Azelis Group (ENXTBR:AZE) Following Earnings Beat Is The Stock Still Undervalued

What Azelis Group’s latest earnings tell you

Azelis Group (ENXTBR:AZE) has just reported half year 2026 results, giving investors fresh numbers to assess the stock. Sales and revenue were slightly above the prior year, with net income and earnings per share also higher.

See our latest analysis for Azelis Group.

The latest half year earnings have arrived alongside a sharp pick up in momentum for Azelis Group, with a 1 month share price return of 16.21% and a year to date share price return of 27.41%. However, the 1 year total shareholder return is still down 10.75% and the 3 year total shareholder return has fallen 37.89%. This suggests the recent move may reflect a shift in how the market is weighing its earnings progress against past setbacks.

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After the recent rebound in Azelis Group’s share price, but with multi year returns still weak, the balance between risk and reward is not straightforward. Do the current earnings and valuation terms still offer enough upside for new buyers?

Most Popular Narrative: 9.3% Undervalued

Azelis Group’s most followed narrative puts fair value at €13.11 versus a last close of €11.90, which frames the latest earnings in a valuation context.

Azelis Group's organic growth turned positive in Q3 and Q4 of 2024, suggesting improving business conditions and momentum that could lift future revenue and earnings if the trend continues. The company completed 8 acquisitions during 2024 with a strong focus on its strategic markets and indicated a promising M&A pipeline, which should contribute to future revenue growth and potentially expand net margins as synergies are realized.

Read the complete narrative.

Curious what sits behind that uplift in fair value for Azelis Group? The narrative leans heavily on compounded earnings, tighter margins and a specific path for future cash flows.

This narrative applies a 9.22% discount rate to those future cash flows and earnings assumptions, then rolls everything into a single fair value estimate of €13.11 per share. The current share price of €11.90 sits below that mark, which is why the story frames Azelis Group as modestly undervalued on these inputs. The gap is not extreme, so even small changes in growth or margin expectations could shift that conclusion.

Result: Fair Value of €13.11 (UNDERVALUED)

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

However, Azelis Group still faces cost inflation and higher distribution expenses. Any setback in organic growth across weaker regions could quickly challenge this undervalued narrative.

Find out about the key risks to this Azelis Group narrative.

Another View on Azelis Group’s valuation

The first narrative paints Azelis Group as modestly undervalued around €13.11 per share. Yet on a simple earnings yardstick the picture is less comfortable. The stock trades on a P/E of 25.7x versus a fair ratio of 21x, the European Trade Distributors average of 18.6x and a peer average of 13x. That premium suggests less room for error if earnings or margins disappoint.

For a closer look at what this pricing gap could mean in practice, and how much room there is for that P/E to move toward the fair ratio, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

The mix of cautious and optimistic signals around Azelis Group can feel confusing, so do not wait too long to test the numbers yourself and shape your own view 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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