One-glance verdict
Within fair range
$11.24 our estimate vs market $10.92
Wall Street consensus: $11.88 (5.6% higher than our fair-value estimate)
3% below our estimate
Fundamentals snapshot
Hexagon AB (publ)
HXGBY · PNK · Technology · Scientific & Technical Instruments
Current price
$10.92
52-week range
$8.00 - $12.85
Market cap
$29.31B
Balance sheet
Watch
7.42x Adequate
Net debt $493.01M. 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 32.8% on equity, ahead of 60% of its peers.
- Risk Forward P/E (27.1x) is higher than trailing (10.2x) - earnings are expected to drop.
- Risk Operating margin compressed from 25.4% to 24.9% over 3 years.
What this company does
Hexagon AB (publ)
Hexagon AB sells technology that helps businesses map and manage physical assets, like factories and mines, using software and sensors. Their money primarily comes from selling these sophisticated tools and ongoing services. This is important because it helps industries become more efficient and make smarter decisions with their data.
How the company got here
Hexagon AB was founded in 1975 and has grown into a global leader by focusing on technology that helps industries measure, analyze, and manage their operations. The company's journey has been marked by strategic acquisitions and a consistent push into digital solutions that improve efficiency and accuracy. This evolution has positioned Hexagon at the forefront of industries seeking to leverage data for better decision-making.
What it actually does
Hexagon provides advanced digital solutions that help businesses in various sectors measure, map, and manage their physical assets and operations. Think of it like giving companies super-powered tools to understand exactly what's happening in their factories, on their construction sites, or even in vast mining operations. These tools often involve sophisticated software and hardware that collect and analyze data, leading to more precise and efficient work.
Manufacturing Intelligence
This segment focuses on providing solutions for the manufacturing industry, helping companies improve their production processes. It includes software for design, simulation, and quality control, as well as advanced measurement systems like coordinate measuring machines (CMMs) that ensure parts are made to exact specifications. Essentially, it's about making factories smarter and more efficient, from the initial design to the final product inspection. This is a significant part of Hexagon's business, contributing a substantial portion of its overall revenue.
Geosystems
Geosystems is all about capturing and analyzing data from the physical world, particularly for mapping and surveying. This includes technologies like airborne and mobile laser scanning, which create detailed 3D models of landscapes and infrastructure, and GNSS (Global Navigation Satellite System) positioning, which provides highly accurate location data. Industries like construction, mining, and public safety rely on these tools to plan projects, monitor progress, and ensure safety. This segment represents another core area of Hexagon's operations.
Autonomous Solutions
This segment is focused on developing technologies that enable autonomous operations, particularly in industries like agriculture and mining. It includes systems for machine control, precision farming, and the perception technology needed for self-driving vehicles and equipment. The goal is to increase efficiency and safety by automating complex tasks. While perhaps a smaller slice of the revenue pie compared to the other segments, it's a key area for future growth.
Octave
The Octave segment provides enterprise software solutions designed to manage the entire lifecycle of industrial assets. This includes tools for planning, engineering, procurement, construction, and maintenance of large-scale projects and facilities. It helps companies integrate and manage data across different stages of a project, improving collaboration and operational performance. This segment plays a crucial role in supporting the complex needs of industrial clients.
What management is betting on now
Hexagon's management is heavily focused on expanding its digital solutions and strengthening its position in areas like autonomous operations and smart infrastructure. They are investing in technologies that leverage data to create more intelligent and connected environments, aiming to drive efficiency and sustainability for their customers. This strategy involves both developing new innovations and acquiring companies that complement their existing offerings, positioning Hexagon for continued growth in the evolving technology landscape.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $11.24 vs current price $10.92
Wall Street consensus is the average analyst price target: $11.88 (5.6% higher than our fair-value estimate).
Our most-likely fair value is $11.24 a share — about 3.0% away from today's price of $10.92, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $493.0M. Interest coverage 7.4x.
Net debt
$493.01M
Interest coverage
7.42x
Hexagon AB (publ)'s profit covers its interest bill about 7.4 times over.
Watch
Worse cushion
Baseline
Better cushion
HXGBY
BASELINE
Hexagon AB (publ)
Total debt $2.67B Interest coverage 7.42x This is the baseline the peer rows are being compared against.
Total debt $1.46B Interest coverage 8.22x +11% vs HXGBY Has roughly the same debt cushion as HXGBY.
Total debt $9.72B Interest coverage 6.88x -7% vs HXGBY Has roughly the same debt cushion as HXGBY.
Total debt $3.70B Interest coverage 25.27x +241% vs HXGBY Carries about 3.4x more debt cushion than HXGBY.
Total debt $2.77B Interest coverage 9.12x +23% vs HXGBY Carries about 1.2x 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 32.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (27.1x) is higher than trailing (10.2x) - earnings are expected to drop.
-
Operating margin compressed from 25.4% to 24.9% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.4%).
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)
10.21x
Forward P/E
27.10x
P/B
4.33x
P/S
5.29x
EV/EBITDA
18.81x
PEG ratio
0.77x
Profitability
How much profit each dollar creates
Gross margin
65.8%
Operating margin
24.9%
Net margin
18.5%
ROE
32.8%
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.40x
Current ratio
1.40x
Quick ratio
1.11x
Total debt
$2.67B
Total cash
$2.18B
Growth
How the business has been compounding
Revenue TTM
$6.20B
Revenue 5Y CAGR
1.7%
EPS TTM
1.07
EPS 5Y CAGR
-15.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.64B
Free CF TTM
$952.58M
FCF margin
15.4%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
14.4%
Last ex-div date
2026-06-15