Freelance.com (ENXTPA:ALFRE) Profit Margin Rise Challenges Bearish Growth Narratives

Freelance.com (ENXTPA:ALFRE) posted a net profit margin of 2.2%, up from 1.6% a year ago. Earnings grew a substantial 53.2% over the past year, outpacing its five-year annual growth rate of 20.2%. That said, the outlook for earnings is cautious, with annual declines of 0.3% forecast over the next three years. Revenue growth is expected to slow to 3.2% per year, trailing the French market’s projected 5.5%. Shares are currently trading at €2.22, well below the estimated fair value of €9.02. ALFRE’s price-to-earnings ratio stands at just 5.3x, significantly undercutting both peer and industry averages.

See our full analysis for Freelance.com.

Next, we will see how these numbers compare to the most widely discussed narratives and expectations around Freelance.com, and whether the latest results are likely to shift the conversation.

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• Net profit margin reached 2.2%, up from 1.6% last year. However, forward projections indicate annual earnings declines of 0.3% over the next three years.

• While bulls typically highlight the sharp 53.2% earnings growth as evidence of strong execution,

  • the fact that future net profit margins are not expected to expand and earnings are now forecast to decrease creates a tension in the bullish thesis around durable growth.

  • This surge in profitability challenges cautious views for now, but guidance suggests it may be short-lived as sector competition and growth deceleration take hold.

• ALFRE’s revenue is projected to rise 3.2% annually, underperforming the French market’s estimated 5.5% annual gain.

• Bulls may see sector momentum as a growth opportunity,

  • yet the company’s slower top-line expansion signals difficulty keeping pace with broader market tailwinds, making it harder for the bullish camp to justify sustained optimism based on industry dynamics alone.

  • With competition in the sector set to intensify, this lower growth rate leaves ALFRE less room to outgrow risks highlighted by market observers.

• ALFRE trades at €2.22, far below its discounted cash flow (DCF) fair value of €9.02. Its price-to-earnings (P/E) ratio of 5.3x is well under the professional services industry average of 20.9x.

• This large valuation gap suggests meaningful upside compared to sector benchmarks,

  • but it also signals that investors remain cautious around modest growth expectations, reflected in both the DCF discount and steeper P/E discount relative to peers.

  • Whereas sector multiples may price in robust earnings momentum, ALFRE’s valuation reflects a more guarded stance on future growth and margin durability.