Concentric And 2 Other Stocks That May Be Trading Below Their Estimated Worth On The Swedish Exchange
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As the European markets experience a cautious optimism with the pan-European STOXX Europe 600 Index edging higher, investors are keenly observing opportunities amid shifting economic policies and forecasts. In Sweden, this environment presents a potential for identifying stocks that may be undervalued, offering intriguing prospects for those looking to capitalize on discrepancies between market price and estimated worth. Identifying such stocks often involves assessing fundamental factors like earnings potential and market position, especially in light of recent economic developments that could influence valuations.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Truecaller (OM:TRUE B) | SEK45.44 | SEK88.97 | 48.9% |
| Concentric (OM:COIC) | SEK217.00 | SEK404.87 | 46.4% |
| Biotage (OM:BIOT) | SEK183.40 | SEK364.80 | 49.7% |
| Lindab International (OM:LIAB) | SEK276.60 | SEK527.57 | 47.6% |
| Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK86.76 | SEK168.39 | 48.5% |
| Wall to Wall Group (OM:WTW A) | SEK55.40 | SEK105.54 | 47.5% |
| Securitas (OM:SECU B) | SEK129.95 | SEK258.69 | 49.8% |
| Nexam Chemical Holding (OM:NEXAM) | SEK4.00 | SEK7.91 | 49.4% |
| MilDef Group (OM:MILDEF) | SEK92.40 | SEK181.85 | 49.2% |
| BHG Group (OM:BHG) | SEK14.14 | SEK26.55 | 46.7% |
Let's explore several standout options from the results in the screener.
Concentric
Overview: Concentric AB (publ) designs, develops, manufactures, and distributes hydraulic and engine solutions in Sweden and internationally, with a market cap of SEK8.06 billion.
Operations: The company's revenue is primarily generated from its Engines segment, contributing SEK2.71 billion, and its Hydraulics segment, adding SEK1.25 billion.
Estimated Discount To Fair Value: 46.4%
Concentric is trading at SEK 217, significantly below its estimated fair value of SEK 404.87, indicating potential undervaluation based on cash flows. Despite a volatile share price and declining profit margins, earnings are forecast to grow annually by 24.4%, surpassing the Swedish market average. Recent M&A activity with A.P. Møller Holding A/S proposing a SEK 8.59 billion acquisition may influence future valuations and strategic direction amidst leadership changes in the Hydraulics division.
Telefonaktiebolaget LM Ericsson
Overview: Telefonaktiebolaget LM Ericsson (publ) offers mobile connectivity solutions for telecom operators and enterprise customers across multiple regions, including North America, Europe, and Asia, with a market cap of approximately SEK289.21 billion.