Afry (OM:AFRY) Could Be 7% Below Fair Value On Higher Third Quarter Profit

Simply Wall St · 2d ago

Afry (OM:AFRY) just released its third quarter update, with profitability metrics moving ahead of last year as net income and earnings per share from continuing operations both came in higher than the 2024 period.

The latest move in Afry’s story is playing out in the share price. The stock has jumped with a 1 month share price return of 24.01% and a 7 day gain of 21.84%, yet the year to date share price return is still down 17.11% and the 1 year total shareholder return has fallen 23.81%. This leaves recent momentum looking more like a sharp rebound than a completed turnaround.

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Afry’s rebound has been sharp and emotional, not gradual and quiet. For investors watching this swing, the key question is whether it argues for getting in now or waiting for a calmer entry based on the numbers.

Most Popular Narrative: 7% Undervalued

Afry closed at SEK125.5 against a widely followed fair value estimate of SEK135.17, so the current rebound sits below that narrative anchor while still reflecting investor caution after a weak year for the share price.

The main factor that has to go right is AFRY executing on its operational efficiency and utilization roadmap, including making completed restructuring and AI driven delivery changes show up consistently in group margins, despite pockets of pricing pressure in real estate and automotive related work.

See why 16 investors see Afry as 7% undervalued.

Result: Fair Value of SEK135.17 (UNDERVALUED)

Still, Afry’s recent negative adjusted organic sales trend and roughly 3x EBITDA leverage both leave the upbeat earnings narrative exposed if demand or cash conversion disappoints.

Find out about the key risks to this Afry narrative.

Next Steps

The story so far paints a mixed picture for Afry, with sharp price swings and a fair value anchor pulling in different directions. Act while the data is fresh and weigh both sides of the argument by reviewing the 2 key rewards and 1 important warning sign.

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