As the European Central Bank’s recent rate cuts have bolstered optimism for further monetary easing, the pan-European STOXX Europe 600 Index has seen a modest rise, reflecting a positive sentiment in the region’s markets. This environment could be conducive for small-cap companies in Sweden, where identifying stocks with strong fundamentals and growth potential is crucial amid evolving economic conditions.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Softronic
NA
3.58%
7.41%
★★★★★★
Bahnhof
NA
9.02%
15.02%
★★★★★★
AB Traction
NA
5.38%
5.19%
★★★★★★
Firefly
NA
16.04%
32.29%
★★★★★★
AQ Group
16.75%
15.13%
21.34%
★★★★★★
Byggmästare Anders J Ahlström Holding
NA
30.31%
-9.00%
★★★★★★
Svolder
NA
-22.68%
-24.17%
★★★★★★
Linc
NA
56.01%
0.54%
★★★★★★
Bulten
62.66%
16.28%
20.43%
★★★★☆☆
Nederman Holding
73.66%
10.94%
15.88%
★★★★☆☆
Click here to see the full list of 56 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.
Let’s uncover some gems from our specialized screener.
Simply Wall St Value Rating: ★★★★★★
Overview: Linc AB is a private equity and venture capital firm focused on early and mature stage investments in pharmaceutical, life-science, and med-tech companies, with a market cap of approximately SEK4.66 billion.
Operations: Linc AB’s revenue primarily comes from its listed holdings, amounting to SEK1.56 billion, while its unlisted holdings show a slight negative value of SEK0.79 million.
Linc, a Swedish company, showcases impressive earnings growth of 610% over the past year, significantly outpacing the Capital Markets industry’s 40.9%. With a price-to-earnings ratio of just 3x compared to the Swedish market’s 23.4x, it seems undervalued. Despite not being free cash flow positive recently, Linc remains debt-free and doesn’t face concerns about interest coverage or cash runway due to its profitability. The company’s high level of non-cash earnings suggests strong operational performance but also highlights potential areas for improvement in cash generation efficiency.
OM:LINC Earnings and Revenue Growth as at Oct 2024
Simply Wall St Value Rating: ★★★★☆☆
Overview: Scandi Standard AB (publ) is a company that produces and sells chilled, frozen, and ready-to-eat chicken products across various countries including Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, and internationally with a market cap of approximately SEK5.37 billion.
Operations: Scandi Standard generates revenue primarily from its Ready-To-Cook and Ready-To-Eat segments, with the former contributing SEK9.70 billion and the latter SEK2.61 billion.
Story Continues
Scandi Standard, a notable player in the Swedish food sector, is trading at 58.2% below its estimated fair value, presenting an intriguing opportunity. Over the past five years, their debt to equity ratio has impressively decreased from 121.8% to 61.4%, indicating improved financial health despite a high net debt to equity ratio of 59.7%. While earnings grew by 14.6% last year, they lagged behind the broader food industry’s growth of 24.3%. The company shows strong cash flow positivity and maintains high-quality earnings with interest payments well covered by EBIT at a multiple of 3.5x.
Simply Wall St Value Rating: ★★★★★★
Overview: Svolder AB (publ) is a publicly owned investment manager with a market capitalization of SEK6.22 billion.
Operations: Svolder AB (publ) generates revenue from its investment management activities, with reported revenue of SEK122.10 million.
Svolder, a Swedish financial entity, has shown a remarkable turnaround by becoming profitable this year with net income of SEK 876.2 million, contrasting sharply with last year’s loss of SEK 525.5 million. The company enjoys a debt-free status for the past five years and boasts high-quality earnings, which likely contributes to its solid financial health. Its price-to-earnings ratio stands at 6.9x, significantly lower than the market average of 23.4x, suggesting it might be undervalued in its sector. Despite reporting a net loss of SEK 289.8 million in Q4 this year compared to SEK 681.2 million last year, Svolder’s basic earnings per share improved from a loss of SEK 5.1 to an earning of SEK 8.6 over the full year period ending August 2024.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include OM:LINC OM:SCST and OM:SVOL B.
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Publish date : 2024-10-23 19:17:00
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