3 Undervalued Swedish Stocks With Intrinsic Discounts Ranging From 39.8% To 49.1%

Amidst a landscape of shifting global market dynamics, Sweden's stock market presents intriguing opportunities for investors seeking value. Recent trends indicate a pivot towards smaller-cap and value stocks internationally, setting the stage to spotlight undervalued Swedish equities that may offer significant intrinsic discounts.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
Gränges (OM:GRNG)	SEK135.70	SEK260.74	48%
Husqvarna (OM:HUSQ B)	SEK74.60	SEK143.06	47.9%
Nordic Waterproofing Holding (OM:NWG)	SEK160.60	SEK313.02	48.7%
Scandi Standard (OM:SCST)	SEK75.90	SEK145.57	47.9%
Volati (OM:VOLO)	SEK120.00	SEK235.69	49.1%
RaySearch Laboratories (OM:RAY B)	SEK139.80	SEK277.78	49.7%
TF Bank (OM:TFBANK)	SEK272.00	SEK518.96	47.6%
Cavotec (OM:CCC)	SEK20.10	SEK37.46	46.3%
Humble Group (OM:HUMBLE)	SEK10.00	SEK18.64	46.3%
Bactiguard Holding (OM:BACTI B)	SEK70.60	SEK132.10	46.6%

Click here to see the full list of 47 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Dometic Group (OM:DOM)

Overview: Dometic Group AB (publ) specializes in mobile living solutions including food and beverage, climate, power and control, with a market capitalization of approximately SEK 23.00 billion.

Operations: Dometic's revenue is derived from various segments, including Marine (SEK 6.25 billion), Global Ventures (SEK 5.88 billion), and Land Vehicles across APAC (SEK 4.52 billion), EMEA (SEK 8.11 billion), and the Americas (SEK 5.00 billion).

Estimated Discount To Fair Value: 39.8%

Dometic Group, trading at SEK72, is recognized as undervalued based on discounted cash flows, with a valuation gap of nearly 40% below the estimated fair value of SEK119.7. Despite recent earnings declines—Q2 sales dropped to SEK 7.66 billion from SEK 8.33 billion year-over-year—the company is poised for robust earnings growth, projected at an annual rate of 26.76%. However, challenges include a high debt level and an unstable dividend track record, alongside modest expected revenue growth at 2.8% annually.

• The analysis detailed in our Dometic Group growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Dometic Group.

Lindab International (OM:LIAB)

Overview: Lindab International AB (publ) specializes in manufacturing and selling products and solutions for ventilation systems across Europe, with a market capitalization of approximately SEK 19.997 billion.

Operations: The company generates revenue primarily through two segments: Profile Systems, which brought in SEK 3.28 billion, and Ventilation Systems, contributing SEK 9.95 billion.

Estimated Discount To Fair Value: 44.3%

Lindab International, priced at SEK 260.2, appears undervalued with its market price being significantly lower than the estimated fair value of SEK 467.52. Despite recent fluctuations in earnings and an unstable dividend history, Lindab is poised for substantial growth with earnings expected to increase notably over the next few years. The company’s revenue growth is projected to outpace the Swedish market average significantly, supporting a positive outlook on its financial health and potential for increased investor value.

• The growth report we've compiled suggests that Lindab International's future prospects could be on the up.
• Navigate through the intricacies of Lindab International with our comprehensive financial health report here.

Volati (OM:VOLO)

Overview: Volati AB is a private equity firm focused on growth capital, buyouts, and add-on acquisitions in mature and middle-market companies, with a market capitalization of approximately SEK 9.53 billion.

Operations: Volati's revenue is primarily generated through the Salix Group and Industry segments, contributing SEK 3.41 billion and SEK 3.32 billion respectively, along with the Ettiketto Group adding SEK 870 million.

Estimated Discount To Fair Value: 49.1%

Volati, trading at SEK 120, is significantly undervalued with a fair value estimate of SEK 235.69. Although its profit margins have decreased and it carries high debt levels, the company's earnings are expected to grow by 35.92% annually. Revenue growth projections also exceed the Swedish market average. Recent strategic acquisitions indicate potential for expansion despite a recent dip in operational cash flow and unstable dividends, suggesting room for cautious optimism in its financial strategy and market positioning.

• Our earnings growth report unveils the potential for significant increases in Volati's future results.
• Get an in-depth perspective on Volati's balance sheet by reading our health report here.

Next Steps

• Navigate through the entire inventory of 47 Undervalued Swedish Stocks Based On Cash Flows here.
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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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