Stock Analysis
Despite recent global market turbulence and a slowdown in the U.S. labor market, Sweden's small-cap sector continues to offer intriguing opportunities for investors. As we navigate through August 2024, it's essential to identify stocks with strong fundamentals and growth potential that can withstand broader economic uncertainties. In this context, discovering lesser-known companies with solid business models and innovative approaches can be particularly rewarding.
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% | ★★★★★★ |
| Bahnhof | NA | 9.47% | 15.07% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| Karnell Group | 44.29% | 22.04% | 39.45% | ★★★★★☆ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
CTT Systems (OM:CTT)
Simply Wall St Value Rating: ★★★★★☆
Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft globally, with a market cap of SEK3.31 billion.
Operations: CTT Systems generates revenue primarily from its Aerospace & Defense segment, amounting to SEK317.70 million. The company has a market cap of SEK3.31 billion.
CTT Systems, a niche player in the Aerospace & Defense sector, has seen its earnings grow 6.5% annually over the past five years and is trading at 47.1% below its estimated fair value. The company reported SEK 175.4 million in revenue for H1 2024, with net income of SEK 49.1 million compared to SEK 42.7 million last year. With EBIT covering interest payments by a factor of 255x and more cash than total debt, CTT demonstrates robust financial health and promising growth prospects in cabin humidification solutions for major aircraft manufacturers like Airbus and Boeing.
- Click to explore a detailed breakdown of our findings in CTT Systems' health report.
Assess CTT Systems' past performance with our detailed historical performance reports.
Proact IT Group (OM:PACT)
Simply Wall St Value Rating: ★★★★★★
Overview: Proact IT Group AB (publ) offers data and information management services, focusing on cloud services and data center solutions across Sweden, the United Kingdom, the Netherlands, Germany, and other international markets, with a market cap of approximately SEK4.08 billion.
Operations: Proact IT Group AB (publ) generates revenue primarily from its Nordics & Baltics segment (SEK2.59 billion), followed by Central Europe (SEK876.95 million) and the UK (SEK684.62 million). The company also reports significant revenue from its West segment, encompassing Belgium and the Netherlands, amounting to SEK833.98 million.
Proact IT Group has been performing impressively, with earnings growing by 41.7% over the past year, significantly outpacing the -5.6% growth in the IT industry. The company's debt to equity ratio has improved from 78.3% to 48.8% over five years, indicating better financial health. Trading at 40.1% below its estimated fair value, Proact seems undervalued compared to peers and industry standards. Net income for Q2 2024 was SEK 56.9 million against SEK 28.8 million a year ago, reflecting strong operational performance and high-quality earnings.
- Dive into the specifics of Proact IT Group here with our thorough health report.
Review our historical performance report to gain insights into Proact IT Group's's past performance.
Scandi Standard (OM:SCST)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Scandi Standard AB (publ) produces and sells chilled, frozen, and ready-to-eat chicken products across Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, rest of Europe, and internationally with a market cap of SEK5.23 billion.
Operations: Scandi Standard generates revenue primarily from its Ready-To-Cook segment (SEK9.70 billion), followed by the Ready-To-Eat segment (SEK2.61 billion).
Scandi Standard, a notable player in the Swedish poultry market, has seen its net debt to equity ratio improve from 121.8% to 61.4% over the past five years, though it remains high at 59.7%. Trading at roughly half its estimated fair value and with earnings growth of 14.6%, it still lags behind the food industry’s 17.9%. The company recently secured a SEK 3,200 million sustainability-linked loan to refinance existing debt and support growth initiatives.
- Click here to discover the nuances of Scandi Standard with our detailed analytical health report.
Evaluate Scandi Standard's historical performance by accessing our past performance report.
Key Takeaways
- Unlock more gems! Our Swedish Undiscovered Gems With Strong Fundamentals screener has unearthed 48 more companies for you to explore.Click here to unveil our expertly curated list of 51 Swedish Undiscovered Gems With Strong Fundamentals.
- Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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.
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About OM:SCST
Scandi Standard
Produces and sells chilled, frozen, and ready-to-eat chicken products in Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, rest of Europe, and internationally.
