Advertisement
Singapore markets open in 49 minutes
  • Straits Times Index

    3,499.89
    +2.11 (+0.06%)
     
  • S&P 500

    5,631.22
    +15.87 (+0.28%)
     
  • Dow

    40,211.72
    +210.82 (+0.53%)
     
  • Nasdaq

    18,472.57
    +74.17 (+0.40%)
     
  • Bitcoin USD

    64,977.23
    +4,237.78 (+6.98%)
     
  • CMC Crypto 200

    1,349.10
    +80.15 (+6.32%)
     
  • FTSE 100

    8,182.96
    -69.95 (-0.85%)
     
  • Gold

    2,426.60
    -2.30 (-0.09%)
     
  • Crude Oil

    81.79
    -0.12 (-0.15%)
     
  • 10-Yr Bond

    4.2290
    +0.0400 (+0.95%)
     
  • Nikkei

    41,190.68
    0.00 (0.00%)
     
  • Hang Seng

    18,015.94
    -277.46 (-1.52%)
     
  • FTSE Bursa Malaysia

    1,629.82
    +10.76 (+0.66%)
     
  • Jakarta Composite Index

    7,278.86
    -48.72 (-0.66%)
     
  • PSE Index

    6,689.37
    +41.14 (+0.62%)
     

June 2024 Insights Into Three Swedish Stocks Estimated Below Value

Amidst a backdrop of political uncertainty and fluctuating markets across Europe, Sweden's equities market presents a unique landscape for investors seeking value. This article explores three Swedish stocks that appear undervalued in the current economic climate, offering potential opportunities for those looking to diversify their portfolios with international assets.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Björn Borg (OM:BORG)

SEK55.00

SEK101.85

46%

Boule Diagnostics (OM:BOUL)

SEK10.60

SEK20.95

49.4%

Alleima (OM:ALLEI)

SEK69.55

SEK138.36

49.7%

Nordic Waterproofing Holding (OM:NWG)

SEK161.80

SEK296.14

45.4%

Net Insight (OM:NETI B)

SEK5.05

SEK9.84

48.7%

Nolato (OM:NOLA B)

SEK58.85

SEK111.99

47.4%

MilDef Group (OM:MILDEF)

SEK70.70

SEK132.15

46.5%

Humble Group (OM:HUMBLE)

SEK9.85

SEK19.39

49.2%

Sinch (OM:SINCH)

SEK22.06

SEK40.52

45.6%

Gigasun (OM:GIGA)

SEK3.79

SEK7.49

49.4%

Click here to see the full list of 45 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

ADVERTISEMENT

Let's uncover some gems from our specialized screener

AcadeMedia

Overview: AcadeMedia AB (publ) is an independent education provider operating in Sweden, Norway, the Netherlands, and Germany with a market capitalization of SEK 5.43 billion.

Operations: The company generates revenue from several educational services, with SEK 6.20 billion from Upper Secondary Schools, SEK 6.07 billion from Preschool & International, SEK 4.25 billion in Compulsory School, and SEK 1.79 billion in Adult Education.

Estimated Discount To Fair Value: 29.7%

AcadeMedia, valued at SEK 53.5, is trading below its estimated fair value of SEK 76.11, indicating a potential undervaluation by 29.7%. The company's earnings and revenue growth are outpacing the Swedish market, with earnings expected to rise significantly over the next three years and revenue forecasted to grow at 9.5% annually compared to the market's 1.8%. However, it has an unstable dividend track record and its forecasted Return on Equity is low at 13.5%. Recent financials show a strong performance with year-over-year increases in sales and net income for both quarterly and nine-month periods.

OM:ACAD Discounted Cash Flow as at Jun 2024
OM:ACAD Discounted Cash Flow as at Jun 2024

CellaVision

Overview: CellaVision AB (publ) specializes in developing and selling instruments, software, and reagents for the analysis of blood and body fluids, operating both in Sweden and internationally, with a market capitalization of SEK 6.05 billion.

Operations: The company generates SEK 708.28 million from its automated microscopy systems and reagents in the field of hematology.

Estimated Discount To Fair Value: 17.7%

CellaVision, priced at SEK 253.5, is trading under its fair value of SEK 308.09, suggesting a modest undervaluation. Recent financials reveal robust growth with Q1 sales and net income significantly higher than the previous year, alongside a dividend affirmation in May. The company's earnings are projected to grow by 24% annually over the next three years, outstripping the Swedish market prediction of 14% per year, supported by a strong forecasted Return on Equity of 23.9%.

OM:CEVI Discounted Cash Flow as at Jun 2024
OM:CEVI Discounted Cash Flow as at Jun 2024

MilDef Group

Overview: MilDef Group AB (publ) specializes in developing, manufacturing, and selling rugged IT solutions and special electronics mainly for the security and defense sectors, with a market capitalization of approximately SEK 2.82 billion.

Operations: The company generates its revenue primarily from the sale of computer hardware, totaling SEK 1.10 billion.

Estimated Discount To Fair Value: 46.5%

MilDef Group, currently priced at SEK 70.7, is trading significantly below its estimated fair value of SEK 132.15, indicating a deep undervaluation based on discounted cash flow metrics. Despite recent challenges including a Q1 net loss of SEK 11.4 million and decreased sales from the previous year, MilDef's earnings are expected to grow by 44.69% annually. Strategic contracts in Estonia and with BAE Systems highlight potential revenue streams, although its forecasted Return on Equity remains modest at 12.2%.

OM:MILDEF Discounted Cash Flow as at Jun 2024
OM:MILDEF Discounted Cash Flow as at Jun 2024

Key Takeaways

Searching for a Fresh Perspective?

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:ACAD OM:CEVI and OM:MILDEF.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com