Swedish Exchange Highlights Husqvarna And 2 Other Stocks Estimated Below Fair Value

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The Swedish stock market has shown resilience amid global economic shifts, with the pan-European STOXX Europe 600 Index ending the week 1.85% higher following an interest rate cut from the European Central Bank. As investors seek opportunities in this evolving landscape, identifying undervalued stocks becomes crucial for maximizing potential returns. In this context, a good stock is one that demonstrates strong fundamentals and growth potential but is currently trading below its estimated fair value. This article highlights Husqvarna and two other Swedish stocks that fit this criteria, offering insights into their valuation and prospects in today's market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Sleep Cycle (OM:SLEEP)

SEK40.60

SEK79.91

49.2%

Husqvarna (OM:HUSQ B)

SEK66.34

SEK130.49

49.2%

QleanAir (OM:QAIR)

SEK27.90

SEK51.85

46.2%

Lindab International (OM:LIAB)

SEK267.40

SEK523.24

48.9%

Litium (OM:LITI)

SEK8.24

SEK16.42

49.8%

Nolato (OM:NOLA B)

SEK54.80

SEK99.04

44.7%

Tourn International (OM:TOURN)

SEK8.30

SEK16.50

49.7%

Mentice (OM:MNTC)

SEK27.40

SEK50.98

46.3%

MilDef Group (OM:MILDEF)

SEK86.60

SEK161.49

46.4%

BHG Group (OM:BHG)

SEK14.98

SEK27.09

44.7%

Click here to see the full list of 39 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Husqvarna

Overview: Husqvarna AB (publ) produces and sells outdoor power products, watering products, and lawn care power equipment, with a market cap of SEK38.02 billion.

Operations: The company's revenue segments are Gardena (SEK12.59 billion), Group Common (SEK157 million), Husqvarna Construction (SEK8.14 billion), and Husqvarna Forest & Garden (SEK28.37 billion).

Estimated Discount To Fair Value: 49.2%

Husqvarna is trading at SEK 66.34, significantly below its estimated fair value of SEK 130.49, indicating it may be undervalued based on cash flows. Despite challenging market conditions and expected declines in organic sales for Q3 2024, the company's earnings are forecast to grow by 26% annually over the next three years, outpacing the Swedish market's growth rate. However, Husqvarna faces high debt levels and its dividend coverage remains weak.

OM:HUSQ B Discounted Cash Flow as at Sep 2024
OM:HUSQ B Discounted Cash Flow as at Sep 2024

Lindab International

Overview: Lindab International AB (publ) manufactures and sells ventilation system products and solutions in Europe, with a market cap of SEK20.55 billion.