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Lagercrantz Group (OM:LAGR B) has just crossed SEK10b in revenue, with EBITDA up 20% and a margin of 18%, while the Electrify division delivered a 55% increase in EBITDA and a 21.2% margin.
See our latest analysis for Lagercrantz Group.
The earnings release and acquisition focus appear to have reset sentiment, with the 1 day share price return of 10.88% and 7 day return of 13.09% lifting the year to date share price return to 9.40%. This comes even though the 1 year total shareholder return is still slightly negative and the 5 year total shareholder return of 216.06% reflects a strong longer term journey.
If Lagercrantz Group's latest move has you thinking about where else growth could emerge, this is a good moment to scan 24 power grid technology and infrastructure stocks as another way to spot infrastructure driven opportunities.
With record SEK10b revenue, strong EBITDA metrics and a 10.9% one day jump already on the tape, the key question for you is whether Lagercrantz is still undervalued or if the market is already pricing in future growth.
Most Popular Narrative: 9.8% Undervalued
The most followed narrative suggests a fair value of SEK245.17 per share, compared with the last close at SEK221.20, and anchors that view on growth, margins and cash flows discounted at 6.49%.
The group's ongoing focus on building out proprietary, specialized, and exportable products (targeting 85% of revenues from such products) is expected to enhance pricing power and sustain higher margins versus more commoditized peers, with a medium-term impact on both margin expansion and earnings quality.
Curious what kind of revenue trajectory and margin profile could justify that valuation gap? The narrative leans heavily on compounding earnings and a premium multiple tied to those projections.
Result: Fair Value of SEK245.17 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on continued acquisition success and steady organic growth. Any integration missteps or slower demand in key segments could quickly challenge that 9.8% undervaluation story.
Find out about the key risks to this Lagercrantz Group narrative.
Another View: Rich P/E Puts Pressure On Expectations
Our DCF model is not the only yardstick you can look at. On earnings, Lagercrantz trades on a P/E of 39.9x, while the European Electronic industry sits at 24.9x, peers at 27.6x, and the fair ratio points to 25.2x. That is a clear premium, so investors may wish to consider whether they are comfortable paying up for this growth story.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Lagercrantz Group Narrative
If you are not fully on board with these narratives or prefer to lean on your own work, you can build a custom view in minutes by starting with Do it your way .
A great starting point for your Lagercrantz Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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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.
Companies discussed in this article include LAGR-B.ST .
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