Is Hexagon (OM:HEXA B) Undervalued As Strong Q2 2026 Results Lifted The Stock?

Hexagon (OM:HEXA B) is in focus after publishing its second quarter 2026 results, which showed 12% organic net sales growth, a 25.9% EBIT1 margin and a 149% cash conversion rate.

See our latest analysis for Hexagon.

Hexagon's latest figures appear to have shifted sentiment, with the 1 day share price return of 12.16% and 7 day share price return of 20.04% pushing the stock to SEK95.94, even though the year to date share price return is down 10.34% and the 5 year total shareholder return is down 16.37%.

If Hexagon's move has you thinking about what else is changing fast in automation and sensing, it could be worth scanning 34 robotics and automation stocks

Hexagon’s business metrics look strong and the share price has just reacted sharply. The next step is to see whether that quality and recent excitement line up with a reasonable valuation today.

Most Popular Narrative: 11.6% Undervalued

Hexagon's most followed narrative points to a fair value of SEK108.48, which sits above the last close at SEK95.94 and frames the recent price move in a different light.

The spin-off of the Octave software business, set for H1 2026, is expected to unlock management focus, allow Hexagon to double down on core high-margin precision measurement and robotics technologies, and potentially refocus capital allocation, all supporting higher long-term profitability and improved return on equity.

Read the complete narrative.

Want to understand why this narrative still sees upside even as earnings are forecast to shrink and the assumed future P/E climbs sharply? The full story sits in how revenue, margins and that higher multiple are stitched together into one valuation case.

Result: Fair Value of SEK108.48 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Hexagon's story could be challenged if margin pressure persists, or if weaker demand in European and Chinese construction continues to weigh on Geosystems.

Find out about the key risks to this Hexagon narrative.

Next Steps

With sentiment on Hexagon clearly mixed, it makes sense to look at both sides of the story and move quickly to form your own view using the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Hexagon?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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