Hexatronic Group just printed a muscular Q3 2026, yet the real story is how that strength collides with a stock that has barely moved over the past month. Net sales landed at about SEK 2.5b and adjusted EBITA reached SEK 281m, supported by an 11.3% margin that reflects a telecom infrastructure business regaining its pricing and cost discipline. Your screen shows a share price around SEK 42 after only modest short term gains, which makes today feel less like euphoria and more like a market still arguing with the numbers.
Impressed by Hexatronic Group's 11.3% margin but uneasy that the share price has barely reacted to the Q3 print? Benchmark this setup against a curated group of high quality undervalued stocks, screened for stronger balance sheets and fundamentals with the 201 high quality undervalued stocks .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):SEK 2,498m vs. SEK 1,883m (up 33%)
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Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025):profit of SEK 180m vs. loss of SEK 122m (swing back to positive earnings)
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Basic EPS (Q3 2026 vs Q3 2025):SEK 0.81 per share vs. loss of SEK 0.59 per share (return to positive earnings per share)
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Adjusted EBITA Margin (Q3 2026 vs Q3 2025):11.3% vs. 7.7% (margin improvement of 3.6 percentage points)
Earnings paints one picture, but investors who care about what they are paying for often put more weight on the cash that actually comes through the door. When you line up Hexatronic Group's cash flows against the current share price, the stock could be a dramatic 34% undervalued .
Hexatronic's Bull Story Meets Hard Q3 Evidence
The bullish script says Hexatronic Group wins if North America, Data Center and Harsh Environment gradually reshape earnings quality rather than just add volume.
"Bullish analysts expect Hexatronic Group to keep shifting its mix toward Data Center and Harsh Environment, using recent acquisitions and the submarine cable capacity investment to support a higher profit pool over time."
Q3 lands a few concrete milestones for that idea. Data Center delivered SEK 692m revenue with a margin near 17% and now contributes roughly 40% of profits. Harsh Environment produced an 11% margin and record EBITA as defense connectivity and JOWO-supported assemblies grew, while oil and gas linked dynamic cables stayed weak. Together with North America now the largest region, the earnings mix is already tilting toward the segments the thesis leans on.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all .
Hexatronic bear case: mix shift risk not cleared
The harsher read on Hexatronic Group argues that reliance on weaker segments will blunt the benefit from premium niches.
"Although Hexatronic Group is pushing toward a larger share of Data Center and Harsh Environment in its sales mix, the latest figures show Harsh Environment organic sales declined 4% in Q2 2026 and its adjusted EBITA margin fell from 12% to 10%. This suggests that the mix shift may rely more heavily on a single segment and could limit improvement in group EBITA margin if this weaker area does not recover."
Q3 softens but does not erase that concern. Harsh Environment rebounded to SEK 393m revenue, organic growth of 6% and an 11% margin with record EBITA. Yet the group still leans heavily on Data Center and North America to carry margin progress, so the risk of an unbalanced mix is only partially reduced, not fully disproved.
Hunt For Quiet Price Dislocations
Hexatronic Group just showed how a firmer margin story can sit alongside a muted share price. The real opportunity sits in finding stocks that could be undervalued before sentiment catches up.
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Company 1 - 31% below our estimate - leans into direct to consumer channels and a refreshed denim brand to pull more spending into owned platforms.
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Company 2 - 49% below our estimate - focuses on a record backlog of higher margin mega projects and Indo Pacific military contracts that hinge on disciplined bidding and clean execution.
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Company 3 - 39% below our estimate - shifts its medical technology portfolio toward recurring consumables and infection control solutions while working to reduce extraordinary quality related costs.
Three companies from the same screener. Open every one of the 201 undervalued companies on it →
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.
Companies discussed in this article include HTRO.ST .
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