Tomra Systems (OB:TOM) Wins UK RVM Contract, Is The Stock 17% Undervalued?
Tomra Systems (OB:TOM) is back in focus after securing a contract to supply about 1,200 reverse vending machines to a large UK retail chain, alongside reporting Q2 2026 results with higher sales and net income year over year.
See our latest analysis for Tomra Systems.
The latest contract win and Q2 earnings update come alongside a sharp 1 day share price return of 11.87% and a 7 day share price return of 15.26% at NOK110.3, although the share price is still down year to date and the 1 year total shareholder return has declined 19.79%. This suggests recent momentum is building from a lower base.
If Tomra Systems has you rethinking where growth could come from next, it might be worth seeing what else is moving through automation and 33 robotics and automation stocks
Tomra Systems now trades about 19% below the average analyst price target and at a much steeper discount to some intrinsic value estimates, even after the recent jump. Is the market’s caution still warranted, or is it starting to look overdone?
Most Popular Narrative: 17.4% Undervalued
On the most followed view, Tomra Systems is priced below an implied fair value of NOK133.61, with the current NOK110.3 share price leaving a valuation gap that hinges on ambitious growth and margin assumptions.
The upcoming implementation of new deposit return systems in multiple countries (including Poland, Portugal, Spain, Moldova, and ongoing progress in the UK) is set to significantly expand Tomra's addressable market for reverse vending machines and services, supporting strong future revenue growth and higher recurring service revenues.
Want to see what sits behind that upside case for Tomra Systems? The narrative leans heavily on faster revenue expansion, higher profitability, and a lower future earnings multiple than today.
Result: Fair Value of NOK133.61 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Tomra Systems still faces meaningful risks, including weaker Recycling orders if plastics markets stay soft and potential delays or changes to new deposit return schemes.
Find out about the key risks to this Tomra Systems narrative.
Next Steps
With both risks and rewards in play for Tomra Systems, it makes sense to look closer and decide where you stand. A good place to start is the 2 key rewards and 2 important warning signs.
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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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