Husqvarna AB (publ) logo

Husqvarna AB (publ)

HUSQ-B.ST
51
Manufacturing - Tools & Accessories · Industrials
Price
kr 41.31
+1.03 (+2.56%)
Market Cap
kr 23.62B
Exchange
Stockholm Stock Exchange
Winston Score
51
Winston looking curious
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Husqvarna is a Swedish company that makes outdoor power tools and equipment. Its main products include robotic lawn mowers, chainsaws, riding mowers, and handheld garden tools sold under the Husqvarna and Gardena brand names. It sells to homeowners, professional landscapers, and forestry workers, and is one of the largest outdoor power equipment makers in the world.

The company earns money by selling hardware through retailers, dealers, and its own channels across Europe, North America, and the rest of the world. Its competitive position comes from strong brand recognition, a wide dealer network, and its early lead in robotic mowing technology. The shift toward battery-powered equipment is both a key growth opportunity and a risk, since it requires heavy investment in new products while competitors like Deere and Techtronic Industries are pushing hard into the same space.

Winston Score History

Score breakdown

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Quality

Gross Margin
32.6%
Modest — 32.6% gross margin
Operating Margin
12.2%
Healthy — 12.2% operating margin
ROCE
4.6%
Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-5.1%
Shrinking sales (-5.1% YoY)
EPS YoY
+101.9%
Earnings growing fast (101.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
160%
Turns 160% of profit into real cash
FCF Margin
2.3%
Thin free cash flow (2.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.48
Conservative — low debt load (0.48)
Interest Cover
5.59x
Adequate interest coverage (5.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio
12.0x
Attractive valuation — P/E 12.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+0.4
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
2.41%
Moderate income — 2.41% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
-96.1%
Dividend cut (-96.1% YoY) — warning sign

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