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In the wake of recent announcements by central banks to cut interest rates, small-cap stocks have shown remarkable resilience and outperformance in global markets. Sweden's Riksbank has also joined this trend, reducing borrowing costs and signaling further rate cuts, creating a favorable environment for small-cap companies. Identifying promising small-cap stocks often involves looking for robust business models, innovative products or services, and strong growth potential—qualities that can thrive in the current economic landscape shaped by lower interest rates.
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 | 15.90% | 31.36% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Byggmästare Anders J Ahlström Holding | NA | 33.57% | -9.00% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
Beijer Alma
Simply Wall St Value Rating: ★★★★☆☆
Overview: Beijer Alma AB (publ), along with its subsidiaries, operates in component manufacturing and industrial trading across Sweden, the Nordic region, Europe, North America, Asia, and internationally, with a market cap of SEK12.23 billion.
Operations: Lesjöfors generates SEK4.86 billion in revenue, while Beijer Tech contributes SEK2.21 billion.
Beijer Alma, a notable player in the Swedish market, saw its debt to equity ratio rise from 54.2% to 69.1% over five years while maintaining a net debt to equity ratio of 57.8%. The company reported second-quarter sales of SEK 1.89 billion and net income of SEK 142 million, with basic earnings per share at SEK 2.35. Trading at nearly 30% below fair value estimates and showing an annual earnings growth of 8.2%, Beijer Alma is positioned well against industry peers despite its high debt levels and strong EBIT coverage (4.5x).
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Click to explore a detailed breakdown of our findings in Beijer Alma's health report.
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Assess Beijer Alma's past performance with our detailed historical performance reports.
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 SEK10.87 billion.
Operations: Clas Ohlson generates revenue primarily from its retail specialty segment, which amounted to SEK10.23 billion. The company's financial performance includes a focus on managing costs and optimizing net profit margins.