Operations: The company generates SEK 352 million in revenue from its sporting goods segment.

Estimated Discount To Fair Value: 21.6%

Mips, with a current price of SEK 410.2, appears undervalued by over 20% against a fair value estimate of SEK 523.1 based on discounted cash flow metrics. The company's earnings are expected to grow at an impressive rate of about 49.6% annually, significantly outpacing the Swedish market forecast of 14.7%. Despite recent declines in quarterly sales and net income, Mips maintains robust long-term revenue growth projections at around 30% per year and anticipates a high return on equity of approximately 33.8% in three years' time. However, its dividend coverage is weak, reflecting potential sustainability issues with its payout ratio.

• The growth report we've compiled suggests that Mips' future prospects could be on the up.

• Unlock comprehensive insights into our analysis of Mips stock in this financial health report.

Nolato

Overview: Nolato AB is a global developer and manufacturer of plastic, silicone, and thermoplastic elastomer products serving various sectors including medical technology, pharmaceuticals, consumer electronics, and automotive, with a market capitalization of SEK 16.23 billion.

Operations: The revenue for the Medical Solutions segment is SEK 5.34 billion.

Estimated Discount To Fair Value: 49.2%

Nolato is currently priced at SEK 60.25, significantly below the DCF-derived fair value of SEK 118.63, indicating a substantial undervaluation. The company's earnings are projected to increase by 22.75% annually over the next three years, surpassing the Swedish market's growth rate of 14.7%. However, its forecasted revenue growth at 6.1% per year is modest compared to its earnings growth potential and the dividend coverage by free cash flows remains weak, casting some concerns on sustainability despite strong profitability indicators like a future ROE of 14.4%. Recent corporate activities include a dividend decrease and leadership changes which could impact future performance dynamics.

• According our earnings growth report, there's an indication that Nolato might be ready to expand.

• Dive into the specifics of Nolato here with our thorough financial health report.

Taking Advantage

• Explore the 46 names from our Undervalued Swedish Stocks Based On Cash Flows screener here.

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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:AFRYOM:MIPS and OM:NOLA B.

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