Signify (ENXTAM:LIGHT): Evaluating Valuation After Lowered 2025 Outlook and Weaker Q3 Results

Signify (ENXTAM:LIGHT) shares came into focus after the company released its third-quarter results and adjusted its 2025 outlook, citing softer US market conditions and weaker OEM demand. Both sales and net income declined year over year.

See our latest analysis for Signify.

Signify’s share price has felt the impact of its recent outlook revision, dropping 9.4% in a single day and extending its 7-day decline to over 7%. While Q3 results and the lowered 2025 forecast have weighed on sentiment, the 1-year total shareholder return stands at -5.2%, reflecting a period of fading momentum in both the short and long term.

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With shares now trading roughly 17% below analyst price targets and more than 50% below some intrinsic value estimates, the key question becomes: Is Signify a value play after recent setbacks, or has the market fully accounted for its challenges and future prospects?

Most Popular Narrative: 14.9% Undervalued

Signify’s most widely followed valuation narrative values the shares roughly 15% higher than the recent close, suggesting the market may be discounting its prospects too steeply after recent setbacks. This narrative is based on Signify’s ability to capitalize on connected lighting and smart city opportunities.

"Accelerating adoption of connected and specialty lighting, supported by urban infrastructure upgrades, demand for smart city solutions, and strong project momentum globally, is steadily growing Signify's addressable market. This is expected to drive sustained comparable top-line growth and greater pricing power as connected products account for a larger share of sales. Impact: Supports revenue growth and lifts gross margin through a favorable mix."

Read the complete narrative.

Ever wondered what core assumptions are powering this upbeat valuation? There is a bold growth trajectory and a margin story at play here. The full narrative examines key earnings and profit multiplier shifts that could change perceptions of Signify’s value. Consider the forecasts and benchmarks that are gaining attention among analysts and investors.

Result: Fair Value of €24.78 (UNDERVALUED)

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

However, persistent price pressure and the decline of legacy lighting revenues could limit Signify’s ability to deliver on projected long-term growth and margin gains.

Find out about the key risks to this Signify narrative.

Build Your Own Signify Narrative

If you see things differently or want to explore the figures firsthand, you can quickly develop your own perspective and narrative. Do it your way

A great starting point for your Signify research is our analysis highlighting 4 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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