Röko (OM:ROKO B) Stock Price Meets Q3 Earnings And Valuation Gap

Röko’s stock closed on Friday at SEK2,145, capping a strong three month run, just as the group dropped its Q3 2026 scorecard. The headline is clear. Net sales reached SEK2,180m and net income landed at SEK226m, powered by a heavy acquisition push and a solid earnings per share print above SEK15.

Short term traders are reacting to the latest tick in the share price. Long term holders are more likely staring at the growing tension between that 40.1x P/E multiple and a discounted cash flow estimate of SEK1,318.58.

Love Röko’s earnings momentum but worried that a 40.1x P/E against a SEK1,318.58 DCF hints at paying up too much for growth? Compare this quarter with companies that have sturdier valuation support using the 193 high quality undervalued stocks.

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): SEK2,180m vs. SEK1,518m (+43.7%)
• Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): SEK226m vs. SEK146m (+54.8%)
• Basic EPS (Q3 2026 vs. Q3 2025): SEK15.45 vs. SEK9.98 (+54.8%)
• Trailing 12M Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): SEK863m vs. SEK721m (+19.7%)

Röko’s leverage is rising as deals drive nearly half the growth. Ask Charlie what makes Röko so confident adding more debt.

Röko’s deal machine, tested against Q3 delivery

Röko’s growth story leans heavily on the idea that disciplined acquisitions and mix upgrades can keep earnings compounding.

"Ongoing consolidation of smaller niche businesses continues to create a large pool of potential targets, and Röko’s track record of acquiring 34 companies since 2019, including 12 platform companies in 3.5 years, supports the case for continued acquisition driven growth in net sales and EBITDA."

Six more deals since September 2025, adding about SEK1.5b of annual turnover and lifting Q3 net sales by 44%, indicate that pipeline and execution are still aligning with that ambition. At the same time, 57% adjusted EBITDA growth and 30% 9M EBITDA growth suggest that earnings are currently tracking the roll up plan.

Röko risk narrative, leverage and margins under scrutiny

Concerns focus on whether Röko is leaning too hard on lower margin, more asset heavy acquisitions just as leverage edges higher.

"Several recent acquisitions have below average EBITDA margins and are more asset heavy. This has already diluted return on capital employed and could limit future margin expansion and earnings if integration and margin improvement progress more slowly than expected."

ROCE has slipped on an ex intangibles basis and sits at 15.5%, and net debt to EBITDA is now 2.6x after roughly SEK2b of net investments. The latest quarter therefore supports the idea of near term margin and return dilution, even though ROCE on a like for like view is modestly better year to date.

That disagreement has a full argument behind it. → Uncover the lower Fair Value this Narrative argues for.

Hunt For Mispriced Earnings Power

Röko’s latest quarter highlights the balance between a rich P/E and a differing DCF view. The real opportunity is finding stocks that could be undervalued before the market fully recognizes their earnings power.

• Company 1 - 33% below our estimate - manages fee based capital into renewable power, social assets and tax-efficient retail products as identified fundraising targets convert into fresh inflows.
• Company 2 - 40% below our estimate - wins defence electronics manufacturing mandates as a major UAV contract and expanding factories feed a swelling backlog and raised guidance.
• Company 3 - 23% below our estimate - ramps high value healthcare and capsule components as new capacity, integration efforts and footprint changes reshape its margin mix toward higher value segments.

Those are three of them. See every one of the 193 undervalued companies on it →

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