CellaVision And 2 Swedish Stocks Estimated To Be Trading Below Intrinsic Value
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As global markets face heightened volatility and economic uncertainties, the Swedish stock market has also experienced fluctuations, with investors closely monitoring value opportunities amid broader market trends. In this environment, identifying stocks that are trading below their intrinsic value can be a prudent strategy for long-term growth.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| CTT Systems (OM:CTT) | SEK264.00 | SEK499.23 | 47.1% |
| Stille (OM:STIL) | SEK224.00 | SEK446.03 | 49.8% |
| Paradox Interactive (OM:PDX) | SEK141.10 | SEK261.83 | 46.1% |
| Nolato (OM:NOLA B) | SEK53.95 | SEK99.07 | 45.5% |
| Dometic Group (OM:DOM) | SEK68.40 | SEK132.59 | 48.4% |
| Flexion Mobile (OM:FLEXM) | SEK9.24 | SEK17.95 | 48.5% |
| Serstech (OM:SERT) | SEK1.49 | SEK2.65 | 43.8% |
| Svedbergs Group (OM:SVED BTA B) | SEK36.30 | SEK65.51 | 44.6% |
| BHG Group (OM:BHG) | SEK14.08 | SEK26.81 | 47.5% |
| W?stbygg Gruppen (OM:WBGR B) | SEK52.00 | SEK99.22 | 47.6% |
Let's take a closer look at a couple of our picks from the screened companies.
CellaVision
Overview: CellaVision AB (publ) develops and sells instruments, software, and reagents for blood and body fluids analysis in Sweden and internationally, with a market cap of SEK5.83 billion.
Operations: CellaVision generates revenue primarily from automated microscopy systems and reagents in the field of hematology, amounting to SEK726.40 million.
Estimated Discount To Fair Value: 33.6%
CellaVision is trading at SEK244.5, significantly below its estimated fair value of SEK368.01, indicating it may be undervalued based on cash flows. The company’s earnings are forecast to grow 24.1% annually, outpacing the Swedish market's 15.8%. Recent earnings reports show a strong performance with Q2 sales at SEK187.79 million and net income of SEK38.55 million, reflecting consistent growth from the previous year’s figures.
HMS Networks
Overview: HMS Networks AB (publ) provides products that enable industrial equipment to communicate and share information globally, with a market cap of SEK18.90 billion.
Operations: HMS Networks AB (publ) generates revenue primarily from its Wireless Communications Equipment segment, which accounted for SEK3.01 billion.
Estimated Discount To Fair Value: 15.1%
HMS Networks is trading at SEK376.6, below its estimated fair value of SEK443.61. Despite a high level of debt and recent shareholder dilution, HMS's earnings are forecast to grow significantly at 26.3% annually, outpacing the Swedish market's 15.8%. However, profit margins have decreased from 20.1% to 14%. Recent Q2 results show sales increased to SEK845 million from SEK703 million last year, though net income dropped to SEK34 million from SEK116 million.