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As global markets experience volatility and economic indicators send mixed signals, the Swedish market remains a fertile ground for discovering promising small-cap stocks. In this article, we highlight three undiscovered gems in Sweden that could add value to your portfolio, especially in times when identifying robust growth opportunities is crucial.
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% | ★★★★★★ |
| Bahnhof | NA | 9.47% | 15.07% | ★★★★★★ |
| Duni | 29.33% | 10.78% | 22.98% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| Karnell Group | 44.29% | 22.04% | 39.45% | ★★★★★☆ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
AQ Group
Simply Wall St Value Rating: ★★★★★★
Overview: AQ Group AB (publ) manufactures and sells components and systems for industrial customers in Sweden, other European countries, and internationally, with a market cap of SEK12.53 billion.
Operations: AQ Group AB (publ) generates revenue primarily from its Component segment (SEK7.87 billion) and System segment (SEK1.78 billion).
AQ Group, a small Swedish company, has shown impressive financial performance with earnings growth of 19.3% over the past year, outpacing the Electrical industry’s -14.9%. The company's debt-to-equity ratio has significantly improved from 36.3% to 7.3% in five years, and its interest payments are well covered by EBIT at 32.1x coverage. Recent results show net income for Q2 at SEK 180 million compared to SEK 170 million last year, reflecting strong profitability and high-quality earnings.
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Unlock comprehensive insights into our analysis of AQ Group stock in this health report.
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Gain insights into AQ Group's historical performance by reviewing our past performance report.
OEM International
Simply Wall St Value Rating: ★★★★★★
Overview: OEM International AB (publ), along with its subsidiaries, supplies products and systems for industrial applications, with a market cap of SEK16.30 billion.
Operations: Revenue for OEM International AB (publ) is primarily generated from Sweden (SEK 3.28 billion), Denmark, Norway, The British Isles and East Central Europe (SEK 1.20 billion), and Finland, The Baltic States and China (SEK 1.05 billion).
OEM International, a notable player in the trade distributors sector, has shown mixed performance recently. Over the past five years, its debt to equity ratio impressively dropped from 29.7% to 2%, and it trades at 61.6% below estimated fair value. However, recent earnings growth was negative (-5.9%) compared to the industry average of 1.3%. For Q2 2024, sales reached SEK 1.33 billion while net income stood at SEK 139 million, down from SEK 157 million last year.