Ambea (OM:AMBEA) Valuation in Focus After Strong Q3 Growth and Profit Jump

Ambea (OM:AMBEA) just released its third quarter earnings, and there is plenty for investors to unpack. Sales, revenue and net income are all up compared to the same period last year.

See our latest analysis for Ambea.

Ambea’s upbeat earnings and talk of new acquisition targets have put real momentum behind the stock, with a 31.4% share price return so far this year. The company’s strong run is further reflected in its impressive 1-year total shareholder return of 36.7% and an exceptional 172% over the last three years, which is a sign that investors see long-term growth potential building.

If Ambea’s growth spurt has sparked your curiosity, this could be the perfect time to discover other healthcare companies shaking up the industry — See the full list for free.

But after such a strong run and solid financial results, is Ambea still trading at a discount, or has the market already factored in its future growth? Could there be more upside for investors, or is everything priced in?

Most Popular Narrative: 13.4% Undervalued

Ambea's last close at SEK127.8 sits below the narrative fair value estimate of SEK147.5, indicating notable headroom according to market consensus. This creates a compelling case for further exploration of what is driving analysts’ optimism around the company’s future prospects.

Ambea is poised to benefit from accelerating demand for elderly and specialized care services across the Nordics. Population aging, increased life expectancy, and a growing prevalence of chronic diseases are contributing factors, supporting long-term volume growth, higher occupancy rates, and new service launches, with a direct positive impact on revenue and earnings.

Read the complete narrative.

Want to see which future growth assumptions convinced analysts to set the bar higher? There is a clear focus on expansion, long-term earnings, and some bold targets. But what is the linchpin behind that valuation leap? Dive in to find out what might unlock the next leg up for Ambea’s share price.

Result: Fair Value of $147.5 (UNDERVALUED)

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

However, substantial reliance on acquisitions and shifting public sector policies could undermine Ambea’s growth story if integration or funding trends become less favorable.

Find out about the key risks to this Ambea narrative.

Build Your Own Ambea Narrative

If you want to dig into the numbers and shape your own perspective, it takes just a few minutes to build your own case. Do it your way

A great starting point for your Ambea research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Smart Investment Opportunities?

Seize the chance to take your portfolio up a notch by tapping into fresh, data-driven stock ideas right now. Opportunities are waiting and you do not want to miss out.

• Capture future growth by targeting companies primed with strong financials and momentum using these 885 undervalued stocks based on cash flows.
• Unlock potential passive income by securing positions in resilient businesses with reliable yields through these 15 dividend stocks with yields > 3%.
• Accelerate ahead of the curve in digital finance by evaluating innovators powering the next wave of blockchain success stories at these 82 cryptocurrency and blockchain stocks.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com