Stille (OM:STIL) Stock Faces Premium P/E As 10.7% Margin Shapes Bullish Narratives

Stille (OM:STIL) has released its Q2 2026 numbers, with revenue at 186.9 million SEK and basic EPS of 2.29 SEK, while trailing 12 month EPS stands at 8.08 SEK on revenue of 679.6 million SEK. The company has seen quarterly revenue move from 124.7 million SEK in Q2 2025 to 138.8 million SEK in Q3 2025, 174.9 million SEK in Q4 2025, 179.1 million SEK in Q1 2026 and now 186.9 million SEK in Q2 2026, with basic EPS over the same stretch ranging from 1.11 SEK to 3.37 SEK before landing at 2.29 SEK this quarter. With net profit margins currently at a trailing 12 month level of 10.7%, investors are likely to focus on how consistently Stille can convert this revenue base into earnings.

See our full analysis for Stille.

With the latest figures in place, the next step is to see how these results line up with the prevailing narratives around Stille's growth, profitability and risk profile.

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39% earnings growth over last year

• On a trailing 12 month basis, Stille has generated 72.6 million SEK of net income and 8.08 SEK in basic EPS, compared with 55.7 million SEK of net income and 6.20 SEK EPS reported for the trailing period ending Q4 2025, which aligns with the stated 39% earnings growth over the past year.
• Supporters of a bullish view point to this 39% earnings growth and the 9.3% revenue growth forecast each year as signs of solid momentum. However, the quarterly pattern in 2025, where net income ranged from 0.9 million SEK in Q3 to 30.2 million SEK in Q4, shows that earnings have moved around within the year and invites questions about how even that momentum is across different periods.
  • Trailing 12 month revenue has moved from 541.7 million SEK in Q2 2025 to 679.6 million SEK in Q2 2026, which fits with the above market growth profile cited in the analysis.
  • At the same time, individual quarters like Q3 2025 with EPS of 0.10 SEK contrast sharply with Q4 2025 EPS of 3.37 SEK, so anyone leaning on the bullish growth story needs to be comfortable with that intra year variability.

Margins improve to 10.7%

• Stille's trailing 12 month net profit margin now sits at 10.7%, compared with 9.6% a year earlier according to the analysis data, while quarterly net income in 2026 has been just over 20 million SEK in both Q1 and Q2 against revenues of 179.1 million SEK and 186.9 million SEK respectively.
• What stands out for the bullish narrative is that this margin improvement comes alongside higher revenue. However, the quarterly earnings pattern still shows swings, with net income of 9.96 million SEK in Q2 2025 and 30.25 million SEK in Q4 2025, which means any claim of steadily strengthening profitability needs to account for how sensitive margins have been to different quarters.
  • On a trailing basis, net income has moved from 52.2 million SEK in Q2 2025 to 72.6 million SEK in Q2 2026, which matches the picture of better profitability over the year.
  • However, the step down from 30.25 million SEK in Q4 2025 to around 20.9 million SEK and 20.6 million SEK in Q1 and Q2 2026 shows that quarterly profitability can sit below the strongest period even while the overall margin level is higher than a year ago.

Curious how investors turn numbers like a 10.7% margin and 39% earnings growth into a bigger story around Stille, and how that story changes as new data arrives, check out the Curious how numbers become stories that shape markets? Explore Community Narratives.

P/E at 31.2x with DCF gap

• The stock trades on a trailing P/E of 31.2x, compared with about 25.5x for the European medical equipment industry and 25x for peers, while the current share price of 252.0 SEK sits well below the DCF fair value of 461.51 SEK that is referenced in the analysis.
• Critics with a more bearish angle highlight that paying a P/E of 31.2x for Stille, above both industry and peer averages, assumes the 22.3% forecast earnings growth and 9.3% expected revenue growth each year play out as anticipated. They also point to the quarter to quarter earnings variation as a reminder that any slowdown from the recent 39% earnings growth rate could make the current multiple look demanding.
  • Bears argue that a premium P/E multiple leaves less room for disappointment even if the DCF fair value of 461.51 SEK appears much higher than the current 252.0 SEK share price in the supplied data.
  • On the other side, the gap between the share price and that DCF fair value is part of why some investors see upside potential, so the tension between the elevated P/E and the implied DCF value is central to how people judge the risk reward trade off here.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Stille's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

These figures around Stille may point in one direction, but you do not need to take that at face value. Spend a moment with the data and weigh it against your own expectations, then see how that lines up with the 3 key rewards.

See What Else Is Out There

For Stille, the mix of a 31.2x P/E, uneven quarterly earnings and reliance on forecast growth leaves little buffer if expectations slip.

If you want more breathing room than Stille's premium valuation allows, check out 236 high quality undervalued stocks and compare businesses where pricing looks more forgiving right now.

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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