Swedish Exchange Value Stock Selections for July 2024

As global markets navigate through varying degrees of economic recovery and uncertainty, Sweden's stock market presents unique opportunities for investors looking for value. In the context of current economic shifts and market conditions, identifying undervalued stocks requires a keen understanding of both sectoral performance and broader economic indicators.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
RVRC Holding (OM:RVRC)	SEK44.74	SEK87.70	49%
Björn Borg (OM:BORG)	SEK57.40	SEK106.70	46.2%
Nordic Waterproofing Holding (OM:NWG)	SEK161.80	SEK308.69	47.6%
Lindab International (OM:LIAB)	SEK227.80	SEK426.41	46.6%
Stille (OM:STIL)	SEK208.00	SEK395.43	47.4%
Biotage (OM:BIOT)	SEK168.00	SEK319.04	47.3%
Hexatronic Group (OM:HTRO)	SEK53.08	SEK105.89	49.9%
Cavotec (OM:CCC)	SEK19.90	SEK36.78	45.9%
Nordisk Bergteknik (OM:NORB B)	SEK17.34	SEK32.41	46.5%
Image Systems (OM:IS)	SEK1.45	SEK2.85	49.1%

Click here to see the full list of 44 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of from the screener

CTT Systems (OM:CTT)

Overview: CTT Systems AB, based in Sweden, specializes in designing, manufacturing, and selling aircraft humidity control systems globally, with a market capitalization of approximately SEK 3.92 billion.

Operations: The company generates its revenue primarily from the aerospace and defense sector, amounting to SEK 314.20 million.

Estimated Discount To Fair Value: 29.0%

CTT Systems, priced at SEK313, significantly undervalues by DCF metrics with a fair value estimate of SEK441.12. Despite its unstable dividend history, the company shows strong growth prospects with earnings expected to rise by 21.58% annually and revenue forecasted to increase by 20.3% per year, outpacing the Swedish market considerably. Recent events highlight CTT's solidifying market position, including confirmed airline selections for their humidification systems in upcoming A350 and Boeing 777X batches starting from 2025.

• The analysis detailed in our CTT Systems growth report hints at robust future financial performance.
• Dive into the specifics of CTT Systems here with our thorough financial health report.

Husqvarna (OM:HUSQ B)

Overview: Husqvarna AB (publ) specializes in manufacturing and distributing outdoor power products, watering products, and lawn care equipment, boasting a market capitalization of SEK 49.89 billion.

Operations: The company generates revenue through several key segments, including Gardena at SEK 13.06 billion, Husqvarna Construction at SEK 8.23 billion, and Husqvarna Forest & Garden at SEK 29.38 billion.

Estimated Discount To Fair Value: 38.7%

Husqvarna, trading at SEK 87.36, is identified as undervalued by DCF analysis with a fair value of SEK 142.63, indicating a significant discount. Recent earnings show a decline from SEK 17.17 billion to SEK 14.72 billion year-over-year with net income also falling, reflecting challenges despite strong brand enhancement moves like the Liverpool FC partnership aimed at boosting global visibility. However, Husqvarna's earnings are expected to grow substantially by about 24.7% annually over the next three years, outperforming the Swedish market's growth forecast of 14.4%.

• Our growth report here indicates Husqvarna may be poised for an improving outlook.
• Get an in-depth perspective on Husqvarna's balance sheet by reading our health report here.

Sweco (OM:SWEC B)

Overview: Sweco AB (publ) offers architecture and engineering consultancy services globally, with a market capitalization of approximately SEK 53.33 billion.

Operations: Sweco's revenue is segmented across various regions, with Sweden generating SEK 8.52 billion, Norway SEK 3.39 billion, Belgium SEK 3.92 billion, Denmark SEK 2.98 billion, Finland SEK 3.67 billion, the Netherlands SEK 2.89 billion, and Germany & Central Europe contributing SEK 2.62 billion.

Estimated Discount To Fair Value: 31.9%

Sweco, priced at SEK 148.5, is considered undervalued based on DCF with an intrinsic value of SEK 218.08, indicating a substantial margin of safety. While its dividend history is inconsistent, Sweco’s earnings are projected to increase by 16.41% annually, surpassing the Swedish market's average growth rate. Recent strategic partnerships for green hydrogen projects with Helen and VoltH2 highlight its commitment to expanding in sustainable energy sectors, potentially boosting future revenue streams despite a slight dip in Q1 earnings year-over-year from SEK 625 million to SEK 558 million.

• The growth report we've compiled suggests that Sweco's future prospects could be on the up.
• Take a closer look at Sweco's balance sheet health here in our report.

Next Steps

• Dive into all 44 of the Undervalued Swedish Stocks Based On Cash Flows we have identified here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

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