Hexagon AB

Hexagon AB maintains a debt-to-equity ratio of 0.4, indicating a relatively conservative capital structure. However, the company's liquidity position is assessed as medium, with a current ratio of 0.91, suggesting limited short-term liquidity cushion. Free cash flow is negative at -117.9 million EUR, driven by capital expenditures of -302.1 million EUR, which may signal ongoing investment in growth initiatives.

Profitability metrics show a return on equity (ROE) of 2.49% and a return on assets (ROA) of 1.49%, both below the industry median for Electronic Equipment & Parts. This suggests Hexagon is underperforming in asset utilization and equity returns relative to its peers.

The company's revenue is concentrated in disclosed segments, with no specific geographic breakdown provided in the latest financials. However, the absence of geographic diversification data raises questions about potential regional concentration risk.

Hexagon reported revenue of 1.3534 billion EUR, with operating income of 360.5 million EUR. While the company is profitable, the outlook for the current fiscal year shows no significant revenue growth, with a flat trajectory expected. Analysts have assigned a mean price target of 116.21 EUR, with a median of 112.50 EUR, reflecting a generally neutral sentiment.

Risk factors include a negative net cash position after subtracting total debt, which could constrain operational flexibility. Dilution risk is assessed as low, with no near-term pressure expected, and no recent issuance or ATM activity reported. The company's risk assessment does not indicate any material regulatory or geopolitical exposure, though ongoing industry trends in automation and digital manufacturing could influence future performance.

Recent filings and transcripts have not revealed any material events or strategic shifts. The company remains focused on its core industrial software and geospatial solutions, with no significant new product launches or acquisitions disclosed in the latest data.

The company's 19.1% net margin ranks as best-in-class, far surpassing the 3.5% median for its peer group of 475 companies.

Hexagon generated a 5.7% revenue CAGR over four years, indicating consistent top-line growth despite recent volatility in net income.

With a cash conversion ratio of 2.98, Hexagon performs above the 75th percentile of its cohort, highlighting superior cash generation efficiency.

Analysts maintain a mean price target of 116.21, suggesting potential upside relative to current market expectations for the stock.

The company carries a high credit risk flag, indicating potential vulnerabilities in its debt servicing capacity or financial stability.

Hexagon's debt-to-equity ratio of 0.4 is below the cohort median, but long-term debt increased to EUR 4.06 billion in FY2026.

Revenue €963.6M, +0,2% YoY; Operating income +815,5% YoY.

• ▍Revenue €963.6M, +0,2% YoY
• ▍Operating income +815,5% YoY
• ▍Net income +750,1% YoY
• ▍Free cash flow +944,1% YoY
• ▍Net margin 166.8%

Revenue €1.43B, −1,3% YoY; Operating income −11,1% YoY.

• ▍Revenue €1.43B, −1,3% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −18,9% YoY
• ▍Free cash flow −12,4% YoY
• ▍Net margin 16.6%

Revenue €1.30B, +0,2% YoY; Operating income −103,9% YoY.

• ▍Revenue €1.30B, +0,2% YoY
• ▍Operating income −103,9% YoY
• ▍Net income −114,4% YoY
• ▍Free cash flow −118,5% YoY
• ▍Net margin -2.6%

Revenue €1.37B, +1,2% YoY; Operating income −13,1% YoY.

• ▍Revenue €1.37B, +1,2% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −12,7% YoY
• ▍Free cash flow −37,3% YoY
• ▍Net margin 16.4%

Revenue €961.5M; Operating income €198.9M.

• ▍Revenue €961.5M
• ▍Operating income €198.9M
• ▍Net margin 19.7%

Revenue €1.45B; Operating income €401.4M.

• ▍Revenue €1.45B
• ▍Operating income €401.4M
• ▍Net margin 20.2%

Revenue €1.30B; Operating income €334.4M.

• ▍Revenue €1.30B
• ▍Operating income €334.4M
• ▍Net margin 18.1%

Revenue €1.35B; Operating income €360.5M.

• ▍Revenue €1.35B
• ▍Operating income €360.5M
• ▍Net margin 19.1%

Revenue €5.42B, +0,4% YoY; Operating income −46,4% YoY.

• ▍Revenue €5.42B, +0,4% YoY
• ▍Operating income −46,4% YoY
• ▍Net income −39,7% YoY
• ▍Free cash flow −62,8% YoY
• ▍Net margin 11.4%

Revenue €5.40B, −0,7% YoY; Operating income +21,9% YoY.

• ▍Revenue €5.40B, −0,7% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +19,1% YoY
• ▍Free cash flow +37,6% YoY
• ▍Net margin 18.9%

Revenue €5.44B, +5,1% YoY; Operating income −5,0% YoY.

• ▍Revenue €5.44B, +5,1% YoY
• ▍Operating income −5,0% YoY
• ▍Net income −14,8% YoY
• ▍Free cash flow −29,7% YoY
• ▍Net margin 15.8%

Revenue €5.18B, +19,1% YoY; Operating income +27,6% YoY.

• ▍Revenue €5.18B, +19,1% YoY
• ▍Operating income +27,6% YoY
• ▍Net income +25,7% YoY
• ▍Free cash flow +10,9% YoY
• ▍Net margin 19.5%