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Amidst a landscape of fluctuating global markets, Sweden's stock market presents intriguing opportunities for investors looking for value. As broader indices show mixed performances with geopolitical tensions and economic policies influencing market dynamics, identifying undervalued stocks becomes a strategic approach to potentially capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Truecaller (OM:TRUE B) | SEK34.52 | SEK68.64 | 49.7% |
Bj?rn Borg (OM:BORG) | SEK55.20 | SEK102.31 | 46% |
Arcoma (OM:ARCOMA) | SEK17.90 | SEK35.75 | 49.9% |
Alleima (OM:ALLEI) | SEK68.50 | SEK127.57 | 46.3% |
RaySearch Laboratories (OM:RAY B) | SEK142.00 | SEK280.65 | 49.4% |
Biotage (OM:BIOT) | SEK160.30 | SEK297.88 | 46.2% |
Nolato (OM:NOLA B) | SEK57.80 | SEK111.82 | 48.3% |
MilDef Group (OM:MILDEF) | SEK66.50 | SEK131.72 | 49.5% |
Humble Group (OM:HUMBLE) | SEK9.975 | SEK19.46 | 48.7% |
Hexatronic Group (OM:HTRO) | SEK50.94 | SEK99.34 | 48.7% |
Below we spotlight a couple of our favorites from our exclusive screener
Addnode Group
Overview: Addnode Group AB provides software and services for design, construction, product data information, project collaboration, and facility management across Sweden, Nordic countries, the US, the UK, Germany, and other international markets with a market capitalization of SEK 16.33 billion.
Operations: The company's revenue is primarily generated from three segments: Design Management at SEK 4.70 billion, Product Lifecycle Management at SEK 1.91 billion, and Process Management (including Content Management) at SEK 1.29 billion.
Estimated Discount To Fair Value: 11.7%
Addnode Group, trading at SEK 122.5, is below our fair value estimate of SEK 138.7, suggesting undervaluation based on cash flows. Despite a modest undervaluation and lower profit margins year-over-year (3.8% from 5.5%), the company shows promise with expected earnings growth of 21.4% annually over the next three years—outpacing the Swedish market's forecast of 13.9%. Revenue growth projections also exceed market averages at an annual rate of 8.8%. Recent auditor changes and executive shifts signal internal restructuring which could impact future performance dynamics.
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Our growth report here indicates Addnode Group may be poised for an improving outlook.
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Delve into the full analysis health report here for a deeper understanding of Addnode Group.
RaySearch Laboratories
Overview: RaySearch Laboratories AB, a medical technology company, specializes in software solutions for cancer care across various global regions and has a market capitalization of approximately SEK 4.87 billion.