Low risk, low reward
Q4 earnings provided a small positive surprise. Earnings will most likely continue to improve in 2024-25, but the pace of growth is likely to slow after a strong cycle in 2021-23. Organic growth will be weighed down by weak construction at least in H1 2024. The expensive valuation leaves little upside for the stock, even if the ongoing rationalization program brings profitability to targeted levels.
Hexagon
Hexagon is a global provider of technology solutions. The company specializes in the development of information technology that is further used in geospatial and industrial applications. The company's solutions mainly integrate sensors, software, industrial knowledge, and customers' workflows into information ecosystems. Customers are found on a global level in various industries. Hexagon was founded in 1975 and is headquartered in Stockholm, Sweden.
Read more on company pageKey Estimate Figures02/02
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 5,435.2 | 5,714.0 | 6,055.9 |
growth-% | 5.32 % | 5.13 % | 5.98 % |
EBIT (adj.) | 1,596.7 | 1,701.3 | 1,828.2 |
EBIT-% (adj.) | 29.38 % | 29.77 % | 30.19 % |
EPS (adj.) | 0.43 | 0.46 | 0.50 |
Dividend | 0.13 | 0.14 | 0.15 |
Dividend % | 1.19 % | 1.74 % | 1.86 % |
P/E (adj.) | 25.12 | 17.55 | 15.99 |
EV/EBITDA | 18.42 | 11.44 | 10.20 |