Tristel (AIM:TSTL) Stock Price Wavers Despite Strong FY Results

Tristel entered today’s session after a mixed recent run, with the stock up only slightly over the past three months and down about 8% over the last week. Then the full year 2026 figures were released, showing record revenue of £51.1m and adjusted earnings per share of 18.19p, supported by an adjusted earnings before interest, tax, depreciation and amortisation margin of 31%.

The one-day share price move now appears driven largely by sentiment. Short-term traders are reacting to headlines, while the accounts highlight a margin story that is still doing much of the work.

If you like the resilience in Tristel’s earnings profile but feel uneasy about how sentiment is driving volatility in the share price after results day, take a look at our list of solid balance sheet and fundamentals stocks (9 results).

FY 2026 Earnings Summary

• Revenue (FY 2026 vs. FY 2025): £51.117m vs. £46.462m (up 10.0%)
• Net Income (Excl. Extra Items, FY 2026 vs. FY 2025): £7.984m vs. £6.64m (up 20.2%)
• Basic EPS (FY 2026 vs. FY 2025): £0.1668 per share vs. £0.139241 per share (up 19.8%)
• Adjusted EBITDA Margin (FY 2026 vs. FY 2025): 31% vs. 29% (up 2 percentage points)

Earnings grab attention, but investors who care about valuation usually start asking what the cash flows look like behind those profits. Tristel’s income statement is one thing, although on the cash generation alone the stock could be a dramatic 39% undervalued.

Tristel bull case: US-led expansion under the microscope

Optimists have framed Tristel as a dependable compounder built on regulatory wins and overseas growth.

"Strategically, the company’s regulatory progress and expansion into large overseas markets, including the United States following FDA approval, could open a significant new revenue opportunity over the coming years."

The FY 2026 print shows that claim passing its first real test. Americas revenue reached £0.8m and more than tripled. U.S. ultrasound procedures rose from 300,000 to 736,000 and OPH added 73 live accounts with over 100,000 procedures. Group revenue climbed 10% with a 31% adjusted EBITDA margin, so early scale is arriving without eroding profitability.

Bear case stress test: growth fragility and execution risk

On the other side, sceptics argue that Tristel is highly exposed to any wobble in expansion and earnings progress.

"Growth sensitivity: the shares appear to trade on expected earnings progression; weaker-than-expected sales or margin pressure could lead to significant share-price underperformance."

The latest year does not show that risk crystallising in the headline numbers, yet the sensitivity is clear. Adjusted EPS moved 6% while the share price fell about 8% over the past week. Management is guiding to double digit revenue growth and EBITDA above 25%. Any slowdown in the U.S. pipeline or margin drag from added commercial headcount could still hit sentiment quickly.

One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.

Hunt For Quiet Earnings Disconnects

Tristel shows how earnings progress and share price moves can sometimes diverge for a period. The real opportunity is in stocks that could be undervalued before the market reassesses them.

• Company 1 - 32% below our estimate - targets longer defence programmes as underwater sensors and uncrewed systems content grow within existing platforms.
• Company 2 - 41% below our estimate - scales diversified private market strategies as new products and co-investments add to fee-earning assets.
• Company 3 - 25% below our estimate - converts a large defence order backlog into extended equipment programmes tied to long-term commitments.

Those are three of them. See all 7 potentially undervalued companies →

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