ScoreWhy is Husqvarna AB ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.88
2
Poor long term growth as Operating profit has grown by an annual rate -8.12% of over the last 5 years
3
Positive results in Mar 26
- PRE-TAX PROFIT(Q) At SEK 1,519 MM has Grown at 179.48%
- ROCE(HY) Highest at 7.99%
- NET PROFIT(Q) At SEK 1,180.56 MM has Grown at 164.45%
4
With ROE of 7.59%, it has a very expensive valuation with a 0.91 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 -22.74%, its profits have risen by 0.1% ; the PEG ratio of the company is 11.9
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.74% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Husqvarna AB should be less than 10%
- Overall Portfolio exposure to Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Husqvarna AB for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Husqvarna AB
-22.67%
11.34
34.40%
OMX Stockholm 30
28.68%
1.89
15.95%
Quality
Management Risk
Growth
Capital StructureQuality 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)
1.28
Tax Ratio
28.81%
Dividend Payout Ratio
40.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.20%
ROE (avg)
12.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.91
EV to EBIT
10.66
EV to EBITDA
5.31
EV to Capital Employed
0.93
EV to Sales
0.67
PEG Ratio
11.94
Dividend Yield
2.19%
ROCE (Latest)
8.76%
ROE (Latest)
7.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
PRE-TAX PROFIT(Q)
At SEK 1,519 MM has Grown at 179.48%
ROCE(HY)
Highest at 7.99%
NET PROFIT(Q)
At SEK 1,180.56 MM has Grown at 164.45%
RAW MATERIAL COST(Y)
Fallen by -4.84% (YoY
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 3,160 MM
INTEREST(Q)
At SEK 202 MM has Grown at 20.96%
CASH AND EQV(HY)
Lowest at SEK 3,415 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.03 times
Here's what is working for Husqvarna AB
Pre-Tax Profit
At SEK 1,519 MM has Grown at 179.48%
over average net sales of the previous four periods of SEK 543.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (SEK MM)
Net Profit
At SEK 1,180.56 MM has Grown at 164.45%
over average net sales of the previous four periods of SEK 446.42 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (SEK MM)
Raw Material Cost
Fallen by -4.84% (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
Interest
At SEK 202 MM has Grown at 20.96%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Operating Cash Flow
Lowest at SEK 3,160 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
Cash and Eqv
Lowest at SEK 3,415 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 4.03 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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