Husqvarna And Two More Swedish Exchange Stocks Considered Undervalued By Market Estimates
The Swedish stock market, like many global markets, has been reacting to broader economic signals, notably influenced by recent shifts in U.S. inflation rates and monetary policy expectations. As investors navigate through these changing tides, identifying undervalued stocks such as Husqvarna becomes crucial for those looking to potentially enhance their portfolios during uncertain times.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
RVRC Holding (OM:RVRC) | SEK46.00 | SEK86.95 | 47.1% |
Afry (OM:AFRY) | SEK204.00 | SEK394.92 | 48.3% |
Nordic Waterproofing Holding (OM:NWG) | SEK160.00 | SEK305.65 | 47.7% |
Nolato (OM:NOLA B) | SEK62.20 | SEK118.78 | 47.6% |
Stille (OM:STIL) | SEK208.00 | SEK395.81 | 47.4% |
Dometic Group (OM:DOM) | SEK70.05 | SEK130.23 | 46.2% |
Biotage (OM:BIOT) | SEK173.80 | SEK317.13 | 45.2% |
Svedbergs Group (OM:SVED BTA B) | SEK36.30 | SEK65.51 | 44.6% |
Nordisk Bergteknik (OM:NORB B) | SEK16.88 | SEK30.83 | 45.3% |
Image Systems (OM:IS) | SEK1.505 | SEK2.85 | 47.2% |
Here's a peek at a few of the choices from the screener.
Husqvarna
Overview: Husqvarna AB (publ) specializes in manufacturing and distributing outdoor power products, watering products, and lawn care equipment, with a market capitalization of approximately SEK 52.65 billion.
Operations: Husqvarna AB's revenue is primarily generated from three segments: Gardena at SEK 13.06 billion, Husqvarna Construction at SEK 8.23 billion, and Husqvarna Forest & Garden at SEK 29.38 billion.
Estimated Discount To Fair Value: 31.8%
Husqvarna, trading at SEK 92.16, is significantly undervalued based on a fair value estimate of SEK 135.09, reflecting a strong potential upside. Despite its high debt levels and low forecasted return on equity at 14%, the company's earnings are expected to grow robustly by approximately 24.9% annually over the next three years, outpacing the Swedish market's growth. Recent strategic partnerships, like with Liverpool Football Club, aim to enhance global brand visibility and market penetration.
Sweco
Overview: Sweco AB (publ) offers architecture and engineering consultancy services globally, with a market capitalization of approximately SEK 56.42 billion.
Operations: Sweco's revenue is primarily generated from its operations in Sweden (SEK 8.52 billion), followed by Belgium (SEK 3.92 billion), Norway (SEK 3.39 billion), Finland (SEK 3.67 billion), Denmark (SEK 2.98 billion), the Netherlands (SEK 2.89 billion), Germany & Central Europe (SEK 2.62 billion), and the UK (SEK 1.46 billion).
Estimated Discount To Fair Value: 27.7%
Sweco, priced at SEK 157.3, is considered undervalued with an estimated fair value of SEK 217.7, indicating a potential upside. The company's earnings are expected to grow by 16.56% annually, outperforming the Swedish market forecast of 15% growth. Recent contracts such as the SEK 400 million deal for railway expansion between Uppsala and Stockholm highlight its strong position in infrastructure development despite an unstable dividend track record and modest annual revenue growth projections of 5.3%.
Insights from our recent growth report point to a promising forecast for Sweco's business outlook.
Navigate through the intricacies of Sweco with our comprehensive financial health report here.
Xvivo Perfusion
Overview: Xvivo Perfusion AB is a medical technology company specializing in machines and solutions for organ assessment and preservation before transplantation, operating globally with a market capitalization of SEK 16.22 billion.
Operations: Xvivo Perfusion's revenue is generated from three main segments: Services at SEK 83.39 million, Thoracic at SEK 451.49 million, and Abdominal at SEK 163.85 million.
Estimated Discount To Fair Value: 11.8%
Xvivo Perfusion, with a current price of SEK 515, appears modestly undervalued against a fair value estimate of SEK 583.88. Recent earnings show robust growth, with sales reaching SEK 396.37 million and net income at SEK 49.98 million in the first half of 2024, significantly up from the previous year. Despite this positive trend and expected revenue growth outpacing the market at an annual rate of 28%, concerns exist due to its volatile share price and low forecasted Return on Equity at only 9.8%.
Where To Now?
Access the full spectrum of 44 Undervalued Swedish Stocks Based On Cash Flows by clicking on this link.
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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:HUSQ B OM:SWEC B and OM:XVIVO.
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