Is Loomis (OM:LOOMIS) Undervalued Following Strong Second Quarter Earnings?

Loomis (OM:LOOMIS) released its second quarter 2026 results on July 24, reporting higher sales and net income than a year earlier. This change appears to have influenced recent share performance.

See our latest analysis for Loomis.

The earnings release appears to have been a clear catalyst, with Loomis’s 1 day share price return of 4.32% lifting the stock to SEK519.5 and adding to a 36.28% year to date share price return and 117.51% five year total shareholder return. Together these figures point to building momentum and a stronger long term story in investors’ eyes.

If this earnings move has you thinking about where else opportunity might be forming, it could be worth scanning a focused list of 35 power grid technology and infrastructure stocks

Loomis now sits close to its analyst price target after a strong run, yet headline valuation metrics still suggest a sizeable intrinsic discount. Does that recent earnings momentum leave more upside for new buyers, or mainly risk?

Most Popular Narrative: 2% Overvalued

The most followed Loomis narrative puts fair value at SEK511.25, slightly below the latest close at SEK519.5, and builds its case on detailed earnings, margin and discount rate assumptions.

Expansion into adjacent, high-security logistics services (e.g., Loomis Pharma & cross-border transport for valuables) leverages Loomis' existing expertise and network, opening new, less commoditized markets with higher margins and recurring revenue profiles, which is presented as supporting future top-line and net margin growth.

Read the complete narrative.

Want to see how this growth story actually gets priced in? The narrative rests on a specific path for revenue, margins and future earnings multiples that might surprise you.

Result: Fair Value of SEK511.25 (OVERVALUED)

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

However, Loomis still carries key risks, including ongoing pressure from declining ATM and cash volumes, as well as the uncertain payoff from newer services like Loomis Pay and SME/Pay.

Find out about the key risks to this Loomis narrative.

Another View: Loomis Through Our DCF Lens

While the most followed Loomis narrative points to a small 2% premium to its SEK511.25 fair value, the Simply Wall St DCF model paints a very different picture. On that framework, Loomis at SEK519.5 trades at a very large 65% discount to an estimated SEK1,483.34 per share. Which story do you lean toward?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Loomis for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 247 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With Loomis showing both potential rewards and clear risks, it helps to move quickly, test the assumptions, and weigh the trade offs yourself using the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Loomis?

If Loomis has sharpened your focus on quality opportunities, do not stop here. Broaden your watchlist with a few targeted idea lists built from hard numbers.

• Target resilient cash generators by scanning companies with dependable earnings and stronger finances through the solid balance sheet and fundamentals stocks screener (416 results).
• Hunt for potential mispricings by reviewing stocks that combine quality fundamentals with attractive pricing in the 247 high quality undervalued stocks.
• Prioritise stability and downside protection by checking companies that score well on risk metrics inside the 297 resilient stocks with low risk scores.

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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