Undiscovered Gems In Sweden Featuring Clas Ohlson And 2 Other Small Cap Treasures

In This Article:

As global markets respond to recent economic shifts, the European Central Bank's rate cuts and a generally positive performance in key indices have created an intriguing backdrop for small-cap stocks. Against this dynamic landscape, Sweden offers a fertile ground for discovering undervalued opportunities that could thrive despite broader market volatility. In this article, we explore three Swedish small-cap stocks that stand out for their potential resilience and growth prospects, starting with Clas Ohlson.

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%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

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 59 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Clas Ohlson

Simply Wall St Value Rating: ★★★★★★

Overview: Clas Ohlson AB (publ) is a retail company that sells hardware, electrical, multimedia, home, and leisure products in Sweden, Norway, Finland, and internationally with a market cap of SEK10.62 billion.

Operations: Clas Ohlson generates revenue primarily from its retail segment, amounting to SEK10.66 billion. The company's net profit margin stands at 6.2%.

Clas Ohlson, a Swedish retailer, has shown impressive financial performance recently. Earnings surged 281.8% over the past year, significantly outpacing the Specialty Retail industry’s growth of 21%. The company reported first-quarter sales of SEK 2.62 billion and net income of SEK 145.8 million compared to a net loss last year. Additionally, Clas Ohlson is trading at 65% below its estimated fair value and remains debt-free with high-quality earnings, making it an intriguing investment prospect in Sweden's retail sector.

OM:CLAS B Earnings and Revenue Growth as at Sep 2024
OM:CLAS B Earnings and Revenue Growth as at Sep 2024

engcon

Simply Wall St Value Rating: ★★★★★☆

Overview: Engcon AB (publ) designs, produces, and sells excavator tools across various international markets with a market cap of SEK17.76 billion.

Operations: Engcon AB (publ) generates revenue primarily from the sale of construction machinery and equipment, amounting to SEK1.54 billion. The company has a market cap of SEK17.76 billion.