Dagens industri recommends a buy for lock manufacturer Assa Abloy in its 'Stock of the Week' column.
Di notes that the industrial giant continues to operate quietly as its share price climbs steadily. The dividend has been raised for 15 consecutive years, earnings are growing, and the competitive moats remain deep.
'Swedish industrial companies such as ABB, Sandvik, Epiroc, and Alfa Laval have all seen significant re-ratings in recent years, often with good reason. Assa Abloy has not experienced this to the same extent. The forward P/E ratio of 21 for next year is roughly the same as it was five years ago. This comes despite favorable trends in digitalization and security, as well as margin potential.'
Assa Abloy AB is the world's leading manufacturer of locking systems. Net sales break down by family of products as follows:
- security doors and systems (45.3%): shielded and automatic doors, magnetic card locking systems (for use by hotels) and security systems for parking meters, slot machines), etc.;
- electronic and electromechanical locking systems (31.2%): access codes, electronic locks, etc.;
- mechanical locking systems (23.5%): locks, padlocks, bolts, etc.
Net sales are distributed geographically as follows: Europe (32.9%), North America (53.2%), Asia (6.2%), Oceania (3.5%), Central and South America (3.1%) and Africa (1.1%).
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Investor
Investor
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Global
Global
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ESG MSCI
ESG MSCI
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