One-glance verdict
Undervalued
$27.23 our estimate vs market $8.20
70% below our estimate, below the bear case
Fundamentals snapshot
Husqvarna AB (publ)
HSQVY · PNK · Industrials · Tools & Accessories
Current price
$8.20
52-week range
$7.28 - $11.25
Market cap
$2.34B
Balance sheet
Stretched
3.88x Stretched
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 Returns 5.6% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 694.2% above its 5-year average P/E.
- Risk Operating margin compressed from 5.3% to 0.0% over 3 years.
What this company does
Husqvarna AB (publ)
Husqvarna sells outdoor power equipment, including chainsaws, trimmers, and robotic lawnmowers, to both professional landscapers and everyday homeowners. The company's revenue (the total money brought in from sales) primarily comes from its well-known Husqvarna and Gardena brands. This matters because its success is often tied to predictable factors like seasonal weather and consumer spending on home and garden upkeep.
How the company got here
Founded in 1689 as a royal weapons factory in Sweden, Husqvarna is one of the world's oldest continuously running companies. When demand for rifles declined in the late 1800s, the company cleverly repurposed its machinery to make sewing machines, kitchen equipment, and eventually bicycles and motorcycles. A major turning point was in 1959 when it produced its first chainsaw, marking a decisive shift into the outdoor power products that define it today. After being owned by Electrolux for a period, Husqvarna became an independent company again in 2006 and has since focused on growing its reputation for high-quality outdoor and construction equipment.
What it actually does
Husqvarna makes a wide range of power tools and equipment for managing outdoor spaces like forests, parks, and gardens, as well as for the construction industry. You might recognize their products as chainsaws, lawnmowers (including robotic ones), and garden tractors sold to both homeowners and professionals like landscapers. The company also produces watering systems for gardens and powerful cutting and drilling tools for construction and stone work. They sell these items under several brand names, including Husqvarna, Gardena, and McCulloch, through a global network of dealers and retail stores.
Husqvarna Forest & Garden
This is the company's largest business segment, making up about 60% of its sales. It creates the products most people associate with the Husqvarna name, such as chainsaws, trimmers, and lawnmowers, including their well-known robotic mowers. Both professional foresters and landscapers, as well as everyday homeowners, buy these products to maintain lawns, gardens, and forests. This division is a major focus for the company's innovation, especially in battery-powered and robotic solutions.
Gardena
Making up roughly a quarter of the company's business, the Gardena division focuses on gardening products for homeowners. This segment is a European leader in garden irrigation (the systems and tools used to water plants), offering everything from simple hand tools to smart watering systems you can control from your phone. While it also sells some battery-powered gardening tools, its main customers are consumers looking to care for their personal gardens. The acquisition of Gardena in 2007 significantly expanded Husqvarna's reach into the consumer watering market.
Husqvarna Construction
This is a smaller but important part of the company, representing about 15% of its revenue. This division makes heavy-duty power tools for professional builders and the stone industry. Their products include power cutters for concrete and metal, floor saws, and even remote-controlled demolition robots. Instead of homeowners, the customers here are construction companies and contractors who need powerful and durable equipment for cutting, drilling, and demolishing hard materials on job sites.
What management is betting on now
The company's leadership is focused on a strategy for profitable growth through 2030. A key part of this plan is operational excellence (making the business more efficient and reducing costs), with a goal of saving SEK 4 billion by 2030. They are also heavily investing in innovation, particularly in battery-powered products, robotics, and connected 'smart' devices. Management is also aiming to grow its aftermarket (sales of spare parts, accessories, and services after the initial product is sold), seeing it as a reliable and profitable source of revenue.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $27.23 vs current price $8.20
Our most-likely fair value is $27.23 a share — about 232.1% above today's price of $8.20, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net cash $0 - more cash than debt. Interest coverage 3.9x.
Net debt
$0.00
Interest coverage
3.88x
Husqvarna AB (publ)'s profit covers its interest bill about 3.9 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
HSQVY
BASELINE
Husqvarna AB (publ)
Total debt — Interest coverage 3.88x This is the baseline the peer rows are being compared against.
Total debt $278.86M Interest coverage 10.19x +163% vs HSQVY Carries about 2.6x more debt cushion than HSQVY.
Total debt $763.71M Interest coverage 6.28x +62% vs HSQVY Carries about 1.6x more debt cushion than HSQVY.
Total debt $184.79M Interest coverage 14.06x +263% vs HSQVY Carries about 3.6x more debt cushion than HSQVY.
Total debt $393.40M Interest coverage 3.54x -9% vs HSQVY Has roughly the same debt cushion as HSQVY.
Total debt $2.49B Interest coverage 3.28x -15% vs HSQVY Carries about 1.2x less debt cushion than HSQVY.
What you should know
The case for and against HSQVY
3 Rewards
3 Risks
Rewards
-
Returns 5.6% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 16.1x P/E vs peer median 21.2x (24.2% cheaper).
Risks
-
Stock trades 694.2% above its 5-year average P/E.
-
Operating margin compressed from 5.3% to 0.0% over 3 years.
-
Insider ownership is only 0.0% (peer median: 1.2%).
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)
16.08x
Forward P/E
—
P/B
0.19x
P/S
—
EV/EBITDA
—
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
31.2%
Operating margin
0.0%
Net margin
3.2%
ROE
5.6%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.54x
Current ratio
1.60x
Quick ratio
0.78x
Total debt
—
Total cash
—
Growth
How the business has been compounding
Revenue TTM
$4.87B
Revenue 5Y CAGR
-4.8%
EPS TTM
0.51
EPS 5Y CAGR
-2.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$439.29M
Free CF TTM
$203.23M
FCF margin
4.2%
Dividend
Shareholder payout
Yield
4.2%
Payout ratio
40.2%
Last ex-div date
2026-10-20