Skip to Content

Assa Abloy AB B ASSA B

Rating as of

Morningstar’s Analysis

Currency in SEK
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Increasing Our Assa Abloy FVE to SEK 270 on Higher Digital and Smart Lock Growth Expectations

Analyst Note

| Denise Molina, CFA |

Facing an easy comparison on revenue but raw material headwinds, wide-moat Assa Abloy posted a solid second quarter with 23% organic revenue growth and a 15.2% EBIT margin, in line with the 15.9% margin reported in the second quarter of 2019 after normalizing for currency and acquisitions. A positive revenue mix effect of 40 basis points more than offset a 20-basis-point negative impact from raw material prices, but more pressure is likely in the second half. Below-normal levels of travel affected demand in the global tech and APAC divisions, and we expect both divisions to see above-normal recovery growth levels stretched in 2022 as a result. Based more on long-term factors, we are increasing our fair value estimate to SEK 270 per share from SEK 215, with a higher revenue growth outlook driven by digital solutions being the key driver for the upgrade, affecting both growth and return on invested capital assumptions. The shares offer modest upside.

Read Full Analysis

Company Profile

Business Description

Assa Abloy has the world’s largest installed base of locks, protecting some of the most security-sensitive buildings, including the European Parliament in Brussels. Three fourths of its revenue comes from government and commercial customers. The company's product base is centred on electromechanical locks, which require identification to unlock with a keycard, biometric scan, or PIN. The company's products are sold directly to security systems integrators, locksmiths, hardware stores, and original equipment manufacturers.

Klarabergsviadukten 90, P.O.Box 70340
Stockholm, SE-107 23, Sweden
T +46 850648500
Sector Industrials
Industry Security & Protection Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 50,727

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.