A Fresh Look at Attendo (OM:ATT) Valuation After Profitability Outpaces Revenue Decline

Attendo (OM:ATT) has drawn renewed attention after its latest earnings update. While sales and revenue slipped slightly compared to last year, both net income and earnings per share saw significant gains for the quarter and the year to date period.

See our latest analysis for Attendo.

Attendo’s recent buyback and improving profitability have clearly caught investors’ attention, contributing to the stock’s sharp momentum. The 1-month share price return stands at 17.8%, and total shareholder return over the past year has soared to 70.7%. Looking further back, the 3-year total shareholder return of 232% signals a meaningful turnaround and sustained confidence in Attendo’s trajectory.

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With such strong share price momentum and visible gains in profitability, the question for investors is whether Attendo’s stock still offers attractive value or if the recent rally has fully priced in its future growth potential.

Most Popular Narrative: 3.4% Undervalued

Attendo’s most widely followed narrative suggests its fair value now stands above the current share price, reflecting solid confidence in better growth and lower risk. This raises the stakes for investors paying close attention to the fundamentals driving this revised target.

Accelerating capacity expansion through new care home openings and targeted acquisitions is positioning Attendo to benefit from increasing elderly care demand, which is driven by demographic shifts in Scandinavia and Finland. This supports sustained revenue and occupancy growth. Positive regulatory changes in Finland, such as the relaxation of mandatory municipal capacity usage after a 3-year transition and ongoing demand queue build-up, are likely to boost market share for private providers like Attendo and enhance long-term revenue visibility and growth.

Read the complete narrative.

Curious what crucial numbers give analysts greater confidence in Attendo right now? The narrative’s valuation is powered by bold growth assumptions and another sharp move in profit margins. Want the details? Jump into the full story behind this fair value.

Result: Fair Value of $83.50 (UNDERVALUED)

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

However, risks remain, including contract terminations in Sweden and exposure to regulatory or policy changes. Both factors could hamper Attendo’s growth outlook.

Find out about the key risks to this Attendo narrative.

Build Your Own Attendo Narrative

If you want a different perspective or prefer to dive into the numbers on your own, you can shape your own narrative in just a few short minutes: Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Attendo.

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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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