Ratos And 2 Other Undiscovered Gems In Sweden Backed By Strong Fundamentals

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In the midst of global economic uncertainties, including a notable drop in major indices and renewed fears about economic growth, investors are increasingly looking towards markets with strong fundamentals. Sweden's market offers promising opportunities, particularly within its small-cap segment. Identifying stocks with robust financial health and growth potential is crucial in such volatile times. This article highlights Ratos and two other undiscovered gems in Sweden that stand out due to their solid fundamentals and resilience amidst broader market turbulence.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

Byggm?stare Anders J Ahlstr?m Holding

NA

30.31%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid F?rs?kringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 54 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Ratos

Simply Wall St Value Rating: ★★★★☆☆

Overview: Ratos AB (publ) is a private equity firm specializing in buyouts, turnarounds, add-on acquisitions, and middle market transactions with a market cap of approximately SEK11.22 billion.

Operations: Ratos generates revenue primarily from its Consumer (SEK5.65 billion), Industry (SEK10.47 billion), and Construction & Services (SEK16.77 billion) segments, with a minor adjustment of SEK-20 million.

Ratos, a small cap Swedish investment company, has shown robust earnings growth of 34% annually over the past five years. Recently, Ratos reported net income of SEK 628 million for H1 2024 compared to SEK 558 million a year ago. The company's debt to equity ratio has been reduced from 56.6% to 33% over five years. Notably, SSEA Group secured four new contracts worth SEK 1.1 billion in Stockholm and Gothenburg regions, enhancing future prospects significantly.

OM:RATO B Earnings and Revenue Growth as at Sep 2024
OM:RATO B Earnings and Revenue Growth as at Sep 2024

RaySearch Laboratories

Simply Wall St Value Rating: ★★★★★★

Overview: RaySearch Laboratories AB (publ) is a medical technology company that provides software solutions for cancer care across various global regions, with a market cap of SEK5.64 billion.

Operations: RaySearch Laboratories generates revenue primarily from its healthcare software segment, which brought in SEK1.13 billion. The company's financial performance is influenced by its cost structure and market presence across multiple global regions.