3 Undiscovered Gems In Sweden To Enhance Your Portfolio

In This Article:

As global markets react to recent economic developments, including the European Central Bank's rate cut and signs of weakening growth in the eurozone, investors are increasingly looking for opportunities outside traditional sectors. In this environment, small-cap stocks in Sweden offer unique potential for portfolio enhancement due to their resilience and growth prospects.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Click here to see the full list of 56 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Ratos

Simply Wall St Value Rating: ★★★★☆☆

Overview: Ratos AB (publ) is a private equity firm that focuses on buyouts, turnarounds, add-on acquisitions, and middle market transactions with a market cap of approximately SEK11.39 billion.

Operations: Ratos AB (publ) generates revenue primarily from three segments: Consumer (SEK 5.65 billion), Industry (SEK 10.47 billion), and Construction & Services (SEK 16.77 billion). The total revenue is SEK 32.89 billion after accounting for a segment adjustment of -SEK 20 million.

Ratos, a small-cap Swedish investment company, has demonstrated solid performance with earnings growing 34.1% annually over the past five years and a net profit margin of 6.7%. The company's net debt to equity ratio has improved from 56.6% to 33% in five years, showing prudent financial management. Recent results include SEK953M one-off gain impacting last year's financials and second-quarter sales of SEK9.11B compared to SEK10B previously, reflecting strategic shifts amidst new contracts worth SEK1.1B secured by its subsidiary SSEA Group in key regions like Stockholm and Gothenburg.

OM:RATO B Earnings and Revenue Growth as at Sep 2024
OM:RATO B Earnings and Revenue Growth as at Sep 2024

Rusta

Simply Wall St Value Rating: ★★★★☆☆

Overview: Rusta AB (publ) retails home and leisure products in Sweden, Norway, Finland, and Germany with a market cap of SEK11.42 billion.

Operations: Rusta AB (publ) generates revenue primarily from retailing home and leisure products across Sweden, Norway, Finland, and Germany. The company's market cap stands at SEK11.42 billion.