One-glance verdict
Undervalued
$29.17 our estimate vs market $19.86
Wall Street consensus: $21.10 (-27.7% lower than our fair-value estimate)
32% below our estimate, below the bear case
Fundamentals snapshot
ASSA ABLOY AB (publ)
ASAZY · PNK · Industrials · Security & Protection Services
Current price
$19.86
52-week range
$16.82 - $21.98
Market cap
$44.12B
Balance sheet
Watch
7.12x Adequate
Net cash $0.00. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 15.3% on equity, ahead of 40% of its peers.
- Risk Stock trades 974.0% above its 5-year average P/E.
- Risk Net debt grew 110.9% over 3 years.
What this company does
ASSA ABLOY AB (publ)
ASSA ABLOY makes a wide variety of things that let people open and close doors, from smart locks for your home to big industrial doors for factories. Most of their money comes from selling these security and access products to businesses and homeowners, and it matters because it shows how much people and companies need to keep their spaces secure and controlled.
How the company got here
ASSA ABLOY AB (publ) has a long history, tracing its roots back to 1881. It grew through a series of acquisitions and strategic expansions, eventually becoming a global leader in access solutions. The company's focus has always been on providing security and convenience through innovative door and hardware products. This steady growth and acquisition strategy has shaped ASSA ABLOY into the diversified company it is today, operating across various markets worldwide.
What it actually does
ASSA ABLOY AB (publ) makes and sells products that allow people to open and secure doors. Think of everything from the locks on your front door at home to the complex electronic access systems used in large office buildings or hospitals. They also make the doors themselves, like sturdy steel doors for businesses or elegant wooden doors for homes, as well as the hardware that goes with them, such as handles and hinges. Essentially, they provide solutions for controlling who can get in and out of any given space, making things secure and easy to manage.
Europe, Middle East, India, and Africa (EMEIA)
This division is a significant part of ASSA ABLOY's business, covering a vast geographical area. It offers a wide range of products, including digital locks that can be opened with keycards or smartphones, as well as traditional mechanical locks and door hardware. The customers here range from homeowners looking for enhanced security to large institutions and businesses needing sophisticated access control systems. This segment contributes a substantial portion to the company's overall revenue, reflecting the diverse needs for security and access in these regions.
North and South America (Americas)
Operating across both North and South America, this segment provides a comprehensive suite of door opening solutions. It includes well-known residential brands that many homeowners recognize, alongside advanced electronic access control systems for commercial and institutional clients. The business here is driven by new construction, renovation projects, and the increasing demand for smart home technology and enhanced building security. This division represents another major revenue stream for ASSA ABLOY, highlighting its strong presence in the Western Hemisphere.
Asia Pacific (Asia Pacific)
This segment focuses on the dynamic and rapidly growing markets across Asia and Oceania. It offers a broad spectrum of products, from basic mechanical locks to cutting-edge digital access solutions tailored to the specific needs of this diverse region. The growth in this area is fueled by increasing urbanization, rising disposable incomes, and a greater emphasis on security in both residential and commercial properties. While perhaps smaller than the EMEIA or Americas segments, the Asia Pacific division is a key growth engine for ASSA ABLOY.
Global Technologies
This division is where ASSA ABLOY develops and markets advanced technology platforms and solutions that often underpin the products in other segments. It includes areas like electronic access control ecosystems and secure credential technologies, which are crucial for high-tech environments. Think of the systems that manage access for thousands of employees in a large corporation or secure sensitive areas in government facilities. This segment is vital for innovation and provides the technological backbone for many of the company's offerings, representing a smaller but strategically important part of the business.
Entrance Systems
The Entrance Systems division specializes in automated doors and related equipment, focusing on areas where smooth and secure passage is critical. This includes products like revolving doors for high-traffic areas, sliding doors for convenience, and high-speed doors for industrial settings, as well as loading dock equipment. These solutions are designed for efficiency and security in environments such as airports, hospitals, and distribution centers. This segment addresses specific needs for managing the flow of people and goods, contributing a distinct revenue stream to the company.
What management is betting on now
ASSA ABLOY's management is focused on expanding its leadership in digital and automated access solutions. They are investing in technologies that make opening doors more convenient and secure, such as smart locks that connect to the internet and sophisticated electronic access control systems. The company is also prioritizing growth in emerging markets where demand for security products is rising rapidly. Furthermore, they continue to pursue strategic acquisitions to broaden their product portfolio and geographic reach, aiming to stay ahead in a competitive global market.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $29.17 vs current price $19.86
Wall Street consensus is the average analyst price target: $21.10 (-27.7% lower than our fair-value estimate).
Our most-likely fair value is $29.17 a share — about 46.9% above today's price of $19.86, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net cash $0 - more cash than debt. Interest coverage 7.1x.
Net debt
$0.00
Interest coverage
7.12x
ASSA ABLOY AB (publ)'s profit covers its interest bill about 7.1 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ASAZY
BASELINE
ASSA ABLOY AB (publ)
Total debt — Interest coverage 7.12x This is the baseline the peer rows are being compared against.
Total debt $2.22B Interest coverage 8.51x +20% vs ASAZY Carries about 1.2x more debt cushion than ASAZY.
Total debt $2.80B Interest coverage 5.39x -24% vs ASAZY Carries about 1.3x less debt cushion than ASAZY.
Total debt $9.28B Interest coverage 12.46x +75% vs ASAZY Carries about 1.8x more debt cushion than ASAZY.
Total debt $3.90B Interest coverage 4.75x -33% vs ASAZY Carries about 1.5x less debt cushion than ASAZY.
What you should know
The case for and against ASAZY
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 15.3% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 974.0% above its 5-year average P/E.
-
Net debt grew 110.9% over 3 years.
-
Operating margin compressed from 15.8% to 0.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.52x
Forward P/E
22.37x
P/B
0.21x
P/S
—
EV/EBITDA
—
PEG ratio
1.70x
Profitability
How much profit each dollar creates
Gross margin
43.3%
Operating margin
0.0%
Net margin
11.0%
ROE
15.3%
ROA
7.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.55x
Current ratio
1.09x
Quick ratio
0.65x
Total debt
—
Total cash
—
Growth
How the business has been compounding
Revenue TTM
$15.53B
Revenue 5Y CAGR
8.1%
EPS TTM
0.81
EPS 5Y CAGR
3.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.18B
Free CF TTM
$1.90B
FCF margin
12.2%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
41.7%
Last ex-div date
2026-11-10