Hexagon divests a small non-core business
Hexagon announced on Tuesday that it has agreed to sell an industrial measurement instrument business to a Chinese company. We expect the impact on the company’s EBIT and cash position to be very small.
Divestment’s impact on earnings is limited
Hexagon has agreed to sell its Tesa Precision Measurement Instruments business to Hangzhou Great Star Industrial Company. The sold business had revenue of 50.9 MEUR in 2022 with below group average profitability. The divestment could have a negative impact of some 0.5% on group adjusted EBIT assuming that the divested business had an adjusted EBIT-margin of 15%. The deal is expected to close in Q1 2024. Further guesstimating that the business was sold at EV/EBIT 15x, the cash inflow from the divestment could be around 100-130 MEUR (some 0.4% of Hexagon’s market cap).
Hexagon focuses on markets with a better growth profile
Hexagon states that the divestment reflects the group’s commitment to focus on core business activities directly accretive to its mid-term growth, margin and cash generation targets. We find Tesa’s underlying industrial metrology market to be in a rather mature phase which does not leave much room for innovative growth. In the past years Hexagon has mainly acquired software businesses. It has at the same time developed its hardware offering organically especially in those segments where it sees the highest potential.
Hexagon
Hexagon är en global leverantör av tekniska lösningar. Idag är bolaget specialiserat inom utveckling av informationsteknologi som vidare används inom geospatiala och industriella applikationer. Bolagets lösningar integrerar huvudsakligen sensorer, mjukvara, industrikunskap och kunders arbetsflöden till informationsekosystem. Kunderna återfinns på global nivå inom varierande branscher. Hexagon grundades under 1975 och har sitt huvudkontor i Stockholm.
Read more on company pageKey Estimate Figures2023-11-25
2022 | 23e | 24e | |
---|---|---|---|
Omsättning | 5 160,5 | 5 450,6 | 5 721,7 |
tillväxt-% | 18,88 % | 5,62 % | 4,97 % |
EBIT (adj.) | 1 517,8 | 1 590,5 | 1 685,3 |
EBIT-% | 29,41 % | 29,18 % | 29,45 % |
EPS (adj.) | 0,44 | 0,43 | 0,46 |
Utdelning | 0,12 | 0,12 | 0,13 |
Direktavkastning | 1,22 % | 1,33 % | 1,44 % |
P/E (just.) | 22,13 | 21,09 | 19,63 |
EV/EBITDA | 16,98 | 15,88 | 13,22 |