3 Undervalued Swedish Stocks With Intrinsic Discounts Ranging From 39.8% To 49.1%

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Amidst a landscape of shifting global market dynamics, Sweden's stock market presents intriguing opportunities for investors seeking value. Recent trends indicate a pivot towards smaller-cap and value stocks internationally, setting the stage to spotlight undervalued Swedish equities that may offer significant intrinsic discounts.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Gränges (OM:GRNG)

SEK135.70

SEK260.74

48%

Husqvarna (OM:HUSQ B)

SEK74.60

SEK143.06

47.9%

Nordic Waterproofing Holding (OM:NWG)

SEK160.60

SEK313.02

48.7%

Scandi Standard (OM:SCST)

SEK75.90

SEK145.57

47.9%

Volati (OM:VOLO)

SEK120.00

SEK235.69

49.1%

RaySearch Laboratories (OM:RAY B)

SEK139.80

SEK277.78

49.7%

TF Bank (OM:TFBANK)

SEK272.00

SEK518.96

47.6%

Cavotec (OM:CCC)

SEK20.10

SEK37.46

46.3%

Humble Group (OM:HUMBLE)

SEK10.00

SEK18.64

46.3%

Bactiguard Holding (OM:BACTI B)

SEK70.60

SEK132.10

46.6%

Click here to see the full list of 47 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Dometic Group

Overview: Dometic Group AB (publ) specializes in mobile living solutions including food and beverage, climate, power and control, with a market capitalization of approximately SEK 23.00 billion.

Operations: Dometic's revenue is derived from various segments, including Marine (SEK 6.25 billion), Global Ventures (SEK 5.88 billion), and Land Vehicles across APAC (SEK 4.52 billion), EMEA (SEK 8.11 billion), and the Americas (SEK 5.00 billion).

Estimated Discount To Fair Value: 39.8%

Dometic Group, trading at SEK72, is recognized as undervalued based on discounted cash flows, with a valuation gap of nearly 40% below the estimated fair value of SEK119.7. Despite recent earnings declines—Q2 sales dropped to SEK 7.66 billion from SEK 8.33 billion year-over-year—the company is poised for robust earnings growth, projected at an annual rate of 26.76%. However, challenges include a high debt level and an unstable dividend track record, alongside modest expected revenue growth at 2.8% annually.

OM:DOM Discounted Cash Flow as at Jul 2024
OM:DOM Discounted Cash Flow as at Jul 2024

Lindab International

Overview: Lindab International AB (publ) specializes in manufacturing and selling products and solutions for ventilation systems across Europe, with a market capitalization of approximately SEK 19.997 billion.

Operations: The company generates revenue primarily through two segments: Profile Systems, which brought in SEK 3.28 billion, and Ventilation Systems, contributing SEK 9.95 billion.