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As global markets respond to anticipated interest rate cuts and European indices show positive momentum, Sweden's Riksbank has also reduced borrowing costs, signaling a favorable environment for small-cap stocks. In this context, identifying undiscovered gems in Sweden can be particularly rewarding for investors seeking opportunities in a shifting economic landscape. A good stock in these conditions often exhibits strong fundamentals, growth potential, and resilience to market fluctuations—qualities that align well with the current trend of easing monetary policies and improving investor sentiment.
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 | 15.90% | 31.36% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Byggmästare Anders J Ahlström Holding | NA | 33.57% | -9.00% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
engcon
Simply Wall St Value Rating: ★★★★★☆
Overview: engcon AB (publ) designs, produces, and sells excavator tools globally, with a market cap of SEK17.49 billion.
Operations: The company generates revenue primarily from the sale of construction machinery and equipment, totaling SEK1.54 billion. Its net profit margin stands at 14.3%.
Engcon reported SEK 450 million in Q2 sales, down from SEK 508 million a year ago, with net income at SEK 55 million compared to SEK 83 million. The company’s profit margin dropped to 9.9% from last year's 18%. Despite negative earnings growth of -60.6%, their EBIT covers interest payments by over 20 times, and they maintain a satisfactory net debt to equity ratio of 8.5%. Future earnings are forecasted to grow nearly 44% annually.
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Click to explore a detailed breakdown of our findings in engcon's health report.
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Understand engcon's track record by examining our Past report.
Hoist Finance
Simply Wall St Value Rating: ★★★★☆☆
Overview: Hoist Finance AB (publ) is a credit market company that specializes in loan acquisition and management operations across Europe, with a market cap of approximately SEK6.61 billion.
Operations: Revenue streams for Hoist Finance AB (publ) include SEK 2.86 billion from unsecured loans and SEK 821 million from secured loans, with additional contributions of SEK 255 million from group items.