by Bilendi (ENXTPA:ALBLD) posted 14.4% earnings growth last year, surpassing its own five-year average of 10.6% per year. The company’s net profit margin came in at 6.6%, down slightly from 7% last year, while shares trade at €22.3, below analysts’ fair value estimate of €43.5. Investors will note that earnings are expected to accelerate to an annual growth rate of 26.6%, with the shares attractively priced relative to peers. However, the recent margin compression brings some caution to the otherwise positive outlook.
See our full analysis for Bilendi.
Let’s see how these numbers compare to the dominant narratives from the Simply Wall St community and analysts. This is where expectations and reality meet.
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Net profit margin fell from 7% last year to 6.6% this year, a modest setback given its strong track record of annual profit growth averaging 10.6% over five years.
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The prevailing market view emphasizes Bilendi’s stability amid industry competition and digital trends.
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consistency in profit margins, even if compressed, appeals to investors looking for steady progress rather than volatility.
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The lack of negative news or major setbacks keeps confidence high among those seeking exposure to digital transformation.
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Earnings are expected to accelerate to an annual growth rate of 26.6% in the coming years, which will notably exceed expected revenue growth of 12.3% per year, according to the latest company outlook.
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Market commentary focuses on the widening gap between profit and revenue growth figures.
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Robust future earnings expectations may fuel optimism, but some investors will be closely watching whether these efficiency gains are sustainable if margins remain under pressure.
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above-market expectations position Bilendi as a potential outperformer compared to the broader French market, strengthening its appeal amid continued momentum in the digital sector.
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Bilendi trades at a price-to-earnings ratio of 20.3x, which is cheaper than the peer average of 27.4x, but more expensive than the French media sector’s 12.4x, while well below the DCF fair value of €43.50.
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This valuation profile, in the context of the prevailing market view,
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strongly supports the idea that Bilendi offers good value for growth within its peers, while receiving a discount that can help limit downside risk;
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Still, the premium over the broader industry average indicates that investors are paying for sustainable digital growth and consistent results, even in a competitive landscape.
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