Husqvarna AB (HUSQ 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

Zinzino AB

Electrolux Professional AB

Bergman & Beving AB

Husqvarna AB

Why is Husqvarna AB ?

Poor long term growth as Operating profit has grown by an annual rate -8.12% of over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SEK 4,202 MM
NET SALES(Q) Lowest at SEK 7,429 MM
OPERATING PROFIT(Q) Lowest at SEK -100 MM

With ROE of 7.08%, it has a very expensive valuation with a 1.18 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 -25.77%, its profits have risen by 0.9% ; the PEG ratio of the company is 16.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.77% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Husqvarna AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Husqvarna AB

-25.77%

12.13

31.49%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.13%

EBIT Growth (5y)

-8.12%

EBIT to Interest (avg)

10.88

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.30

Tax Ratio

28.81%

Dividend Payout Ratio

40.42%

Pledged Shares

Institutional Holding

ROCE (avg)

13.20%

ROE (avg)

12.08%

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

1.18

EV to EBIT

13.63

EV to EBITDA

6.59

EV to Capital Employed

1.13

EV to Sales

0.80

PEG Ratio

16.61

Dividend Yield

4.02%

ROCE (Latest)

8.27%

ROE (Latest)

7.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

NET PROFIT(9M)

At SEK 792.36 MM has Grown at 71.97%

RAW MATERIAL COST(Y)

Fallen by -8.12% (YoY

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 4,202 MM

NET SALES(Q)

Lowest at SEK 7,429 MM

OPERATING PROFIT(Q)

Lowest at SEK -100 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.35 %

PRE-TAX PROFIT(Q)

Lowest at SEK -1,015 MM

NET PROFIT(Q)

Lowest at SEK -781 MM

Here's what is working for Husqvarna AB

Raw Material Cost

Fallen by -8.12% (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 Husqvarna AB

Net Sales

At SEK 7,429 MM has Fallen at -37.64%

over average net sales of the previous four periods of SEK 11,912.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (SEK MM)

Pre-Tax Profit

At SEK -1,015 MM has Fallen at -286.07%

over average net sales of the previous four periods of SEK 545.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -781 MM has Fallen at -264.45%

over average net sales of the previous four periods of SEK 474.92 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 4,202 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 7,429 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK -100 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at -1.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK -1,015 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK -781 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)