In This Article:
As Sweden's Riksbank has recently reduced borrowing costs, the Swedish market is experiencing a favorable environment for small-cap stocks. Amid this backdrop, we explore three promising yet under-the-radar Swedish stocks that could benefit from these economic conditions. In such a dynamic market, identifying strong investment opportunities often involves looking at companies with solid fundamentals and growth potential.
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 | 9.11% | 15.30% | ★★★★★★ |
| Firefly | NA | 15.90% | 31.36% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| OEM International | 2.03% | 11.97% | 18.62% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
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 SEK8.20 billion.
Operations: Bergman & Beving AB (publ) generates revenue primarily from three segments: Core Solutions (SEK1.41 billion), Safety Technology (SEK1.62 billion), and Industrial Equipment (SEK1.76 billion).
Bergman & Beving, a Swedish trade distributor, reported Q1 2024 earnings with sales of SEK 1.25 billion and net income of SEK 52 million. Despite negative earnings growth over the past year, its EBIT covers interest payments by 4x. The company's net debt to equity ratio stands at a high 42.6%, up from 31.9% five years ago. Trading at nearly 30% below estimated fair value, future earnings are projected to grow annually by about 13%.
BioGaia
Simply Wall St Value Rating: ★★★★★★
Overview: BioGaia AB (publ) is a healthcare company that provides probiotic products worldwide and has a market cap of SEK12.91 billion.
Operations: BioGaia generates revenue primarily from its Pediatrics segment (SEK1.07 billion) and Adult Health segment (SEK288.68 million).
BioGaia, a profitable biotech company, is debt-free and trades at a P/E ratio of 32.1x, below the industry average of 49.4x. Recent earnings show strong performance with Q2 sales reaching SEK 384 million and net income at SEK 111 million. The firm’s strategic expansion into Australia and New Zealand underscores its growth ambitions in high-potential markets. Despite a slight negative earnings growth (-3.3%) last year, future earnings are forecasted to grow by 7.63% annually.