Systemair (OM:SYSR) Reports Organic Growth And New Orders, Is The Upside Already Priced In?

Systemair (OM:SYSR) is back in focus after its first quarter update, which highlighted continued organic growth, an adjusted operating margin close to the 10% target, the Temspec acquisition and a new Finnish data center cooling order.

Over the past quarter Systemair has seen firm positive momentum, with a 90 day share price return of 16.56% and a 1 year total shareholder return of 3.26%. The 3 year total shareholder return of 40.00% points to a much stronger longer term picture.

Spot 55 AI infrastructure stocks that, like Systemair's new Finnish data center order, are positioned to serve growing cooling and power demands in data heavy facilities.

After a 16.6% 90 day share price move and with Systemair now trading below both analyst price targets and intrinsic value estimates, the gap has narrowed but not closed. How much room does that really leave on the table?

Price to earnings of 24x for Systemair, is it justified?

Systemair is trading at a P/E of 24x, which puts a clear price tag on its recent earnings progress and the 16.6% 90 day share price move.

The P/E ratio compares the share price to earnings per share and is a common way investors judge how much they are paying for current profits. For a company like Systemair, which reported SEK 12,502.7m in revenue and SEK 760.8m in net income, the multiple signals how the market values its earnings profile in the capital goods sector.

At 24x earnings, Systemair is described as expensive versus the European Building industry average of 23.5x and also above an estimated fair P/E of 19.6x. That suggests the market is assigning a richer multiple than both the industry benchmark and the level the fair ratio model points to, even though the stock is flagged as good value against a higher peer average P/E of 28.5x.

Explore the SWS fair ratio for Systemair .

Result: Price-to-earnings of 24x (OVERVALUED).

However, Systemair still faces risks if sector P/E multiples compress or data center related orders slow, which could quickly challenge the current pricing narrative.

Find out about the key risks to this Systemair narrative.

Another view on Systemair using the SWS DCF model

The P/E view presents Systemair as expensive, yet the SWS DCF model suggests a different perspective. With the share price at SEK 88 and the model indicating fair value around SEK 108.29, Systemair appears undervalued. Which signal should carry more weight for you at the moment?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Systemair for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 267 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.