Why Hexatronic Group could be your best bet
Buy signal | Free publication | 28 Jul 2025
Hexatronic Group AB: The Fiber Optic Share That Connects the Future
Who is Hexatronic? The King of Fibre Optics
Hello investors! Today we're going to take a look at Hexatronic Group AB, the SEK 21-listed Swedish nugget that's making waves in the world of fibre optics. Specialising in fibre optic products and wireless systems, Hexatronic manufactures cables and ducts in Sweden and is a leader in submarine cable technology. The company is like the Netflix of network infrastructure - it connects the world! Hexatronic works with customers on four continents, from telecoms operators to network owners, offering cutting-edge fibre technology for all applications.
Financial analysis: Verdict out of 5
1. Sales : 4/5
Sales of MSEK 7.581 in 2024 show a good recovery from the fall in 2023 (MSEK 8.150). Although we have not yet returned to the 2023 level, the trend is positive, with solid growth compared with 2022. Forecasts for 2025 point to a turnover of 7.972 MSEK - not bad at all!
2. Net profit: 3/5
Now that's a big difference! The net profit of MSEK 345 in 2024 is down sharply on the MSEK 848 in 2023. Fortunately, the forecasts show a good recovery, with 505 MSEK expected in 2025. What a financial rollercoaster!
3. Debt: 3/5
Total debt stands at 3,070 MSEK at the end of 2024, which is a decent but not extraordinary debt-to-equity ratio. Operating cash flow of 921 MSEK gives us some breathing space, but we need to keep a close eye on this metric.
4. Return on equity (ROE): 4/5
With ROE forecast at 13.67% for 2025, Hexatronic is showing good profitability. Equity of 4.022 MSEK is solid, and the company knows how to make its shareholders' money work for them.
5. Market performance: 4/5
The average target price set by analysts covering the stock is higher than current prices, and offers enormous potential for appreciation. Analysts are rather optimistic about this stock!
Overall average: 3.6/5
Conclusion: A Nugget to Watch
Hexatronic is a solid business with a few drawbacks. The company is operating in a buoyant market (fibre optics are the future!), but it needs to return to its former profitability. The fundamentals are there, the forecasts are encouraging, and the connectivity sector is not about to grind to a halt.
Price Forecasts & Estimates
2025: With EPS forecast at SEK 2.58 and PE of 13.67, I estimate the price at SEK 27-30 2026: Continued growth, target SEK 32-35 2027: If momentum continues, SEK 38-42
- Signal : Buy
- Budget/Investment : Medium
- Reinforcement required : No
- Exposure : Medium
- Horizon : 1 to 2 years
- Potential profitability : +81% to +100%
- Ref. ISIN code : SE0018040677
- Article updated on 09/05/2026: The shares were sold, generating a profit of 105.69% over a period of nine and a half months 🤑