HEXPOL AB (HPOL 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

Assa Abloy AB

Lifco AB

HEXPOL AB

Systemair AB

Lindab International AB

Nederman Holding AB

Mycronic AB

Alfa Laval AB

Indutrade AB

Atlas Copco AB

Munters Group AB

Why is HEXPOL AB ?

High Management Efficiency with a high ROCE of 19.96%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 31.91

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SEK 2,318 MM
ROCE(HY) Lowest at 12.97%
NET SALES(Q) Lowest at SEK 4,254 MM

With ROE of 14.86%, it has a fair valuation with a 2.03 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 -18.65%, its profits have fallen by -17.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.65% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HEXPOL 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 HEXPOL AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

HEXPOL AB

-100.0%

28.96

27.15%

OMX Stockholm 30

19.79%

1.06

18.66%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.56%

EBIT Growth (5y)

6.77%

EBIT to Interest (avg)

31.91

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.14

Tax Ratio

26.18%

Dividend Payout Ratio

74.45%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

19.96%

ROE (avg)

16.07%

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

2.03

EV to EBIT

10.89

EV to EBITDA

9.10

EV to Capital Employed

1.79

EV to Sales

1.60

PEG Ratio

Dividend Yield

4.94%

ROCE (Latest)

16.46%

ROE (Latest)

14.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 3,114.29

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 2,318 MM

ROCE(HY)

Lowest at 12.97%

NET SALES(Q)

Lowest at SEK 4,254 MM

OPERATING PROFIT(Q)

Lowest at SEK 654 MM

PRE-TAX PROFIT(Q)

Lowest at SEK 487 MM

NET PROFIT(Q)

Lowest at SEK 339 MM

EPS(Q)

Lowest at SEK 0

Here's what is working for HEXPOL AB

Interest Coverage Ratio

Highest at 3,114.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -2.26% (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 HEXPOL AB

Operating Cash Flow

Lowest at SEK 2,318 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Net Sales

Lowest at SEK 4,254 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Net Sales

At SEK 4,254 MM has Fallen at -13.9%

over average net sales of the previous four periods of SEK 4,941 MM

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 654 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Pre-Tax Profit

Lowest at SEK 487 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Pre-Tax Profit

At SEK 487 MM has Fallen at -27.31%

over average net sales of the previous four periods of SEK 670 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 339 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Net Profit

At SEK 339 MM has Fallen at -30.71%

over average net sales of the previous four periods of SEK 489.25 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)