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As global markets experience shifts in sentiment driven by central bank policy changes, the Swedish market has been no exception, with the Riksbank recently reducing borrowing costs to support economic activity. Amid these evolving conditions, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential growth opportunities. In this article, we explore three Swedish stocks currently trading up to 50% below their intrinsic value estimates, offering compelling prospects in today's market environment.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Sleep Cycle (OM:SLEEP) | SEK41.50 | SEK80.17 | 48.2% |
QleanAir (OM:QAIR) | SEK27.40 | SEK51.83 | 47.1% |
Nilörngruppen (OM:NIL B) | SEK68.00 | SEK135.98 | 50% |
Paradox Interactive (OM:PDX) | SEK138.00 | SEK258.30 | 46.6% |
Lindab International (OM:LIAB) | SEK262.00 | SEK523.56 | 50% |
Dometic Group (OM:DOM) | SEK69.25 | SEK131.54 | 47.4% |
Cavotec (OM:CCC) | SEK20.80 | SEK41.56 | 49.9% |
Mentice (OM:MNTC) | SEK25.90 | SEK50.93 | 49.1% |
Tourn International (OM:TOURN) | SEK8.96 | SEK16.47 | 45.6% |
Svedbergs Group (OM:SVED BTA B) | SEK36.30 | SEK65.51 | 44.6% |
Let's review some notable picks from our screened stocks.
Fortnox
Overview: Fortnox AB (publ) offers financial and administrative software solutions for small and medium-sized businesses, accounting firms, and organizations, with a market cap of SEK36.64 billion.
Operations: The company's revenue segments include Businesses (SEK378 million), Marketplaces (SEK160 million), Core Products (SEK734 million), Accounting Firms (SEK352 million), and Financial Services (SEK249 million).
Estimated Discount To Fair Value: 23.4%
Fortnox is trading at SEK60.06, significantly below its estimated fair value of SEK78.45, indicating it may be undervalued based on cash flows. The company's earnings are forecast to grow 22.6% annually over the next three years, outpacing the Swedish market's growth rate of 16%. Recent earnings reports show strong performance with Q2 revenue at SEK521 million and net income at SEK164 million, reflecting substantial year-over-year growth.
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The growth report we've compiled suggests that Fortnox's future prospects could be on the up.
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Click here to discover the nuances of Fortnox with our detailed financial health report.
Lindab International
Overview: Lindab International AB (publ) manufactures and sells ventilation system products and solutions in Europe, with a market cap of SEK20.14 billion.
Operations: Lindab International AB (publ) generates revenue through two primary segments: Ventilation Systems, which accounts for SEK9.95 billion, and Profile Systems, contributing SEK3.28 billion.