Stock Analysis

CellaVision And 2 Swedish Stocks Estimated To Be Trading Below Intrinsic Value

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As global markets face heightened volatility and economic uncertainties, the Swedish stock market has also experienced fluctuations, with investors closely monitoring value opportunities amid broader market trends. In this environment, identifying stocks that are trading below their intrinsic value can be a prudent strategy for long-term growth.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

NameCurrent PriceFair Value (Est)Discount (Est)
CTT Systems (OM:CTT)SEK264.00SEK499.2347.1%
Stille (OM:STIL)SEK224.00SEK446.0349.8%
Paradox Interactive (OM:PDX)SEK141.10SEK261.8346.1%
Nolato (OM:NOLA B)SEK53.95SEK99.0745.5%
Dometic Group (OM:DOM)SEK68.40SEK132.5948.4%
Flexion Mobile (OM:FLEXM)SEK9.24SEK17.9548.5%
Serstech (OM:SERT)SEK1.49SEK2.6543.8%
Svedbergs Group (OM:SVED BTA B)SEK36.30SEK65.5144.6%
BHG Group (OM:BHG)SEK14.08SEK26.8147.5%
Wästbygg Gruppen (OM:WBGR B)SEK52.00SEK99.2247.6%

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

Let's take a closer look at a couple of our picks from the screened companies.

CellaVision (OM:CEVI)

Overview: CellaVision AB (publ) develops and sells instruments, software, and reagents for blood and body fluids analysis in Sweden and internationally, with a market cap of SEK5.83 billion.

Operations: CellaVision generates revenue primarily from automated microscopy systems and reagents in the field of hematology, amounting to SEK726.40 million.

Estimated Discount To Fair Value: 33.6%

CellaVision is trading at SEK244.5, significantly below its estimated fair value of SEK368.01, indicating it may be undervalued based on cash flows. The company’s earnings are forecast to grow 24.1% annually, outpacing the Swedish market's 15.8%. Recent earnings reports show a strong performance with Q2 sales at SEK187.79 million and net income of SEK38.55 million, reflecting consistent growth from the previous year’s figures.

OM:CEVI Discounted Cash Flow as at Aug 2024

HMS Networks (OM:HMS)

Overview: HMS Networks AB (publ) provides products that enable industrial equipment to communicate and share information globally, with a market cap of SEK18.90 billion.

Operations: HMS Networks AB (publ) generates revenue primarily from its Wireless Communications Equipment segment, which accounted for SEK3.01 billion.

Estimated Discount To Fair Value: 15.1%

HMS Networks is trading at SEK376.6, below its estimated fair value of SEK443.61. Despite a high level of debt and recent shareholder dilution, HMS's earnings are forecast to grow significantly at 26.3% annually, outpacing the Swedish market's 15.8%. However, profit margins have decreased from 20.1% to 14%. Recent Q2 results show sales increased to SEK845 million from SEK703 million last year, though net income dropped to SEK34 million from SEK116 million.

OM:HMS Discounted Cash Flow as at Aug 2024

Mips (OM:MIPS)

Overview: Mips AB (publ) develops, manufactures, and sells helmet-based safety systems across North America, Europe, Sweden, Asia, and Australia with a market cap of SEK12.92 billion.

Operations: The company's revenue from Sporting Goods amounts to SEK383 million.

Estimated Discount To Fair Value: 16.3%

Mips AB reported strong Q2 2024 earnings, with sales rising to SEK133 million from SEK102 million a year ago and net income doubling to SEK40 million. The stock trades at SEK487.6, below its fair value estimate of SEK582.75, indicating potential undervaluation based on cash flows. Despite recent share price volatility, Mips's earnings are forecast to grow significantly at 51.1% annually over the next three years, outpacing the Swedish market's growth rate.

OM:MIPS Discounted Cash Flow as at Aug 2024

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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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