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As global markets continue to navigate a complex economic landscape, Sweden's stock market has shown resilience amid broader European gains. With hopes for interest rate cuts and steady economic growth, the Swedish market presents intriguing opportunities for investors. Identifying undervalued stocks in such an environment requires a keen eye on fundamentals and market sentiment. Here are three Swedish stocks that might be flying under the radar yet hold potential for value-conscious investors.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sleep Cycle (OM:SLEEP) | SEK41.00 | SEK80.16 | 48.9% |
| QleanAir (OM:QAIR) | SEK27.40 | SEK52.00 | 47.3% |
| Nilörngruppen (OM:NIL B) | SEK69.20 | SEK136.83 | 49.4% |
| Stille (OM:STIL) | SEK225.00 | SEK442.79 | 49.2% |
| Litium (OM:LITI) | SEK8.32 | SEK16.48 | 49.5% |
| Dometic Group (OM:DOM) | SEK68.90 | SEK132.29 | 47.9% |
| Flexion Mobile (OM:FLEXM) | SEK9.34 | SEK17.70 | 47.2% |
| Tourn International (OM:TOURN) | SEK8.50 | SEK16.47 | 48.4% |
| Humble Group (OM:HUMBLE) | SEK9.735 | SEK18.70 | 47.9% |
| Nordisk Bergteknik (OM:NORB B) | SEK18.26 | SEK36.40 | 49.8% |
Below we spotlight a couple of our favorites from our exclusive screener.
Absolent Air Care Group
Overview: Absolent Air Care Group AB (publ) designs, develops, sells, installs, and maintains air filtration units with a market cap of SEK 3.74 billion.
Operations: The company's revenue segments include Industrial at SEK 1140.20 million and Commercial Kitchen at SEK 281.66 million.
Estimated Discount To Fair Value: 37%
Absolent Air Care Group appears undervalued based on cash flows, trading at SEK 330, significantly below its estimated fair value of SEK 524.01. Despite recent executive changes and a slight dip in Q2 net income to SEK 40.35 million from SEK 45.66 million last year, the company shows strong fundamentals with forecasted annual earnings growth of 18.84% and revenue growth outpacing the Swedish market at 10% per year.
Catella
Overview: Catella AB (publ) is a real estate investment firm with a market cap of SEK2.62 billion.
Operations: Catella's revenue segments include Corporate Finance at SEK433 million, Investment Management at SEK1.13 billion, and Principal Investments at SEK723 million.
Estimated Discount To Fair Value: 15.2%
Catella AB, trading at SEK 29.65, is undervalued compared to its estimated fair value of SEK 34.97. Despite a recent dividend decrease and board changes, the company’s earnings are forecasted to grow significantly at 52.8% per year, outpacing the Swedish market's growth rate of 15.9%. However, profit margins have declined from last year's figures and dividends are not well covered by earnings or free cash flows.