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As global markets exhibit mixed signals with some regions showing modest gains while others face economic slowdowns, the Swedish stock market offers unique opportunities for investors looking at potentially undervalued stocks. In this context, understanding what constitutes a good investment involves evaluating companies with strong fundamentals that may be overlooked in the current economic climate.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Björn Borg (OM:BORG) | SEK55.60 | SEK102.20 | 45.6% |
Boule Diagnostics (OM:BOUL) | SEK10.80 | SEK21.06 | 48.7% |
Alleima (OM:ALLEI) | SEK70.60 | SEK138.09 | 48.9% |
Nordic Waterproofing Holding (OM:NWG) | SEK161.80 | SEK297.13 | 45.5% |
Net Insight (OM:NETI B) | SEK5.02 | SEK9.84 | 49% |
Nolato (OM:NOLA B) | SEK58.35 | SEK111.73 | 47.8% |
MilDef Group (OM:MILDEF) | SEK68.50 | SEK132.01 | 48.1% |
Humble Group (OM:HUMBLE) | SEK10.11 | SEK19.51 | 48.2% |
Hexatronic Group (OM:HTRO) | SEK49.85 | SEK98.83 | 49.6% |
Gigasun (OM:GIGA) | SEK3.95 | SEK7.58 | 47.9% |
Let's dive into some prime choices out of from the screener
Dometic Group
Overview: Dometic Group AB operates in providing mobile living solutions across various sectors including food and beverage, climate, power and control, with a market capitalization of approximately SEK 22.24 billion.
Operations: Dometic's revenue is segmented into Marine (SEK 6.56 billion), Americas (SEK 5.05 billion), Europe, Middle East and Africa (EMEA) at SEK 8.14 billion, and Asia Pacific (APAC) contributing SEK 4.70 billion, alongside a global segment generating SEK 5.92 billion in sales.
Estimated Discount To Fair Value: 39%
Dometic Group, despite a recent dip in quarterly sales and net income, remains an attractive proposition based on cash flow analysis. Currently trading at SEK 69.6, the stock is assessed to be significantly undervalued with a fair value estimate of SEK 114.05, indicating it is trading at about 39% below its estimated value. While its revenue growth forecast of 2.3% per year modestly outpaces the Swedish market's 1.8%, concerns include a high level of debt and an unstable dividend track record. However, earnings are expected to surge by approximately 21.78% annually, suggesting potential for substantial medium-term appreciation.
Lindab International
Overview: Lindab International AB specializes in manufacturing and selling products and solutions for ventilation systems across Europe, with a market cap of approximately SEK 18.34 billion.