Hoist Finance (OM:HOFI) reported a net profit margin of 20.2%, slightly ahead of last year’s 20%, and posted EPS growth of 13.2% over the past year. Over the past five years, the company has averaged an impressive 61.1% annual earnings growth rate, although the most recent year came in a bit lower. With earnings forecast to climb 15.01% annually and revenue projected to rise 11.8% per year, both of which are well above the Swedish market’s outlook of 3.9%, investors will be watching for these performance trends to continue. The stock currently trades at a P/E of 9.6x, putting it below industry and peer averages. Risks around dividend sustainability and financial position are noted but do not outweigh the company’s attraction as a value and growth story.
See our full analysis for Hoist Finance.
The next section puts these results head-to-head with the most widely followed narratives for Hoist Finance, weighing where the facts and stories align or where some assumptions may need rethinking.
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Analysts project an increase in profit margin from the current 20.2% to 25.0% over the next three years, setting a higher earnings quality bar for Hoist Finance.
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According to the analysts’ consensus view, several levers are driving this anticipated uplift in profitability:
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Efficiency gains and new deposit platforms are expected to lower funding costs, supporting wider margins even if portfolio supply remains patchy.
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However, climbing funding costs—already up from 3.4% to 4.4% of portfolio value—may pressure these targets if interest rates rise or if new cost controls stall.
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For a balanced reading of how bulls and bears are debating Hoist’s pathway to higher margins, see the full Consensus Narrative. 📊 Read the full Hoist Finance Consensus Narrative.
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Hoist is aiming to expand its acquired loan portfolio to SEK 36 billion by 2026, with this figure anchored by a robust pipeline and recent demographic trends boosting non-performing loan volumes across Europe.
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Analysts’ consensus view sees greater supply of non-performing loans (NPLs) and regulatory harmonisation opening new opportunities:
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As EU-wide rules ease access to unsecured portfolios, recurring revenue and scale should strengthen Hoist’s competitive position over the medium term.
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Nonetheless, temporary regulatory constraints and limited supply of high-yield NPLs in key markets may slow progress, making portfolio growth partly reliant on market timing and successful geographic expansion.
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