Husqvarna AB (publ)
Husqvarna AB (publ) Fundamental Analysis
Husqvarna AB (publ) (HSQVY) shows weak financial fundamentals with a PE ratio of 12.95, profit margin of 3.85%, and ROE of 7.36%. The company generates $46.8B in annual revenue with weak year-over-year growth of -3.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HSQVY's fundamental strength across five key dimensions:
Efficiency Score
WeakHSQVY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHSQVY trades at attractive valuation levels.
Growth Score
ModerateHSQVY shows steady but slowing expansion.
Financial Health Score
ExcellentHSQVY maintains a strong and stable balance sheet.
Profitability Score
WeakHSQVY struggles to sustain strong margins.
Key Financial Metrics
Is HSQVY Expensive or Cheap?
P/E Ratio
HSQVY trades at 12.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HSQVY's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Husqvarna AB (publ) at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.07 times EBITDA. This is generally considered low.
How Well Does HSQVY Make Money?
Net Profit Margin
For every $100 in sales, Husqvarna AB (publ) keeps $3.85 as profit after all expenses.
Operating Margin
Core operations generate 6.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.36 in profit for every $100 of shareholder equity.
ROA
Husqvarna AB (publ) generates $3.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Husqvarna AB (publ) generates limited operating cash flow of $4.32B, signaling weaker underlying cash strength.
Free Cash Flow
Husqvarna AB (publ) produces free cash flow of $2.06B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.12 in free cash annually.
FCF Yield
HSQVY converts 8.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HSQVY Stacks Against Its Sector Peers
| Metric | HSQVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.95 | 26.71 | Better (Cheaper) |
| ROE | 7.36% | 1270.00% | Weak |
| Net Margin | 3.85% | -41697.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.73 | Neutral |
| Current Ratio | 1.74 | 10.13 | Neutral |
| ROA | 3.43% | -1511097.00% (disorted) | Weak |
HSQVY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Husqvarna AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-29.02%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-47.94%
Industry Style: Cyclical, Value, Infrastructure
Declining