FDJ United (ENXTPA:FDJU) Valuation Check After Sharp Share Price Slide Despite Rising Earnings

FDJ United (ENXTPA:FDJU) has quietly slipped this year, with the stock down sharply over the past 3 months and year, even as revenue and net income keep grinding higher in the background.

See our latest analysis for FDJ United.

That slide has come despite the company completing its rebrand to FDJ United and continuing to post steady top line and earnings growth. The year to date share price return of negative 38.09 percent has dragged longer term total shareholder returns lower and is signalling fading momentum for now.

If FDJ United’s recent weakness has you rethinking your exposure, it might be worth scanning fast growing stocks with high insider ownership for other fast growing businesses where management has meaningful skin in the game.

With earnings still climbing, the stock trading at a steep discount to analyst targets, and sentiment washed out, is FDJ United now a mispriced compounder, or is the market prudently pricing in slower growth ahead?

Most Popular Narrative: 32.4% Undervalued

With the narrative fair value set well above the last close of €22.92, the framework implies investors are heavily discounting FDJ United’s cash generation potential.

The analysts have a consensus price target of €36.589 for FDJ United based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €43.0, and the most bearish reporting a price target of just €27.8.

Read the complete narrative.

Curious why moderate growth assumptions still support a premium profit multiple and a much higher fair value than today’s price, despite recent margin pressure and uncertainty around execution timelines? The narrative spells out the earnings path, margin lift, and valuation bridge that have convinced followers this gap can close.

Result: Fair Value of €33.93 (UNDERVALUED)

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

However, persistent regulatory tightening and delayed cost savings from integration work could weigh on growth. This may challenge the upbeat margin and valuation narrative.

Find out about the key risks to this FDJ United narrative.

Build Your Own FDJ United Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a personalised view in minutes: Do it your way.

A great starting point for your FDJ United research is our analysis highlighting 3 key rewards and 3 important warning signs 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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