Spotlighting Sweden's Undiscovered Gems This September 2024

As European inflation nears the central bank's target and economic sentiment shows signs of improvement, Sweden's stock market is poised for potential opportunities. In this environment, identifying stocks with strong fundamentals and growth prospects becomes crucial for investors looking to capitalize on emerging trends.

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	15.90%	31.36%	★★★★★★
Creades	NA	-28.54%	-27.09%	★★★★★★
AQ Group	7.30%	14.89%	22.26%	★★★★★★
Byggmästare Anders J Ahlström Holding	NA	33.57%	-9.00%	★★★★★★
Linc	NA	56.01%	0.54%	★★★★★★
Solid Försäkringsaktiebolag	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's a peek at a few of the choices from the screener.

Biotage (OM:BIOT)

Simply Wall St Value Rating: ★★★★★★

Overview: Biotage AB (publ) offers solutions and products for drug discovery and development, analytical testing, and water and environmental testing, with a market cap of SEK15.79 billion.

Operations: Biotage AB (publ) generates revenue primarily from its Healthcare Software segment, which contributed SEK 2.08 billion. The company's net profit margin is %.

Biotage, a Swedish life sciences firm, has shown impressive financial health with earnings growing 16.2% last year, outpacing its industry’s -13%. The company's debt to equity ratio improved from 19.2% to 4% over five years and interest payments are well covered by EBIT at 11.6x coverage. Recent earnings reports indicate sales of SEK 504 million for Q2-2024 compared to SEK 409 million in the previous year, reflecting robust performance and potential for future growth under new CEO Frederic Vanderhaegen starting September 2024.

• Click to explore a detailed breakdown of our findings in Biotage's health report.

• Assess Biotage's past performance with our detailed historical performance reports.

engcon (OM:ENGCON B)

Simply Wall St Value Rating: ★★★★★☆

Overview: engcon AB (publ) designs, produces, and sells excavator tools across various international markets and has a market cap of SEK18.34 billion.

Operations: The company generates revenue primarily from its Construction Machinery & Equipment segment, amounting to SEK 1.54 billion. The net profit margin is notable at 13.5%.

engcon, a notable player in the machinery sector, reported net income of SEK 55 million for Q2 2024, down from SEK 83 million the previous year. Sales also dipped to SEK 450 million from SEK 508 million. Despite these challenges, EBIT covers interest payments by a substantial margin of 20.4x. The company boasts high-quality earnings and a satisfactory net debt to equity ratio of 8.5%. Future growth is anticipated with earnings forecasted to rise by nearly 44% annually.

• Unlock comprehensive insights into our analysis of engcon stock in this health report.

• Evaluate engcon's historical performance by accessing our past performance report.

ITAB Shop Concept (OM:ITAB)

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in solution design, customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores with a market cap of SEK5.74 billion.

Operations: ITAB generates revenue primarily through solution design, customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores. The company has a market cap of SEK5.74 billion.

ITAB Shop Concept has shown impressive growth, with earnings up 56.7% over the past year and a net debt to equity ratio now at 8.8%, down from 137.6% in five years. Trading at 18.1% below its estimated fair value, ITAB also boasts high-quality earnings and solid interest coverage (21x EBIT). Recently, it secured a EUR 22 million contract for shopfitting solutions in the UK and repurchased shares worth SEK 50 million, enhancing shareholder value.

• Navigate through the intricacies of ITAB Shop Concept with our comprehensive health report here.

• Explore historical data to track ITAB Shop Concept's performance over time in our Past section.

Seize The Opportunity

• Embark on your investment journey to our 54 Swedish Undiscovered Gems With Strong Fundamentals selection here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Seeking Other Investments?

• 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.

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