The average target price of HEXI.ST is 0.20 and suggests 25% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrease one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 0.2. This is lower than the current market price, meaning that even the most optimistic analyst does not see upside potential. On the other hand, the most pessimistic analyst has a target price of 0.2. This is equivalent to 25% downside potential in the worst case. 

Hexicon AB (publ) designs, manufactures, sells, and operates offshore wave and wind turbines. The company develops, constructs, and operates floating offshore wind farms; and designs dual turbine floating wind power platforms that hosts two wind turbines and weathervanes around a single mooring point. It operates primarily in South Korea, Scotland, Spain, Sweden, South Africa, and Ireland. The company was founded in 2009 and is headquartered in Stockholm, Sweden.

Sweden

Hexicon AB (publ)

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

HEXI.ST reported revenue of SEK 10mn in the last 12 months, up 74% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 31% from FY23 to SEK -0.71. Market expects EPS to reach SEK -0.53 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 30ppts over past six months and grown 4ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -592.9% in the last 12 months, up from -1357.9% in FY23. 

Historically, HEXI.ST has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -2609.1%, a growth from -3475.4% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -46.9% in the last 12 months, a decrease from -41.6% in FY23. The market analysts predict that RoA will be -49.6% in FY24, again weaker than its peers. 

Hexicon AB (publ) reported a return on equity (RoE) of 183.0% in the last 12 months, up from -193.5% in FY23. The market consensus projects an RoE of -13267.8% in FY24, however, this time below its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -110.3%, below the peers. The consensus estimate for FY24 for RoCE is -96.6%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -12.3 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

HEXI.ST has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity may be unstable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure.

In highly turbulent market conditions, HEXI.ST is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, HEXI.ST is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is moderately underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E. 

Hexicon AB (publ)

SEK 0.23

3

Hexicon AB (publ)

SEK 0.23

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 0.23

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