Last Price 129.6
Change Percentage 8.95%
Open 125.4
Previous Close 118.95
Market Cap ( Millions) 333607
Volume 8595358
Year High 129.6
Year Low 90.32
M A 50 107.52
M A 200 108.76

Financial Ratios

FCF Yield 3.64%
Dividend Yield 1.18%
ROE 9.71%
Debt / Equity 34.33%
Net Debt / EBIDTA 161.91%
Price To Book 2.72
Price Earnings Ratio 29.68
Price To FCF 27.49
Price To sales 5.37
EV / EBITDA 16.45

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Industrial Enterprise Solutions

Expected Growth : 7 %

What the company do ?

Why we expect these perspectives ?

Hexagon AB's Industrial Enterprise Solutions segment growth is driven by increasing demand for industrial automation, digitalization, and IoT solutions. The company's strong presence in manufacturing, process industries, and infrastructure sectors, combined with its innovative product portfolio and strategic acquisitions, contribute to its 7% growth rate.

Segment n°2 -> Geospatial Enterprise Solutions

Expected Growth : 9 %

What the company do ?

Why we expect these perspectives ?

Hexagon AB's Geospatial Enterprise Solutions segment growth is driven by increasing demand for digitalization and automation in industries such as construction, mining, and agriculture. The company's expertise in sensor, software, and autonomous technologies enables customers to create smart ecosystems, driving growth. Additionally, the rising need for accurate geospatial data and analytics for infrastructure development, urban planning, and environmental monitoring further fuels the segment's 9% growth.

Segment n°3 -> Group Expenses and Eliminations

Expected Growth : 5 %

What the company do ?

Why we expect these perspectives ?

Hexagon AB's 5% growth in Group Expenses and Eliminations is driven by increased investments in research and development, expansion of sales and marketing efforts, and higher personnel costs. Additionally, the company's strategic acquisitions and consolidation of operations have contributed to the growth, while cost savings initiatives have partially offset the increases.

Hexagon Ab (Publ) Products

Product Range What is it ?
Autonomous Solutions Hexagon's Autonomous Solutions provide a range of products and services that enable autonomous operations in various industries such as mining, construction, and agriculture.
Geospatial Mapping Hexagon's Geospatial Mapping solutions provide accurate and detailed mapping and location-based intelligence for various industries such as government, transportation, and utilities.
Industrial Metrology Hexagon's Industrial Metrology solutions provide precision measurement and inspection solutions for various industries such as aerospace, automotive, and manufacturing.
CAD/CAM Software Hexagon's CAD/CAM Software solutions provide computer-aided design and manufacturing software for various industries such as aerospace, automotive, and industrial equipment.
Sensor and Software Solutions Hexagon's Sensor and Software Solutions provide a range of sensors and software solutions for various industries such as agriculture, construction, and mining.
PPM (Project Portfolio Management) Hexagon's PPM solutions provide project portfolio management software for various industries such as construction, oil and gas, and utilities.

Hexagon AB (publ)'s Porter Forces

Hexagon AB (publ) operates in a niche market with limited substitutes, but there are some alternatives available. The company's products and services are highly specialized, which reduces the threat of substitutes.

Hexagon AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. The company's products and services are critical to its customers' operations, making it difficult for them to switch to alternative suppliers.

Hexagon AB (publ) has a moderate level of dependence on its suppliers, particularly for raw materials and components. While the company has some bargaining power due to its size and reputation, suppliers also have some leverage due to the specialized nature of the products.

The barriers to entry in Hexagon AB (publ)'s markets are relatively high, including significant capital requirements, technological expertise, and regulatory hurdles. This reduces the threat of new entrants.

Hexagon AB (publ) operates in a highly competitive market with several established players. The company faces intense competition in terms of product innovation, pricing, and customer service, which increases the intensity of rivalry.

Capital Structure

Value
Debt Weight 28.97%
Debt Cost 4.59%
Equity Weight 71.03%
Equity Cost 8.83%
WACC 7.61%
Leverage 40.78%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
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GRMN Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment …
FLEX Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions …
TEL TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas. The company operates through three …
CAP.PA Capgemini SE provides consulting, digital transformation, technology, and engineering services primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers strategy and transformation services, including …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
129.6$
Current Price
129.6$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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