Fortnox And 2 Other Swedish Stocks That Might Be Undervalued

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The Swedish stock market has experienced mixed performance recently, with some sectors showing resilience despite broader economic uncertainties. Amidst this volatility, investors are increasingly on the lookout for stocks that may be undervalued and offer potential for growth. Identifying such stocks often involves assessing their financial health, growth prospects, and market position relative to current economic conditions. In this article, we will explore Fortnox and two other Swedish stocks that might be undervalued in today's market.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Sleep Cycle (OM:SLEEP)

SEK40.70

SEK80.27

49.3%

QleanAir (OM:QAIR)

SEK26.80

SEK51.34

47.8%

Scandi Standard (OM:SCST)

SEK82.10

SEK161.97

49.3%

Paradox Interactive (OM:PDX)

SEK139.20

SEK261.67

46.8%

Dometic Group (OM:DOM)

SEK68.40

SEK132.98

48.6%

Litium (OM:LITI)

SEK8.56

SEK16.50

48.1%

Flexion Mobile (OM:FLEXM)

SEK9.30

SEK17.89

48%

BE Group (OM:BEGR)

SEK53.50

SEK106.15

49.6%

Humble Group (OM:HUMBLE)

SEK9.445

SEK18.66

49.4%

Tourn International (OM:TOURN)

SEK8.54

SEK16.48

48.2%

Click here to see the full list of 43 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Fortnox

Overview: Fortnox AB (publ) offers financial and administrative software solutions for small and medium-sized businesses, accounting firms, and organizations, with a market cap of SEK38.94 billion.

Operations: Revenue segments include Businesses (SEK378 million), Marketplaces (SEK160 million), Core Products (SEK734 million), Accounting Firms (SEK352 million), and Financial Services (SEK249 million).

Estimated Discount To Fair Value: 25.4%

Fortnox (SEK63.84) is trading 25.4% below its estimated fair value of SEK85.62, indicating it may be undervalued based on cash flows. The company reported strong financials with Q2 sales at SEK515 million and net income at SEK164 million, both up significantly from last year. Earnings are forecast to grow 22.63% annually, outpacing the Swedish market's 15.7%, and revenue growth is projected at 19.8% per year, highlighting robust future prospects.

OM:FNOX Discounted Cash Flow as at Aug 2024
OM:FNOX Discounted Cash Flow as at Aug 2024

Nolato

Overview: Nolato AB (publ) develops, manufactures, and sells plastic, silicone, and thermoplastic elastomer products for various sectors including medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene, and other industries across Sweden and internationally with a market cap of SEK14.65 billion.