Rankings Construction & materials Assa Abloy
Assa Abloy
73
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- ROIC−4
- Quality of growth−3
- US housebuilding−3
Strengths
- Cash conversion+2
- Pricing power+1
- Dividend history+1
How the score is built
From 100 to 73, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 391.20 SEK
- Median analyst target
- 420.00 SEK
- Upside to median
- +7.4%
- Analysts
- 22
- Target range
- 345.00 – 500.00 SEK
- 52-week change
- +9%
- P/E (trailing)
- 25.6
- Forward P/E
- 21.8
- PEG
- 2.08
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−7 of −30
- −4ROICROIC 10.7% TTM vs 13.7% (2022) and 13.0% (2021); only slightly above a WACC of 8.0%. The acquisitions – including HHI for SEK 37bn – have built up goodwill faster than returns.
- −3Quality of growthOnly 4% organic growth in Q2 (2% price, 2% volume); the rest comes from acquisitions (eight in 2026, about SEK 2.5bn of annual revenue). Revenue has been broadly flat since 2024 (150.2bn → 151.5bn TTM), and analysts expect only 3.8% growth in 2026.
Price
Today's multiples against the company's own history and its peers. · 1 finding−2 of −35
- −2Multiples vs own historyForward P/E 20.3 vs 17.4–26.4 in 2021–2025 (average about 21.7); EV/EBITDA 15.0 vs 12.7–19.4; P/FCF 18.4 vs 17.0–27.8. Below the average, but a trailing P/E of 24.2 is not cheap for 4% organic growth.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−9 of −35
- −3US housebuildingUS new construction continues its negative trend, and management expects no improvement this year with rates around 6.5%; that hits the HHI business (residential door hardware) directly.
- −2ChinaGreater China fell at a 'strong double-digit' rate in Q2, Asia Pacific overall −4% organic, and acquisitions in China are paused until the market stabilises.
- −2DebtNet debt SEK 67.5bn, debt/EBITDA 2.3x vs 1.5–1.6x in 2021–2022 (management: net debt/EBITDA 2.2x, up from 2.1x in Q1); interest cover 8.2x vs 41x at Atlas Copco. The acquisition model requires continued debt funding.
- −2Weak Q3 outlookManagement expects flat sales growth in Q3 and a slightly dilutive effect on the margin from acquisitions.
Plus
Only documented strengths. · 3 findings+4 of +15
- +2Cash conversionOperating cash flow SEK 6.3bn in Q2 (+6%) and 106% cash conversion; FCF 21.6bn TTM (FCF yield 5.4%), and the dividend is only 33% of FCF.
- +1Pricing powerThe 2026 price outlook raised to 'slightly above 2%' from 1.5%, and the EBIT margin reached a record 17.0% in Q2.
- +1Dividend history15 years of uninterrupted dividend growth; the dividend rose 8.5% to SEK 6.40 with a payout ratio of 42%.
Caveats
What the score does not capture, or where the data is weak.
Industry set to 'Construction & materials' rather than 'Machinery & automation': locks, doors, hardware and access control are building products (GICS 'Building Products'), and demand follows new construction and renovation (including HHI in US housebuilding) – not the industrial investment cycle. Scored on the B share (ASSA.B). stockanalysis shows no change in share count; P/TBV is n/a due to large goodwill from about 400 acquisitions. Q2 had one-offs of about SEK 220m (earn-out reversals and a divestment gain). Insider trades and litigation have not been examined in depth.
Also in Construction & materials
The highest scores in the same industry.
