Undiscovered Gems In Sweden October 2024

In This Article:

As the European markets experience a boost from consecutive interest rate cuts by the European Central Bank, investor sentiment in Sweden is also being influenced by these broader economic shifts. In this context, identifying promising small-cap stocks that can capitalize on these changing conditions becomes crucial for investors seeking opportunities in less explored segments of the Swedish market.

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%

★★★★★★

Investment AB Öresund

NA

0.07%

0.45%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

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.

Here we highlight a subset of our preferred stocks from the screener.

AQ Group

Simply Wall St Value Rating: ★★★★★★

Overview: AQ Group AB (publ) is a company that manufactures and sells components and systems for industrial customers across Sweden, other European countries, and internationally, with a market cap of approximately SEK12.17 billion.

Operations: AQ Group generates revenue primarily from its Component and System segments, with the Component segment contributing SEK7.81 billion and the System segment adding SEK1.59 billion. The company's financial structure is significantly influenced by these two segments, highlighting their importance in its overall revenue model.

AQ Group, a notable player in the Swedish market, has seen its earnings grow by 1.7% over the past year, outpacing the Electrical industry average of 0.3%. The company trades at a significant discount to its estimated fair value, suggesting potential undervaluation. AQ boasts high-quality earnings and strong debt management; its debt-to-equity ratio has decreased from 31.4% to 16.8% over five years, and it holds more cash than total debt. Despite a slight dip in third-quarter sales to SEK 1,949 million from SEK 2,149 million last year, nine-month net income rose to SEK 510 million from SEK 499 million previously.

OM:AQ Debt to Equity as at Oct 2024
OM:AQ Debt to Equity as at Oct 2024

MedCap

Simply Wall St Value Rating: ★★★★★★

Overview: MedCap AB (publ) is a private equity firm that focuses on investments in secondary direct, later stage, industry consolidation, and growth capital, with a market capitalization of approximately SEK7.97 billion.