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Green Landscaping Group (OM:GREEN) Stock Faces Margin Pressure Despite Q2 EPS Beat Challenging Bullish Views
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Green Landscaping Group (OM:GREEN) has put up a solid headline for Q2 2026, with revenue at about SEK1.9b and basic EPS of SEK1.29, alongside net income excluding extra items of SEK73m. The company has seen revenue move from SEK1.6b and basic EPS of SEK1.15 in Q2 2025 to SEK1.9b and SEK1.29 in Q2 2026, while trailing twelve month EPS sits at roughly SEK2.39 on revenue of about SEK6.6b. This gives investors a basis to weigh forecast earnings growth against a net profit margin that currently sits around 2%.

See our full analysis for Green Landscaping Group.

With the latest numbers on the table, the next step is to see how Green Landscaping Group’s reported growth and tight margins line up with the widely followed bullish and cautious narratives around the stock.

See what the community is saying about Green Landscaping Group

OM:GREEN Revenue & Expenses Breakdown as at Jul 2026
OM:GREEN Revenue & Expenses Breakdown as at Jul 2026

TTM earnings at SEK134m versus SEK73m this quarter

  • Over the last twelve months, Green Landscaping Group generated SEK134m in net income on SEK6.6b of revenue, compared with SEK73m in net income on SEK1.9b of revenue in Q2 2026. This keeps the trailing net margin around 2%, while this quarter sits in the same range.
  • Supporters of the bullish view point to forecast earnings growth of about 17.3% per year, and the current 2% trailing net margin versus 2.5% a year earlier creates a tension between the expected margin improvement and the fact that profitability on recent reported numbers is still relatively tight.
    • Bulls expect profit margins to improve from around 2.0% to higher levels over time. However, the trailing 12 month margin of 2% on SEK6.6b of revenue shows that any future margin lift is not yet visible in the historical data cited here.
    • This puts extra focus on whether upcoming periods can move net income beyond the current SEK134m trailing level in a way that actually matches the bullish earnings trajectory being discussed.

Some investors want to see how this earnings path lines up with the optimistic long term story that has been built around Green Landscaping Group, especially given the narrow margins on recent reported numbers. Bulls argue that the recent SEK73m Q2 net income is a step along the way to much higher profit levels, but the historical 2% margin keeps the debate very real on how quickly that shift can happen. 🐂 Green Landscaping Group Bull Case

P/E of 11x with DCF fair value at SEK140.86

  • Based on the current share price of SEK24.85 and trailing EPS of roughly SEK2.39, Green Landscaping Group is trading at a P/E of about 11x. The provided DCF fair value is SEK140.86 and the referenced analyst price target to compare against is SEK35.00.
  • Critics highlight that even with an apparently low 11x P/E and a share price well below the DCF fair value of SEK140.86, the key concern is weak interest coverage because earnings are not described as comfortably covering interest payments.
    • This bearish angle argues that the valuation gap versus both the DCF fair value and the SEK35.00 price target needs to be weighed against the financial strain from interest obligations, rather than treated as a simple pricing anomaly.
    • The same analysis flags share price volatility over the last three months, which for bears reinforces the idea that the market is already reacting to the leverage and interest coverage risk rather than ignoring it.

For cautious investors, the combination of an 11x P/E and a wide gap to the SEK140.86 DCF fair value is less about a bargain and more about asking whether earnings strength is solid enough to handle the interest bill if conditions stay similar. Skeptics warn that until interest coverage looks healthier, valuation alone may not offset the balance sheet pressure that is already being flagged. 🐻 Green Landscaping Group Bear Case

Forecast 3.6% revenue growth versus 17.3% earnings growth

  • Revenue is forecast to grow about 3.6% per year while earnings are forecast to rise around 17.3% per year, compared with the trailing 12 month net margin of 2% that is slightly lower than the 2.5% margin cited for the prior year.
  • Consensus narrative suggests margin expansion and profitability gains from actions like discontinuing weaker contracts and focusing on higher value work. These forecasts for faster earnings growth than revenue show how much of that story depends on better margins rather than just more sales.
    • The 2% trailing net margin on SEK6.6b of revenue contrasts with the view that margins can move materially higher, so readers need to weigh whether operational efforts described in the narratives can realistically shift the margin profile from what is currently reported.
    • At the same time, the modest 3.6% revenue growth forecast versus a higher Swedish market growth forecast of 6.5% leaves more of the heavy lifting to earnings efficiency rather than expecting the top line to lead the improvement.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Green Landscaping Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mixed signals around Green Landscaping Group have you thinking, take a moment to review the figures yourself and decide where you stand, then round out your view by checking the 3 key rewards and 2 important warning signs.

See What Else Is Out There

Green Landscaping Group is working with a tight 2% net margin, modest revenue growth forecasts and flagged balance sheet pressure from interest coverage concerns.

If you want stocks where thin margins and debt worries are less of a concern, check out the solid balance sheet and fundamentals stocks screener (416 results) to focus on companies with stronger financial footing.

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.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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