Three Undiscovered Gems in Sweden with Promising Potential

In This Article:

As European inflation nears the central bank's target and key indices like the STOXX Europe 600 Index hit record highs, the Swedish market presents a fertile ground for discovering promising small-cap stocks. In this environment, identifying companies with strong fundamentals and growth potential becomes crucial for investors seeking to capitalize on emerging opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 55 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

engcon

Simply Wall St Value Rating: ★★★★★☆

Overview: engcon AB (publ) specializes in designing, producing, and selling excavator tools globally, with a market cap of SEK18.00 billion.

Operations: The company generates revenue primarily from the construction machinery and equipment segment, amounting to SEK1.54 billion. Its net profit margin stands at 10.5%.

engcon B, a notable player in the machinery sector, has faced challenging times with a 60.6% earnings drop over the past year and net profit margins falling from 18% to 9.9%. Despite this, their EBIT covers interest payments by 20.4x, showcasing financial stability. Recent announcements revealed Q2 sales of SEK 450 million and net income of SEK 55 million. The company also created a new COO role to bolster future growth prospects.

OM:ENGCON B Debt to Equity as at Sep 2024
OM:ENGCON B Debt to Equity as at Sep 2024

ITAB Shop Concept

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in designing and providing customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores with a market cap of SEK5.38 billion.

Operations: ITAB Shop Concept AB (publ) generates revenue through the sale of customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores. The company's market cap stands at SEK5.38 billion.

ITAB Shop Concept has shown impressive growth, with earnings increasing by 56.7% over the past year, outpacing the Commercial Services industry. Trading at 22.6% below its estimated fair value, ITAB offers good relative value compared to peers. The company’s debt to equity ratio has significantly improved from 137.6% to 20% in five years, and its interest payments are well covered by EBIT (21x coverage). Recent contracts like a EUR 22 million deal in the UK further bolster its prospects.