Elkem (OB:ELK) Could Be 6% Undervalued Following Weaker Quarterly Results

Elkem (OB:ELK) released second quarter 2026 results showing weaker financial performance, with revenue and profit metrics under pressure. For investors, the focus now shifts to what the latest sales and loss figures indicate about the company’s earnings profile.

See our latest analysis for Elkem.

Despite the weak second quarter, Elkem’s share price has shown improving momentum, with a 90 day share price return of 11.16% and a 1 year total shareholder return of 25.09%. This suggests investors have recently become more willing to look past short term losses.

If you are weighing Elkem against other opportunities in materials and infrastructure, this could be a good moment to broaden your search and review 36 power grid technology and infrastructure stocks

Elkem combines a long established materials business with share price momentum that has surprised some, especially after reporting recent losses. The next step is to assess whether the stock already reflects that strength or still offers value.

Most Popular Narrative: 5.7% Undervalued

At a last close of NOK32.28 versus a narrative fair value of NOK34.24, Elkem is framed as modestly undervalued, with that gap driven by detailed long term earnings and margin assumptions under a single, coherent story.

Initiatives to supply the green transition, such as R&D in carbon capture, storage, and using biogenic materials, could enhance long-term revenue and net margins by meeting rising demand for sustainable products.

Read the complete narrative.

Curious what sits behind that fair value for Elkem? The narrative leans heavily on rising earnings power, firmer margins, and a future profit multiple that breaks from today’s profile.

Result: Fair Value of NOK34.24 (UNDERVALUED)

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

However, Elkem’s story still faces pressure from global trade tensions and weaker demand in key regions, which could keep margins and project returns under strain.

Find out about the key risks to this Elkem narrative.

Next Steps

Given the mixed signals around Elkem’s risks and rewards, it may be useful to take prompt action and evaluate the full picture for yourself using the 2 key rewards and 2 important warning signs.

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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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