Hiab Oyj (HLSE:HIAB): Evaluating Valuation After Earnings Reveal Resilience and Upcoming MacGregor Sale

Hiab Oyj (HLSE:HIAB) just reported its latest earnings, showing a 7% decrease in revenue for the second quarter of 2025. The company still achieved a strong operating profit margin and maintained stable demand in key markets.

See our latest analysis for Hiab Oyj.

Despite some recent share price weakness and a 1-day decline of 2.32% following the earnings update, Hiab Oyj’s long-term total shareholder return tells a different story: up 205% over five years and 162% over just the last three. Investors may be weighing the short-term drop in revenue against management’s confidence in future profitability, as well as the sizable boost expected from the upcoming MacGregor sale.

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With Hiab Oyj trading nearly 28% below analyst price targets and showing robust returns over several years, the question for investors is whether the current price undervalues future growth or if the market has already factored it in.

Most Popular Narrative: 20% Undervalued

Hiab Oyj’s most widely followed narrative prices the stock at a fair value significantly higher than the last close, suggesting the market may be leaving long-term potential on the table. The context here is underpinned by structural shifts in business mix and efficiency gains that could shape profitability in coming years.

Continuous investments in automation (e.g., MULTILIFT's move to fully automated duty cycles) and digital platforms (HiConnect, predictive maintenance) position Hiab to capitalize on increased industry demand for smart, safe, and automated load handling solutions. This supports revenue growth and margin expansion.

Read the complete narrative.

What makes this narrative so compelling? It all rests on a growth forecast not just in revenues but in operating margins, underpinned by assumptions about major operational transformation. There is a specific set of forward-looking numbers that form the backbone of this valuation. Are you ready to discover what they are?

Result: Fair Value of $60.09 (UNDERVALUED)

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

However, ongoing trade tensions and softening US demand could spark further volatility. These factors may challenge the bullish case for Hiab Oyj's rapid margin and profit growth.

Find out about the key risks to this Hiab Oyj narrative.

Another View: What Do Earnings Ratios Say?

While the analyst narrative leans bullish, today's valuation by the earnings ratio puts Hiab Oyj in a different light. Its price-to-earnings ratio stands at 19.9x, which is almost identical to the wider European Machinery average, but higher than the average for its direct peers (19.1x) and just above the fair ratio of 19.8x.

This narrow gap signals that, according to market pricing of similar companies, there is little room for upside on multiples alone unless earnings surprise higher. Does this make Hiab Oyj a fair risk or could new developments tip the scale?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hiab Oyj Narrative

If you see the numbers differently or want to put your own research in the spotlight, crafting a personal narrative takes just a few minutes. Why not Do it your way?

A great starting point for your Hiab Oyj research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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