In This Article:
As global markets experience mixed performances and economic indicators offer varied messages, the Swedish market has shown resilience amid broader European trends. With investors closely monitoring earnings reports and economic data, opportunities may arise for discerning individuals to identify undervalued stocks. In this context, a good stock is often characterized by strong fundamentals, robust business models, and potential for growth despite current market uncertainties. This article will explore Husqvarna and two other Swedish stocks that could be trading at a discount.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Gr?nges (OM:GRNG) | SEK130.50 | SEK259.94 | 49.8% |
Husqvarna (OM:HUSQ B) | SEK72.68 | SEK142.53 | 49% |
Nordic Waterproofing Holding (OM:NWG) | SEK160.40 | SEK310.86 | 48.4% |
Volati (OM:VOLO) | SEK120.00 | SEK233.44 | 48.6% |
TF Bank (OM:TFBANK) | SEK260.00 | SEK519.73 | 50% |
RaySearch Laboratories (OM:RAY B) | SEK139.20 | SEK277.95 | 49.9% |
Nordisk Bergteknik (OM:NORB B) | SEK16.96 | SEK30.98 | 45.3% |
Sinch (OM:SINCH) | SEK28.90 | SEK56.90 | 49.2% |
MilDef Group (OM:MILDEF) | SEK73.80 | SEK142.86 | 48.3% |
Bactiguard Holding (OM:BACTI B) | SEK70.60 | SEK133.51 | 47.1% |
Underneath we present a selection of stocks filtered out by our screen.
Husqvarna
Overview: Husqvarna AB (publ) produces and sells outdoor power products, watering products, and lawn care power equipment, with a market cap of SEK41.50 billion.
Operations: The company's revenue segments include Gardena (SEK12.59 billion), Group Common (SEK157 million), Husqvarna Construction (SEK8.14 billion), and Husqvarna Forest & Garden (SEK28.37 billion).
Estimated Discount To Fair Value: 49%
Husqvarna, trading at SEK 72.68, is significantly undervalued based on discounted cash flow analysis with an estimated fair value of SEK 142.53. Despite a recent decline in sales and net income for Q2 2024 compared to the previous year, earnings are forecast to grow significantly at 28% per year over the next three years. However, high debt levels and large one-off items impacting financial results remain concerns.
Lime Technologies
Overview: Lime Technologies AB (publ) offers SaaS-based CRM solutions in the Nordic region and has a market cap of SEK4.83 billion.
Operations: The company generates revenue primarily from selling and implementing CRM software systems, amounting to SEK631.84 million.