Rankings Tech hardware & optics Hexagon

Hexagon

Tech hardware & optics · SwedenRank 404 of 829Prices 3 Nov 2026Model 1.4

A good business with a real question mark: the price, a crack, or both.

Biggest deductions

  • Multiples vs own history−6
  • ROIC−4
  • Quality of growth−3

Strengths

  • Low debt and strong cash flow+2
  • Broad customer base+1

How the score is built

From 100 to 61, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
61Score

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
107.75 SEK
Median analyst target
108.65 SEK
Upside to median
+0.8%
Analysts
16
Target range
83.63 – 132.86 SEK
52-week change
−6%
P/E (trailing)
25.2
Forward P/E
28.4
PEG
5.77

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 4 findings
−13 of −30
  • Quality of growth
    Revenue stood still for three years (EUR 5,435m → 5,401m → 5,425m in 2023–2025, incl. Octave). Q2 2026 with 12% organic growth was the highest in five years, but after years of stagnation and a structural 7% drop from the D&E divestment.
    −3
  • ROIC
    ROIC has been 5.8–9.3% since 2022 (5.8% in 2025) vs a WACC of about 8.6%; a P/TBV of 187 shows that almost all equity is goodwill from decades of acquisitions.
    −4
  • Quality of earnings
    Reported EPS was EUR 0.23 in 2025 vs adjusted EUR 0.41, and reported net income has fallen from EUR 1,023m (2024) to 617m. Hexagon steers by EBITAC, which ignores amortisation of capitalised development costs and acquired intangibles.
    −3
  • Capital allocation (Waygate)
    A cash purchase of Waygate Technologies from Baker Hughes for about USD 1.45bn – about 2.3 times revenue and about 23 times EBIT at an EBIT margin of only 10%, half of Hexagon's own margin. Bigger, but not stronger.
    −3

Price

Today's multiples against the company's own history and its peers. · 2 findings
−9 of −35
  • Multiples vs own history
    Forward P/E 26.7 vs 19.6–24.1 in 2022–2025 – for a smaller, more hardware-heavy company without Octave's software, which previously carried part of the multiple. EV/EBITDA of about 18 is based on TTM figures incl. Octave and therefore understates the price.
    −6
  • FCF yield
    The historical 5.8% FCF yield includes Octave; analysts expect only EUR 717m of FCF for 2026 (vs 1,030m in 2025), about 3% of the SEK 261bn market value.
    −3

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings
−6 of −35
  • End markets
    Management expects continued weakness in the auto industry (especially China), soft agriculture and only gradual improvement in construction, where EMEA is declining. Infrastructure & Geospatial grew only 4% organically in Q2.
    −3
  • Robotics bet
    Robotics development costs (the AEON humanoid) of about EUR 50m in 2026 with a commercial launch set for the end of 2026 – an unproven bet that, together with doubts about the durability of growth, sent the stock sharply lower after Q2.
    −2
  • Currency
    Management says currency effects have normalised, so earlier tailwinds disappear; reporting in EUR and a share price in SEK add extra currency risk for Swedish investors.
    −1

Plus

Only documented strengths. · 2 findings
+3 of +15
  • Low debt and strong cash flow
    Net debt fell to EUR 532m (0.3 times EBITDA) from 1,221m, and cash conversion was 149% in Q2; EBITAC margin 24.3% (+330 bp).
    +2
  • Broad customer base
    Growth is broad: aerospace, defence, electronics and general manufacturing grew in all regions, Autonomous Solutions +20% and China +10% organic.
    +1

Caveats

What the score does not capture, or where the data is weak.
The B share (HEXA.B). Accounts in EUR, price in SEK. Octave (software) was spun off with effect from 22/5/2026 (1 Octave share per 10 Hexagon shares). stockanalysis' TTM figures mix Octave and continuing Hexagon: the trailing P/E of 11.2 and a pre-tax margin of 46% are due to an accounting gain on the spin-off, and the 52-week change (−11%) is not adjusted for the Octave distribution. The score therefore rests on the company's own Q2 figures for continuing operations and forward multiples. Industry 'Tech hardware & optics' (precision measurement, sensors, GNSS/lidar) – the closest match after the software spin-off. The Waygate acquisition (USD 1.45bn) is expected to close in H2 2026.

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