Imerys (ENXTPA:NK) Could Be 2% Undervalued As Earnings Slip
Imerys earnings move puts recent share performance under the spotlight
Imerys (ENXTPA:NK) just reported half year 2026 earnings that showed €1,740.2 million in sales and €49.4 million in net income, both below the levels reported a year earlier.
Basic earnings per share from continuing operations came in at €0.58, with diluted EPS at €0.57, compared with higher figures in the prior period. This earnings profile now sits against a stock that has risen over the past year.
See our latest analysis for Imerys.
Despite softer half year earnings, Imerys shares have shown improving momentum, with a 12.22% 7 day share price return and 11.91% 30 day share price return, while the 1 year total shareholder return of 19.48% contrasts with weaker 3 and 5 year total shareholder returns.
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Bulls point to Imerys’ recent share price strength and value score, while bears focus on softer earnings and weaker multi year returns. Which side do the current valuation numbers appear to support next?
Most Popular Narrative: 2.3% Undervalued
Imerys closed at €24.24 while the most followed narrative sets fair value close to €24.82. That small gap still rests on some punchy long term assumptions.
Imerys is well positioned to benefit from the rapid expansion of electric vehicles (EVs) and battery storage, as demonstrated by robust growth in its Graphite & Carbon business and the strategic EMILI lithium project, which should drive revenue and margin improvement as lithium demand and prices recover toward the end of the decade.
Want to see what sits behind that fair value for Imerys? The narrative leans on steadier top line growth, meaningfully higher margins and a very different earnings base.
Result: Fair Value of €24.82 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Imerys story also hinges on the EMILI lithium project remaining economic, and on mature European markets avoiding a prolonged stagnation that keeps revenues under pressure.
Find out about the key risks to this Imerys narrative.
Next Steps
With sentiment clearly split on Imerys after these results, it makes sense to move quickly, review the full data, and weigh both sides of the story using the 3 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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