Hoist Finance came into today on the back foot, with the stock down about 14% over the past month as investors questioned how long its earnings run could last. Q3 2026 just answered that with a punchy headline number. Profit before tax reached SEK 503m and return on equity landed at 21.2%, both supported by record collections of SEK 3.0b. The share price has not matched that strength so far. That leaves you weighing a cool market reaction against a quarter that kept profitability and cash generation firmly on the front line.
Like the earnings power at Hoist Finance but uneasy about a share price that is lagging the profit story? Compare this setup with a curated group of resilient, cash generative businesses screened for balance sheet strength in our list of solid balance sheet and fundamentals stocks (204 results).
Q3 2026 Earnings Summary
- Total Revenue (Q3 2026 vs. Q3 2025): SEK 1,402m vs. SEK 1,015m (up about 38%)
- Net Income excl. extra items (Q3 2026 vs. Q3 2025): SEK 384m vs. SEK 262m (up about 47%)
- Basic EPS (Q3 2026 vs. Q3 2025): SEK 4.05 vs. SEK 2.997 (up about 35%)
- Cost to income ratio (Q3 2026 vs. Q3 2025): 63.8% vs. 66.8% (efficiency improved)
Earnings give you one snapshot, but investors who care about what they are paying for OM:HOFI usually focus on the cash coming in and out of the business. Hoist Finance's latest cash generation tells its own story about valuation, and on those flows alone the stock could be a notable 26% undervalued.
Hoist Finance: Bullish Funding And Deployment Claims On Trial
Supporters argue Hoist Finance can keep turning its cheap deposits and NPL pipeline into high quality cash returns.
"The main factor that has to go right is that Hoist Finance continues to deploy its low cost deposit funding and growing NPL portfolio at accretive internal rates of return, while maintaining disciplined underwriting and operating leverage despite competitive and funding pressures."
Q3 points in that direction. Group funding cost sits at 3.21% with funding cost relative to the NPL book below 4%. Profit before tax of SEK 503m, ROE of 21.2% and a cost to income ratio of 63.8% show operating leverage still working, while SEK 1.6b of Q3 investments are described as accretive.
Hoist Finance: Bearish Concerns Around Competition And Discipline
The bear side questions whether this NPL engine can keep its edge as rivals crowd in.
"Management has acknowledged that competitive conditions are changing as industrial buyers return and additional Specialized Debt Restructurers appear. If this intensifies further it could squeeze achievable internal rates of return on new NPL portfolios and weigh on future revenue growth and earnings per share."
Competition is clearly rising in the Nordics, and management is already walking away from some deals. Even so, Q3 delivered SEK 1.6b of investments, close to SEK 9.7b year to date plus about SEK 1b post close, with management still describing returns as accretive and Azzurro collections aligned with forecasts.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.
Hunt For Mispriced Cash Engines
Hoist Finance reported a strong quarter while its share price stayed muted. The real opportunity could be stocks that appear mispriced before sentiment adjusts.
- Company 1 - 36% below our estimate - builds an advisory franchise focused on capital markets and private mandates as senior hires convert a growing deal pipeline.
- Company 2 - 39% below our estimate - shifts its portfolio toward recurring consumables and sterile workflow products as extraordinary quality costs ease and productivity programs influence margins.
- Company 3 - 32% below our estimate - targets long duration defence programmes that embed maritime sensors and autonomous system content deeper into allied infrastructure projects.
That is three of the list. See every one of the 195 undervalued companies on it →
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