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Undiscovered Gems in Sweden To Watch This August 2024

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As global markets react positively to anticipated interest rate cuts, Sweden's Riksbank has also reduced borrowing costs, creating a favorable environment for small-cap stocks. Amid this backdrop, identifying promising investments becomes crucial; strong fundamentals and growth potential are key attributes of stocks worth watching in the current market climate.

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%

★★★★★★

FM Mattsson

NA

7.80%

13.15%

★★★★★★

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%

★★★★★★

Click here to see the full list of 56 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

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

Beijer Alma

Simply Wall St Value Rating: ★★★★☆☆

Overview: Beijer Alma AB (publ) and its subsidiaries operate in component manufacturing and industrial trading across Sweden, the Nordic region, Europe, North America, Asia, and internationally with a market cap of SEK12.62 billion.

Operations: Beijer Alma generates revenue primarily from its Lesjöfors and Beijer Tech segments, contributing SEK4.86 billion and SEK2.21 billion respectively.

Beijer Alma, a notable player in Sweden's machinery sector, reported Q2 2024 sales of SEK 1.89 billion and net income of SEK 142 million. The company's earnings have grown by 8.2% over the past year, outpacing the industry's 0.9%. Despite a high net debt to equity ratio of 57.8%, its interest payments are well covered by EBIT at 4.5x coverage. Trading at nearly 28% below estimated fair value, Beijer Alma shows promising growth potential with forecasted annual earnings growth of over 19%.

OM:BEIA B Debt to Equity as at Aug 2024
OM:BEIA B Debt to Equity as at Aug 2024

Bergman & Beving

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bergman & Beving AB (publ) offers solutions for the manufacturing and construction sectors in Sweden, Norway, Finland, and internationally with a market cap of SEK8.49 billion.

Operations: Bergman & Beving generates revenue from three primary segments: Core Solutions (SEK1.41 billion), Safety Technology (SEK1.62 billion), and Industrial Equipment (SEK1.76 billion). The company also reports a segment adjustment of -SEK31 million.