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NV Bekaert (ENXTBR:BEKB) Lifted Earnings On Lower Sales, Is The 10% Undervaluation Real?

Simply Wall St · 2d ago

Why NV Bekaert’s latest earnings matter for shareholders

NV Bekaert (ENXTBR:BEKB) has just reported half year 2026 results that show lower sales but higher net income and earnings per share compared with the same period last year. That mix deserves closer attention.

For the half year to 30 June 2026, the company reported sales of €1,863.27m compared with €1,953.08m a year earlier. Over the same period, net income was €94.31m compared with €81.72m.

Basic earnings per share from continuing operations came in at €1.93 compared with €1.59 a year ago. Diluted earnings per share from continuing operations were €1.92 compared with €1.59.

This combination of softer sales and higher earnings can point to changes in pricing, product mix or cost structure. For anyone tracking NV Bekaert stock, it raises questions about how repeatable these margins might be and what that implies for future profitability.

See our latest analysis for NV Bekaert.

NV Bekaert’s share price has eased in recent months, with a 90 day share price return that declined 10.57% and a 7 day share price return that declined 6.86%, even though the 1 year total shareholder return is 11.33%. The latest half year earnings, which showed higher net income and earnings per share alongside softer sales, give investors new information to weigh against that fading short term momentum and more moderate longer term total shareholder returns of 1.04% over three years and 12.61% over five years.

If these results have you reassessing your watchlist, it can be useful to look at other companies exposed to industrial demand and infrastructure investment, including 36 power grid technology and infrastructure stocks

So with NV Bekaert’s shares weaker over the past quarter yet earnings per share higher, does the current price still offer a favourable balance between risk and potential reward as investors turn to the valuation work next?

Most Popular Narrative: 10.2% Undervalued

The most followed narrative currently puts NV Bekaert’s fair value at €43.83, which sits above the last close of €39.35 and frames the recent earnings in a wider context.

Structural momentum in infrastructure and energy investments globally, particularly demand for steel wire in renewable energy projects (wind, solar, grid buildouts), positions Bekaert for long-term revenue growth as these sectors accelerate after current market uncertainty subsides.

Read the complete narrative.

Want to see how this fair value is built? Analysts are leaning on measured revenue growth, a step up in profit margins, and a different earnings multiple than today. Curious which of those carries the most weight?

Based on this narrative, the fair value estimate of €43.83 suggests NV Bekaert is priced at a discount today and that the current share price does not fully reflect the earnings and margin profile analysts are modelling using a 9.14% discount rate.

Result: Fair Value of €43.83 (UNDERVALUED)

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

However, NV Bekaert’s story could shift if steel overcapacity continues to pressure tire cord pricing or if weaker demand in Europe and North America becomes more persistent.

Find out about the key risks to this NV Bekaert narrative.

Another View on NV Bekaert’s Valuation

The narrative around NV Bekaert points to a fair value of €43.83, which suggests the stock is 10.2% undervalued at €39.35. Yet on simple P/E metrics, the picture looks less generous. The current P/E of 23.8x sits above the fair ratio of 20.4x, the European Metals and Mining average of 17.5x, and a peer average of 13.8x. That gap implies investors are already paying a premium, so it is worth considering how comfortable you are with that valuation if future results do not align with the narrative.

See what the numbers say about this price — find out in our valuation breakdown.

ENXTBR:BEKB P/E Ratio as at Aug 2026
ENXTBR:BEKB P/E Ratio as at Aug 2026

Next Steps

With sentiment mixed between earnings strength and valuation questions, it may be useful to quickly review the full picture and form your own judgment based on 2 key rewards and 3 important warning signs

Looking for more NV Bekaert investment ideas?

If NV Bekaert’s story has sharpened your thinking, do not stop here. The next strong idea could be waiting in plain sight.

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.