Swedish Exchange's Top 3 Value Picks For September 2024

In This Article:

As European inflation nears the central bank’s target, the Swedish stock market has shown resilience amid broader economic fluctuations. With value stocks outperforming growth shares by a significant margin recently, investors are increasingly looking for undervalued opportunities. In this context, identifying undervalued stocks can be particularly rewarding, as these investments often provide a solid foundation for growth when market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Sleep Cycle (OM:SLEEP)

SEK41.80

SEK80.12

47.8%

QleanAir (OM:QAIR)

SEK26.20

SEK51.12

48.7%

Concentric (OM:COIC)

SEK227.00

SEK409.68

44.6%

Paradox Interactive (OM:PDX)

SEK143.80

SEK258.31

44.3%

Lindab International (OM:LIAB)

SEK264.00

SEK523.59

49.6%

Dometic Group (OM:DOM)

SEK68.15

SEK131.06

48%

Serstech (OM:SERT)

SEK1.34

SEK2.64

49.2%

Svedbergs Group (OM:SVED BTA B)

SEK36.30

SEK65.51

44.6%

Candles Scandinavia (OM:CANDLE B)

SEK19.50

SEK37.55

48.1%

MilDef Group (OM:MILDEF)

SEK82.00

SEK161.49

49.2%

Click here to see the full list of 41 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

HMS Networks

Overview: HMS Networks AB (publ) provides products that enable industrial equipment to communicate and share information globally, with a market cap of SEK21.50 billion.

Operations: HMS Networks generates revenue primarily from the Wireless Communications Equipment segment, which amounts to SEK3.01 billion.

Estimated Discount To Fair Value: 10.7%

HMS Networks is trading at SEK 428.4, which is 10.7% below its estimated fair value of SEK 479.67, indicating it may be undervalued based on cash flows. Despite high debt levels and recent shareholder dilution, the company’s revenue and earnings are forecast to grow significantly faster than the Swedish market at rates of 16% and 29.6% per year respectively. However, profit margins have declined from 20.1% to 14%, reflecting some financial challenges.

OM:HMS Discounted Cash Flow as at Sep 2024
OM:HMS Discounted Cash Flow as at Sep 2024

Humble Group

Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally, with a market cap of SEK5.46 billion.

Operations: The company's revenue segments include Future Snacking (SEK950 million), Sustainable Care (SEK2.30 billion), Quality Nutrition (SEK1.53 billion), and Nordic Distribution (SEK2.67 billion).