Hexagon AB (publ)
Hexagon AB (publ) Fundamental Analysis
Hexagon AB (publ) (HXGBF) shows weak financial fundamentals with a PE ratio of 42.31, profit margin of 11.37%, and ROE of 6.00%. The company generates $5.2B in annual revenue with weak year-over-year growth of 0.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HXGBF's fundamental strength across five key dimensions:
Efficiency Score
WeakHXGBF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHXGBF shows balanced valuation metrics.
Growth Score
WeakHXGBF faces weak or negative growth trends.
Financial Health Score
ExcellentHXGBF maintains a strong and stable balance sheet.
Profitability Score
WeakHXGBF struggles to sustain strong margins.
Key Financial Metrics
Is HXGBF Expensive or Cheap?
P/E Ratio
HXGBF trades at 42.31 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HXGBF's PEG of -6.21 indicates potential undervaluation.
Price to Book
The market values Hexagon AB (publ) at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.52 times EBITDA. This signals the market has high growth expectations.
How Well Does HXGBF Make Money?
Net Profit Margin
For every $100 in sales, Hexagon AB (publ) keeps $11.37 as profit after all expenses.
Operating Margin
Core operations generate 24.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.00 in profit for every $100 of shareholder equity.
ROA
Hexagon AB (publ) generates $3.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hexagon AB (publ) generates strong operating cash flow of $1.56B, reflecting robust business health.
Free Cash Flow
Hexagon AB (publ) generates strong free cash flow of $1.10B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.43 in free cash annually.
FCF Yield
HXGBF converts 4.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How HXGBF Stacks Against Its Sector Peers
| Metric | HXGBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.31 | 35.29 | Worse (Expensive) |
| ROE | 6.00% | 1050.00% | Weak |
| Net Margin | 11.37% | 5920942259.00% | Weak |
| Debt/Equity | 0.40 | 0.46 | Neutral |
| Current Ratio | 1.01 | 4.96 | Neutral |
| ROA | 3.61% | -295004.00% (disorted) | Weak |
HXGBF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hexagon AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.11%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-4.27%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
19.08%
Industry Style: Growth, Innovation, High Beta
High Growth