Assa Abloy AB Class B

ASSA B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 591.00	Gky	Jdqpkbvfd

Assa Abloy Pricing Strength Delivers Strong Margins in Q4; Shares Attractively Priced

Denise Molina

Feb 4, 2022

Wide-moat Assa Abloy beat the fourth-quarter company-provided consensus operating profit margin, as well as our forecasts, which led to a 5% rally in shares at the time of writing. Shares looks attractively priced compared with our SEK 300 fair value estimate. The 15.7% operating profit margin for the group expanded by 80 basis points year over year despite a 60-basis-point headwind from the extraordinary inflationary environment. Fourth-quarter revenue growth was strong with a 10% organic increase, with operating leverage also helping margin improvement.

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