Arcadis (ENXTAM:ARCAD): Valuation Insights After Securing $49 Million US Government Contract in Eastern Europe

Arcadis (ENXTAM:ARCAD) just landed a $49 million contract with the USACE Europe District to deliver environmental compliance services in Eastern Europe. This marks an expansion of its work with government clients across 26 countries.

See our latest analysis for Arcadis.

Despite landing a major government contract and recently presenting at key industry conferences, Arcadis has not been able to reverse recent momentum. The company reported a one-year total shareholder return of -39.96 percent. Over a longer period, however, Arcadis has seen steady growth, delivering a 56.75 percent total shareholder return over five years.

If Arcadis’ international win has you curious about what else is out there, this could be a great moment to broaden your search and discover fast growing stocks with high insider ownership

With shares now trading well below analyst targets and the company delivering consistent long-term gains, investors must ask whether Arcadis is undervalued after this recent contract win or if the market is already reflecting its future growth.

Most Popular Narrative: 38.1% Undervalued

According to the most widely followed narrative, Arcadis’s fair value stands in sharp contrast to its current share price. This implies there is potential for a substantial upside if projections play out as expected. Enthusiasm around digital transformation and multi-year public spending are at the heart of this story.

“Robust investment in digitalization, including proprietary platforms (EDA, EDA Lite), AI, and enterprise asset management, is enhancing Arcadis' capabilities in smart infrastructure. This is enabling cross-selling, greater recurring revenues, and supporting structural margin improvement. Public sector spending reviews in the UK, US, Canada, and Europe have removed near-term uncertainty and unlocked large-scale project pipelines (e.g., AMP8 water, defense, rail, and urban infrastructure) that are expected to drive revenue acceleration and support earnings visibility into 2026 and beyond.”

Read the complete narrative.

Curious what is powering this valuation? The narrative leans on a blend of fast-changing digital capability, ramping profit margins, and bold profit multiples. Find out which numbers and bets are generating such bullish fair value projections.

Result: Fair Value of €57.93 (UNDERVALUED)

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

However, slowing revenue growth and ongoing heavy investments could pressure earnings. This may potentially challenge the bullish outlook around Arcadis's fair value projections.

Find out about the key risks to this Arcadis narrative.

Build Your Own Arcadis Narrative

If you have a different perspective or want to dive into the numbers yourself, it takes just a few minutes to build your own view and storyline, your way. Do it your way

A great starting point for your Arcadis research is our analysis highlighting 5 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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