Firefly (OM:FIRE) Stock Faces Valuation Strain Despite Profit Recovery

Firefly’s stock has been climbing in recent weeks, yet today’s earnings left the market weighing a different question. The headline is not revenue growth or a flashy guidance line. The real story is valuation strain. Firefly now trades on a trailing P/E of 20.4x against a discounted cash flow estimate of SEK97.74 per share, while the stock closed at SEK185. That gap forces investors to decide whether solid trailing earnings and a 10.5% net margin still justify paying up, or whether the multiple has already run ahead of the fundamentals.

Is Firefly a quality stock priced for years of earnings strength, or has this 20.4x P/E already stretched far beyond what its cash flows support? Compare the current share price against our detailed valuation analysis for Firefly

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: SEK123.067 million vs. SEK94.569 million (up 30.1%)
• Net Income, Q2 2026 vs. Q2 2025: SEK9.66 million vs. a loss of SEK2.102 million (returned to profit)
• Basic EPS, Q2 2026 vs. Q2 2025: SEK1.61 vs. a loss of SEK0.35 per share (returned to earnings per share)
• Net Profit Margin, Trailing 12 Months vs. Prior Year: 10.5% vs. 9% (improved profitability on trailing results)

If you prefer clean visuals instead of another dense page of earnings tables and ratios, explore Firefly’s full financial picture in charts, including how the current valuation compares with recent results, in our company report for Firefly.

Firefly earnings momentum supports quality narrative

The latest numbers give Firefly’s quality and resilience story some backing. Revenue in Q2 2026 is SEK123.067 million compared with SEK94.569 million a year earlier, while the company moved from a loss to a SEK9.66 million profit. Basic EPS swung from a loss of SEK0.35 to earnings of SEK1.61. A trailing net margin of 10.5% compared with 9% previously fits the idea of a specialized industrial safety business that can convert sales into profit rather than chasing volume for its own sake.

Valuation worries face improving fundamentals check

Bears worried about Firefly’s cyclicality or profit quality now face a set of results that soften some of those fears. The return to profit from a SEK2.102 million loss, combined with a higher trailing net margin, suggests recent projects have not come at the expense of earnings quality. Revenue and EPS both move in the same positive direction, which reduces concern that margin pressure is hiding under the surface. Short term price gains over 7, 30 and 90 days indicate the market is at least acknowledging the stronger print.

Scan Firefly’s full risk profile, including dividend stability and potential structural weak spots, in the independent risk analysis for Firefly which shows 1 important warning sign.

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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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