Momentum Group And 2 Other Undiscovered Gems In Sweden

As global markets grapple with economic uncertainties, the Swedish market has shown resilience, particularly in its small-cap segment. Despite broader market volatility, Sweden's unique economic landscape offers promising opportunities for investors seeking undiscovered gems. In this context, identifying stocks with strong fundamentals and growth potential becomes crucial. Momentum Group and two other lesser-known Swedish companies exemplify such opportunities amidst current market conditions.

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%	★★★★★★
Byggmästare Anders J Ahlström Holding	NA	30.31%	-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.

We're going to check out a few of the best picks from our screener tool.

Momentum Group (OM:MMGR B)

Simply Wall St Value Rating: ★★★★★☆

Overview: Momentum Group AB (publ) supplies industrial components, industrial services, and related services to the industrial sector with a market cap of SEK9.22 billion.

Operations: Momentum Group AB (publ) generates revenue primarily from industrial components and services, with a significant segment adjustment of SEK2.70 billion.

Momentum Group has shown impressive earnings growth of 13.3% over the past year, outpacing the Trade Distributors industry’s 1.3%. The company's net debt to equity ratio stands at a high 54.7%, but interest payments are well covered by EBIT with a coverage of 9x. Recent financial results for Q2 2024 revealed sales of SEK 773 million and net income of SEK 53 million, up from SEK 549 million and SEK 44 million respectively in the same period last year.

• Delve into the full analysis health report here for a deeper understanding of Momentum Group.

• Understand Momentum Group's track record by examining our Past report.

Ratos (OM:RATO B)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Ratos AB (publ) is a private equity firm that focuses on buyouts, turnarounds, add-on acquisitions, and middle market transactions with a market cap of approximately SEK11.19 billion.

Operations: Ratos generates revenue primarily from three segments: Consumer (SEK5.65 billion), Industry (SEK10.47 billion), and Construction & Services (SEK16.77 billion). The net profit margin for the company is a key metric to consider in evaluating its financial performance.

Ratos has shown consistent earnings growth of 34.1% annually over the past five years, with a net debt to equity ratio of 20.8%, which is considered satisfactory. Recent results for the second quarter of 2024 showed sales at SEK 9.11 billion, down from SEK 10 billion a year ago, but net income increased to SEK 608 million from SEK 586 million. The company’s debt to equity ratio improved significantly from 56.6% to 33% in five years, indicating prudent financial management and strategic focus on reducing leverage.

• Navigate through the intricacies of Ratos with our comprehensive health report here.

• Gain insights into Ratos' historical performance by reviewing our past performance report.

RaySearch Laboratories (OM:RAY B)

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 has a market cap of SEK5.64 billion.

RaySearch Laboratories, a niche player in the healthcare sector, has shown remarkable financial performance recently. With earnings growing by 187% over the past year and forecasted to grow 16.74% annually, RaySearch is outperforming its industry peers. The company is debt-free now compared to five years ago when its debt-to-equity ratio was 1.8%. Recent client wins include Iridium Network in Belgium and Connecticut Proton Therapy Center in the USA, highlighting RayCare’s robust adoption and strong market presence.

• Dive into the specifics of RaySearch Laboratories here with our thorough health report.

• Assess RaySearch Laboratories' past performance with our detailed historical performance reports.

Key Takeaways

• Get an in-depth perspective on all 54 Swedish Undiscovered Gems With Strong Fundamentals by using our screener here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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.

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