Hoist Finance (OM:HOFI) Net Income Doubled, Is The Stock Now Too Expensive?

Hoist Finance (OM:HOFI) has drawn investor attention after reporting second quarter 2026 net income of SEK 474 million, compared with SEK 234 million a year earlier. This result signals a significant earnings shift for the stock.

See our latest analysis for Hoist Finance.

The strong second quarter result has arrived alongside a powerful share price move, with Hoist Finance’s 30 day share price return of 18% and year to date share price return of 90.21% reinforcing very strong 1 year and 3 year total shareholder returns.

If recent gains in Hoist Finance have you rethinking your watchlist, this could be a good moment to broaden your search and uncover 104 top founder-led companies

Hoist Finance now sits on a much higher share price and a sharp jump in quarterly net income. The key issue is whether this move mainly reflects a stronger underlying business or a swing in market sentiment that valuation now needs to test.

Most Popular Narrative: 17% Overvalued

Hoist Finance closed at SEK217.60 compared with a widely followed fair value narrative of SEK186. The gap between price and narrative valuation puts the underlying assumptions in focus.

EU wide regulatory harmonisation for NPL management and the company's anticipated SDR status in 2026 will open access to more attractive, less capital intensive portfolios (especially unsecured), potentially enhancing future net margins and return on equity.

Read the complete narrative.

Want to understand why this fair value sits below today’s Hoist Finance share price? The narrative leans on rising NPL volumes, richer unsecured portfolios and thicker margins. Curious which growth, profitability and discounting assumptions need to hold up for that view to make sense.

Result: Fair Value of SEK186 (OVERVALUED)

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

However, the Hoist Finance story also carries pressure points, including rising funding costs and limits on unsecured NPL purchases while the company awaits SDR status in 2026.

Find out about the key risks to this Hoist Finance narrative.

Another View on Hoist Finance Using Earnings Multiples

The narrative fair value for Hoist Finance sits at SEK186, which points to the stock looking 17% overvalued against that framework. Yet on simple earnings multiples the picture is more forgiving. Hoist trades on a P/E of 13.8x compared with a peer average of 17.5x and an estimated fair ratio of 15.4x. That combination suggests the market is applying a tighter valuation than both peers and the fair ratio imply, which can mean less room for disappointment or less credit for future progress. Which version of “fair” do you trust more right now: the story driven fair value or the simple earnings multiple?

For a closer look at how this earnings based view stacks up against other angles on Hoist Finance, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals around Hoist Finance’s valuation and outlook, it makes sense to review the numbers yourself and act early if your view differs. To see how the balance of concerns and positives stacks up, take a closer look at the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Hoist Finance?

Hoist Finance may have your attention right now, but you do not want to miss other opportunities that could suit your goals and risk preferences.

• Spot potential value opportunities early by scanning 247 high quality undervalued stocks that combine solid fundamentals with more modest pricing.
• Strengthen your income focus by checking companies in the 443 dividend fortresses that pair higher yields with business resilience.
• Reduce portfolio stress by reviewing 297 resilient stocks with low risk scores that score well on financial stability and downside protection.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com