Lagercrantz Group (OM:LAGR B) Stock Can Q2 Earnings Justify A P/E Of 34

Lagercrantz Group walked into today’s Q2 2027 report with the share down over the past week, month and quarter, even as the broader story around earnings power kept improving. The fresh numbers were punchy. Revenue reached SEK 2,990m and net income landed at SEK 340m, backing a trailing P/E of 34 that already prices in a strong future.

The real tension for investors now is time horizon. In the short term, a drifting share price can make the stock look tired. On a multi year view, rising trailing earnings and a 31% return on equity suggest the valuation debate is only just starting.

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Q2 2027 Lagercrantz Group Earnings Summary

• Revenue (Q2 2027 vs. Q2 2026): SEK 2,990m vs. SEK 2,457m (up 21.7%)
• Net Income (Excl. Extra Items, Q2 2027 vs. Q2 2026): SEK 340m vs. SEK 260m (up 30.8%)
• Basic EPS (Q2 2027 vs. Q2 2026): SEK 1.65 vs. SEK 1.26 (up 30.7%)
• EBITA Margin (Group level, Q2 2027 vs. prior period commentary): 17.8% with management targeting 20% over the medium term

Earnings tell you what Lagercrantz Group booked this quarter, but cash flows show what actually hit the corporate bank account and can support reinvestment or distributions over time. If you focus on Lagercrantz Group's cash generation alone, the stock could be a slight 6% undervalued.

Lagercrantz bullish thesis: margin and mix on trial

The upbeat story has been that Lagercrantz can lift profitability by leaning into acquisitions and a richer product mix.

"The company is increasing the share of proprietary products, now around 80% of revenue with an ambition to reach 85% within about five years, which is intended to support stronger pricing power and structurally higher net margins."

Q2’s 17.8% EBITA margin, alongside Electrify at about 20.7%, shows progress toward that 20% group target. Proprietary products still sit near 80% of sales and medtech and electrification deals like bf1systems and I Holland are integrating into higher margin divisions, which supports the margin ambition but does not yet close the gap.

Lagercrantz bear case: acquisition and construction risks tested

The key worry has been whether aggressive deal making and weak construction exposure would drag on earnings quality.

"Construction related demand remains weak across several Lagercrantz Group units and has already pressured the Control division's EBITA margin to about 14% with restructuring costs and underperforming construction exposed businesses."

Control’s EBITA is slightly down despite 29% revenue growth, as restructuring charges continue to bite, so that pressure is visible. At the same time, group EBITA rises 21% to SEK 530m and TecSec and Niche Products show healthy profit growth. That mix suggests the construction drag is real but still contained at group level while cost actions play through.

Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there.

Hunt Quiet Disconnects In Earnings

Lagercrantz Group highlights how a steady earnings record can diverge from its share price. The real opportunity is searching for stocks that may be undervalued before investors respond to the gap.

• Company 1 - 24% below our estimate - uses flexible petrochemical output and expanding fuel retail to shift how refining earnings respond to the energy transition.
• Company 2 - 27% below our estimate - leans on compact high turnover stores and online ordering to capture more profit from each additional unit of customer demand.
• Company 3 - 47% below our estimate - supplies power cables and systems grid operators need when reinforcing networks for data centers, renewable projects and rising electrification loads.

Three companies from the same screener. Open the full list of 192 companies trading below our fair value estimates →

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