H & M Hennes & Mauritz And 2 Other Swedish Stocks Considered Below Estimated Intrinsic Value

In This Article:

As European markets grapple with political uncertainty and fluctuating government yields, investors are keenly observing market dynamics for potential opportunities. In this context, exploring undervalued stocks like H & M Hennes & Mauritz in Sweden could offer interesting prospects, especially when considering intrinsic values that may not yet be fully recognized by the broader market.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Bj?rn Borg (OM:BORG)

SEK54.60

SEK101.88

46.4%

Boule Diagnostics (OM:BOUL)

SEK10.50

SEK20.93

49.8%

Nordic Waterproofing Holding (OM:NWG)

SEK161.60

SEK296.16

45.4%

RaySearch Laboratories (OM:RAY B)

SEK141.60

SEK278.12

49.1%

Nolato (OM:NOLA B)

SEK59.75

SEK114.72

47.9%

Net Insight (OM:NETI B)

SEK5.12

SEK9.53

46.2%

MilDef Group (OM:MILDEF)

SEK68.20

SEK132.74

48.6%

Humble Group (OM:HUMBLE)

SEK9.775

SEK19.45

49.8%

Hexatronic Group (OM:HTRO)

SEK50.98

SEK99.00

48.5%

Enea (OM:ENEA)

SEK75.10

SEK147.75

49.2%

Click here to see the full list of 47 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies

H & M Hennes & Mauritz

Overview: H & M Hennes & Mauritz AB operates globally, offering clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children with a market cap of approximately SEK 303.35 billion.

Operations: The company generates SEK 234.83 billion in revenue from its apparel segment.

Estimated Discount To Fair Value: 36.7%

H & M Hennes & Mauritz AB, priced at SEK188.35, is considered undervalued with a fair value estimate of SEK297.75, reflecting a significant discount. The company's earnings are expected to grow by 16.9% annually, outpacing the Swedish market forecast of 14.1%. However, its dividend coverage is weak despite recent affirmations of a SEK6.50 per share annual payout. Notably, H&M's revenue growth projection stands at 3.6% yearly, above the national average of 1.9%. Recent elections and dividend affirmations underscore stability in governance and shareholder returns.

OM:HM B Discounted Cash Flow as at Jun 2024
OM:HM B Discounted Cash Flow as at Jun 2024

Humble Group

Overview: Humble Group AB, a company based in Sweden, refines, develops, and distributes fast-moving consumer goods both domestically and internationally, with a market capitalization of approximately SEK 4.34 billion.