A Look at Maurel & Prom (ENXTPA:MAU)’s Valuation After Q3 Sales Drop and Higher Output

Etablissements Maurel & Prom (ENXTPA:MAU) just released its third-quarter and nine-month 2025 sales and production figures, revealing lower sales than last year but higher production volumes. Investors are digesting what these shifts could mean.

See our latest analysis for Etablissements Maurel & Prom.

The stock’s momentum has faded over recent months, with a 30-day share price return of -8.48% and a steeper decline year-to-date. However, its 1-year total shareholder return of 2.76% and notable five-year total return of 357.53% point to substantial long-term value creation. The latest updates on production and sales have refocused attention on the company’s fundamentals and its potential to turn operating strength into future gains.

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With the share price trading almost 30% below analyst targets and long-term returns still strong, is Maurel & Prom an undervalued play on future growth, or are markets already taking everything ahead into account?

Price-to-Earnings of 4.5x: Is it justified?

With Etablissements Maurel & Prom trading at a price-to-earnings (P/E) ratio of just 4.5x, the company appears significantly undervalued relative to both peers and the broader industry, considering the last close price of €4.62.

The P/E ratio shows how much investors are paying for each euro of earnings. In the oil and gas sector, a lower P/E can signal that the market is either underestimating future profitability or expecting earnings challenges ahead. For Maurel & Prom, this low multiple suggests the market is taking a cautious stance and may be overlooking the company's current earnings power or anticipating headwinds.

Comparatively, the company’s P/E of 4.5x stands out against the European oil and gas industry average of 14.2x and the peer average of 22.5x. In addition, the estimated fair P/E ratio is 10.2x, indicating that market sentiment may be more bearish than justified by fundamentals. A rerating could be possible if company prospects or sector conditions improve.

Explore the SWS fair ratio for Etablissements Maurel & Prom

Result: Price-to-Earnings of 4.5x (UNDERVALUED)

However, ongoing net income declines and continued market caution could limit upside. This signals that Maurel & Prom’s undervaluation may not fully reflect business uncertainties.

Find out about the key risks to this Etablissements Maurel & Prom narrative.

Another View: What Does the DCF Model Say?

While Maurel & Prom looks cheap compared to earnings, our DCF model signals an even deeper disconnect. Shares are now trading at a steep 82.5% discount to the estimated fair value of €26.47, as calculated by discounted cash flows. Could the market be overlooking significant long-term value, or are there risks that justify this wide gap?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Etablissements Maurel & Prom for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 853 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Etablissements Maurel & Prom Narrative

If you see things differently, or want to draw your own conclusions, you can build your own analysis in just a few minutes. Do it your way

A great starting point for your Etablissements Maurel & Prom research is our analysis highlighting 3 key rewards and 2 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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