Medistim (OB:MEDI) Stock Rallies On Record Margins As Capacity Questions Linger

Medistim stock went into this Q2 print on a strong run, up about 10% over the past month and closing at NOK246 on Friday. The market already priced in a lot of optimism. The earnings release delivered hard proof of that optimism, with record quarterly revenue of NOK202.0m and EBIT of NOK65.3m, supported by a Q2 EBIT margin of 32.3%.

In the short term, the story is a rich multiple on a stock that has kept surprising on profit quality. The longer-term question for investors is whether Medistim can continue to develop from this earnings base without stretching that valuation too far.

Is Medistim’s rich P/E near 27x, together with a DCF value above the current NOK246 price, pointing to genuine upside, or is it a value trap driven by thin dividend cover? Compare the trade off directly in our valuation analysis for Medistim

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs Q2 2025): NOK 202.0m vs NOK 169.1m (up about 19.5%).
• Net Income (Q2 2026 vs Q2 2025): NOK 52.2m vs NOK 43.0m (up about 19.9%).
• Basic EPS (Q2 2026 vs Q2 2025): Not disclosed for Q2 2026 vs NOK 2.35 in Q2 2025 (latest quarter EPS not provided).
• EBIT Margin (Q2 2026 vs Q2 2025): 32.3% vs about 31.0% (record Q2 profitability on this measure).

Prefer clean, interactive charts over dense rows of earnings figures and margins? See Medistim’s valuation and overall financial picture laid out in one visual dashboard in our company report for Medistim.

Medistim bull case: recurring engine and scale claims tested

Bulls argue Medistim is building a high quality, recurring and scalable earnings engine powered by its own platforms and higher value software like MiraQ and INTUI. The latest quarter goes some way to backing that up. Own products rose strongly on a currency neutral basis and recurring items such as probes, PPP cards and leases now make up about 70% of rolling 12 month sales. That is a clear step toward the recurring revenue narrative. Cardiac surgery remains the growth motor, with procedure volumes from capital probe sales up more than 30% in the first half. EBIT margins above 30% in both Q2 and H1 show that heavier spend on sales coverage, Japan setup and clinical trials is not eroding profitability. The ambition to reach NOK 1b of annual revenue still needs more time, but the building blocks look aligned with that story.

Medistim bear case: growth durability and mix risks under review

The bear story focuses on growth extrapolation, product mix risk and pressure on margins as Medistim invests for expansion. Some of those concerns remain visible. Vascular revenue declined in Q2 as sales shifted from higher priced Ultimate systems toward cardiac only systems, while INTUI software is cardiac only. That highlights real product mix sensitivity. Third party products also fell over H1, even if this is partly a tough comparison. Working capital has increased and days sales outstanding sit nearer 60 days than the 45 day target, which can strain cash conversion despite record EBIT. Probe capacity is tight enough that an automation project is needed, which could limit upside if ramp up is slower than planned. At the same time, gross margin around 82% and tariff costs absorbed without margin slippage do not currently support a margin collapse narrative.

Review whether tight probe capacity, product mix shifts, and weaker dividend cover are early signals of deeper issues in our risk analysis for Medistim which shows 1 important warning sign.

Keep Your Edge With Medistim Insights

If Medistim’s record Q2 margins and rich P/E have your attention, register for free with Simply Wall St and add it to your Watchlist to track the share price against fair value and wait for a setup that fits your plan. Once you own it, use the Portfolio Command Center to cut through market noise and focus on the key updates that matter to your holdings. For a broader view on Medistim and similar stocks, tap into thousands of investor views through the Community. This way you uncover potential catalysts and risks earlier and give yourself a better chance of staying ahead of the market.

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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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