One-glance verdict
Undervalued
$27.88 our estimate vs market $7.15
74% below our estimate, below the bear case
Fundamentals snapshot
Husqvarna AB (publ)
HSQVY · PNK · Industrials · Tools & Accessories
Current price
$7.15
52-week range
$6.72 - $10.54
Market cap
$2.04B
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 566.4% 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 is a Swedish company that makes outdoor power equipment like chainsaws, robotic lawnmowers, and garden watering systems for both professional landscapers and regular homeowners. The company earns most of its money from its Forest & Garden division, meaning its business can be influenced by seasonal weather and consumer spending on home and garden care. By selling a wide range of products to different types of customers around the world, Husqvarna serves a very broad market.
How the company got here
Founded as a royal rifle factory in Sweden in 1689, Husqvarna has a long history of reinvention. After its contract with the Swedish crown ended in the late 1800s, the company branched out into a wide array of products, including sewing machines, bicycles, and motorcycles. In 1919, it produced its first lawnmower, marking a pivotal shift toward outdoor power products. Over the following decades, Husqvarna focused its business, selling off divisions like motorcycles and sewing machines to specialize in outdoor and construction equipment.
What it actually does
Husqvarna is a leading global producer of outdoor power products for both professionals and homeowners. You might recognize their chainsaws, robotic lawn mowers, and garden tractors. The company also makes watering products for gardens and powerful cutting and drilling tools for the construction and stone industries. They sell these items under several brand names, including Husqvarna, Gardena, and McCulloch, through a 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 a wide range of products for maintaining green spaces like forests, parks, and gardens. This includes everything from handheld tools like chainsaws and leaf blowers to wheeled equipment like lawn mowers and tractors for both professional landscapers and everyday homeowners. This division is a major focus for the company's innovation in battery-powered and robotic solutions.
Gardena
Making up roughly a quarter of the company's business, the Gardena division focuses on the home gardener. This segment is a European leader in garden irrigation (watering systems for your lawn and plants). It also offers a variety of other gardening tools, including smart systems that can automate watering and garden care. This part of the business primarily serves consumers who are passionate about their gardens.
Husqvarna Construction
This segment, representing about 15% of the company, serves the construction industry with heavy-duty tools and equipment. Instead of lawnmowers, this division makes things like power cutters for concrete, floor saws, and diamond tools for cutting and polishing hard materials. Their customers are professionals in the construction and stone industries who need powerful and reliable equipment for demanding jobs.
What management is betting on now
The company's current strategy is focused on achieving profitable growth by improving efficiency and reducing costs. A key part of this is investing in innovation, especially in areas like battery-powered products, robotics (like their robotic lawnmowers), and smart, connected devices. Management is also emphasizing sustainability, with goals to significantly reduce CO2 emissions and increase the use of circular (recycled or reusable) materials in their products. They are also working to streamline their product offerings to focus on the most profitable and high-growth areas.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $27.88 vs current price $7.15
Our most-likely fair value is $27.88 a share — about 289.9% above today's price of $7.15, 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 16.86x +335% vs HSQVY Carries about 4.3x 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 13.5x P/E vs peer median 19.9x (32.2% cheaper).
Risks
-
Stock trades 566.4% 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)
13.49x
Forward P/E
—
P/B
0.17x
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
$4.71B
Revenue 5Y CAGR
-4.8%
EPS TTM
0.53
EPS 5Y CAGR
-2.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$424.67M
Free CF TTM
$196.47M
FCF margin
4.2%
Dividend
Shareholder payout
Yield
4.6%
Payout ratio
41.4%
Last ex-div date
2026-10-20