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Operations: The Medical Solutions segment generates SEK 5.34 billion in revenue.

Estimated Discount To Fair Value: 35%

Nolato has demonstrated a consistent increase in earnings and sales, reflecting a promising growth trajectory that exceeds the broader Swedish market's average. Despite an unstable dividend history, the company is trading at a significant 35% discount to its estimated fair value of SEK 88.91, suggesting potential undervaluation based on cash flows. However, its expected return on equity is projected to be modest in three years at 14.6%, which may temper investor expectations regarding long-term profitability.

• The analysis detailed in our Nolato growth report hints at robust future financial performance.

• Take a closer look at Nolato's balance sheet health here in our report.

Sweco

Overview: Sweco AB (publ) offers architecture and engineering consultancy services globally, with a market capitalization of approximately SEK 61.05 billion.

Operations: Sweco's revenue is generated from various regional segments, with Sweden contributing SEK 8.74 billion, followed by Belgium at SEK 3.97 billion, Norway at SEK 3.50 billion, Finland at SEK 3.67 billion, Denmark at SEK 3.24 billion, the Netherlands at SEK 3.00 billion, and Germany & Central Europe providing SEK 2.71 billion.

Estimated Discount To Fair Value: 17.4%

Sweco AB, with its shares priced at SEK 169.8—17.4% below the calculated fair value of SEK 205.46—appears undervalued based on discounted cash flows. The company's earnings have grown by 1.2% over the past year and are expected to increase by 17.31% annually, outpacing the Swedish market's growth rate of 15.5%. Despite this positive trajectory, Sweco has a history of unstable dividend payments, which could concern income-focused investors.

• The growth report we've compiled suggests that Sweco's future prospects could be on the up.

• Click to explore a detailed breakdown of our findings in Sweco's balance sheet health report.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OM:FNOX OM:NOLA B and OM:SWEC B.

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