One-glance verdict
Within fair range
$8.66 our estimate vs market $9.95
Wall Street consensus: $11.88 (37.1% higher than our fair-value estimate)
15% above our estimate
Fundamentals snapshot
Hexagon AB (publ)
HXGBY · PNK · Technology · Scientific & Technical Instruments
Current price
$9.95
52-week range
$9.19 - $12.85
Market cap
$26.71B
Balance sheet
Watch
7.42x Adequate
Net debt $1.48B. 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 0.4% last year.
- Reward Returns 17.9% on equity, ahead of 40% of its peers.
- Risk Forward P/E (17.2x) is higher than trailing (11.4x) - earnings are expected to drop.
- Risk Operating margin compressed from 25.4% to 24.1% over 3 years.
What this company does
Hexagon AB (publ)
Hexagon provides the digital eyes and brains for heavy industries like manufacturing and mining by selling high-tech hardware, like laser scanners, and the smart software needed to run them. This is important because their technology allows companies to create extremely accurate digital models of the real world, helping to automate factories and make industrial operations safer and more efficient.
How the company got here
Founded in Sweden in 1975, Hexagon started as a conglomerate, a type of company that owns a mix of unrelated businesses, including things like seafood importing. A major shift happened in the late 1990s when new leadership decided to focus the company on a specific area: measurement technology. Through many acquisitions (buying other companies), Hexagon transformed into a global technology leader specializing in sensors, software, and autonomous solutions. This strategy of buying and integrating technology companies, like the major purchases of Brown & Sharpe, Leica Geosystems, and Intergraph, has been central to its growth.
What it actually does
Hexagon creates technology that captures and makes sense of physical reality, often creating a "digital twin" (a virtual model of a real-world object or system). Think of it as a bridge between the physical and digital worlds. Their products include high-precision sensors, lasers, and cameras that measure things with extreme accuracy, and the software to turn that data into useful information for businesses. These tools are used in a huge range of industries, from manufacturing and construction to agriculture and public safety, to improve efficiency and quality.
Manufacturing Intelligence
This is Hexagon's largest business segment. It provides solutions for factories to make things better and smarter, from the initial design to the final inspection. Customers in industries like automotive and aerospace use Hexagon's tools to digitally simulate production, automate quality control with high-tech measuring machines, and analyze data to make their manufacturing processes more efficient. This segment helps ensure that everything from a car part to a smartphone component is made exactly to specification.
Geosystems
This segment focuses on capturing, measuring, and visualizing the world around us, a field known as geospatial technology. It provides tools like laser scanners and satellite positioning systems (like GPS, but much more accurate) used by surveyors, construction companies, and city planners. For example, a construction company might use this technology to precisely map a building site, or a city might use it to create a detailed 3D model for urban planning. This division is a major part of the company's business.
Autonomous Solutions
This is a fast-growing part of Hexagon that helps various industries automate their operations. They provide the sensors and software that allow vehicles and equipment to operate on their own, particularly in agriculture, mining, and defense. For instance, their technology can guide a tractor in a field with centimeter-level accuracy or help a fleet of mining trucks operate safely without drivers. This segment is about making industries safer and more productive through automation.
What management is betting on now
Hexagon's main focus is on enabling "industrial autonomy," which means helping its customers automate their operations to the fullest extent possible. They are heavily investing in software, artificial intelligence (AI), and creating "digital twins" to help businesses monitor and optimize their physical assets in real-time. The company is also undergoing a significant change by spinning off a portion of its software business into a separate company called Octave, to allow both new companies to have a clearer strategic focus. This move is intended to help the core Hexagon business concentrate on its leadership in precision measurement and autonomous technologies.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $8.66 vs current price $9.95
Wall Street consensus is the average analyst price target: $11.88 (37.1% higher than our fair-value estimate).
Our most-likely fair value is $8.66 a share — about 13.0% away from today's price of $9.95, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.5B. Interest coverage 7.4x.
Net debt
$1.48B
Interest coverage
7.42x
Hexagon AB (publ)'s profit covers its interest bill about 7.4 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HXGBY
BASELINE
Hexagon AB (publ)
Total debt $3.77B Interest coverage 7.42x This is the baseline the peer rows are being compared against.
Total debt $1.41B Interest coverage 8.22x +11% vs HXGBY Has roughly the same debt cushion as HXGBY.
Total debt $2.72B Interest coverage 25.27x +241% vs HXGBY Carries about 3.4x more debt cushion than HXGBY.
Total debt $1.38B Interest coverage 12.96x +75% vs HXGBY Carries about 1.7x more debt cushion than HXGBY.
Total debt $2.87B Interest coverage 33.13x +347% vs HXGBY Carries about 4.5x more debt cushion than HXGBY.
What you should know
The case for and against HXGBY
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.4% last year.
-
Returns 17.9% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (17.2x) is higher than trailing (11.4x) - earnings are expected to drop.
-
Operating margin compressed from 25.4% to 24.1% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.3%).
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)
11.44x
Forward P/E
17.24x
P/B
1.93x
P/S
4.92x
EV/EBITDA
22.11x
PEG ratio
0.81x
Profitability
How much profit each dollar creates
Gross margin
66.0%
Operating margin
24.1%
Net margin
37.5%
ROE
17.9%
ROA
3.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
3.44x
Quick ratio
0.90x
Total debt
$3.77B
Total cash
$2.29B
Growth
How the business has been compounding
Revenue TTM
$6.28B
Revenue 5Y CAGR
1.7%
EPS TTM
0.87
EPS 5Y CAGR
-15.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.70B
Free CF TTM
$986.11M
FCF margin
15.7%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
17.9%
Last ex-div date
2026-06-15