Assa Abloy AB (ASSA B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Assa Abloy AB

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Atlas Copco AB

Munters Group AB

Why is Assa Abloy AB ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.61

Poor long term growth as Operating profit has grown by an annual rate 19.54% of over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at SEK 3,917 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 4.1 times
NET SALES(Q) Lowest at SEK 35,751 MM

With ROE of 15.73%, it has a expensive valuation with a 3.77 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 13.07%, its profits have risen by 2.1% ; the PEG ratio of the company is 11.6

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 13.07% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 29.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Assa Abloy AB should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Assa Abloy AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Assa Abloy AB

13.07%

57.19

21.97%

OMX Stockholm 30

29.77%

1.85

16.13%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.70%

EBIT Growth (5y)

19.54%

EBIT to Interest (avg)

13.61

Debt to EBITDA (avg)

1.69

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.90

Tax Ratio

25.94%

Dividend Payout Ratio

48.36%

Pledged Shares

Institutional Holding

0.26%

ROCE (avg)

14.51%

ROE (avg)

14.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.77

EV to EBIT

17.60

EV to EBITDA

14.17

EV to Capital Employed

2.75

EV to Sales

2.90

PEG Ratio

11.56

Dividend Yield

1.62%

ROCE (Latest)

15.64%

ROE (Latest)

15.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 22,093 MM

RAW MATERIAL COST(Y)

Fallen by -4.92% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 58.96 %

-6What is not working for the Company

CASH AND EQV(HY)

Lowest at SEK 3,917 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.1 times

NET SALES(Q)

Lowest at SEK 35,751 MM

OPERATING PROFIT(Q)

Lowest at SEK 6,888 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.27 %

PRE-TAX PROFIT(Q)

Lowest at SEK 4,747 MM

Here's what is working for Assa Abloy AB

Operating Cash Flow

Highest at SEK 22,093 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Debt-Equity Ratio

Lowest at 58.96 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -4.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Assa Abloy AB

Net Sales

Lowest at SEK 35,751 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 6,888 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 19.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 4,747 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Cash and Eqv

Lowest at SEK 3,917 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio