Stock Analysis

3 Swedish Stocks Estimated To Be Trading At Discounts Of Up To 40.9%

OM:CEVI
Source: Shutterstock

As global markets navigate shifting economic landscapes, the Swedish market has been influenced by recent monetary policy adjustments from the European Central Bank, which have sparked optimism for further easing. In this context of potential economic support, identifying undervalued stocks can be a strategic move for investors seeking opportunities in Sweden's evolving financial environment.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

NameCurrent PriceFair Value (Est)Discount (Est)
Sleep Cycle (OM:SLEEP)SEK43.80SEK79.1344.7%
Svedbergs Group (OM:SVED B)SEK42.75SEK77.7245%
Getinge (OM:GETI B)SEK200.90SEK399.0149.7%
Truecaller (OM:TRUE B)SEK46.60SEK90.0148.2%
Nolato (OM:NOLA B)SEK52.45SEK103.3149.2%
Wall to Wall Group (OM:WTW A)SEK52.20SEK104.1649.9%
TF Bank (OM:TFBANK)SEK326.00SEK612.5046.8%
Mentice (OM:MNTC)SEK28.40SEK51.2744.6%
Svedbergs Group (OM:SVED BTA B)SEK36.30SEK65.5144.6%
Bactiguard Holding (OM:BACTI B)SEK45.00SEK85.4547.3%

Click here to see the full list of 49 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Betsson (OM:BETS B)

Overview: Betsson AB (publ) operates and manages online gaming businesses across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK38.45 billion.

Operations: The company's revenue segments include Casino at €605.50 million, Sportsbook at €402.30 million, and Other Products at €28.20 million.

Estimated Discount To Fair Value: 40.9%

Betsson AB is trading at SEK 138.94, significantly below its estimated fair value of SEK 235.23, indicating potential undervaluation based on cash flows. Despite a dividend yield of 5.31% not being well covered by free cash flows and recent shareholder dilution, the company shows promising growth prospects with earnings forecasted to grow faster than the Swedish market at 16.85% annually. Recent earnings reports show increased sales but slightly lower net income compared to last year.

OM:BETS B Discounted Cash Flow as at Oct 2024
OM:BETS B Discounted Cash Flow as at Oct 2024

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 approximately SEK6.67 billion.

Operations: The company generates revenue of SEK726.40 million from its automated microscopy systems and reagents in the field of hematology.

Estimated Discount To Fair Value: 12.4%

CellaVision is trading at SEK 279.5, slightly below its fair value of SEK 319.18, suggesting it may be undervalued based on cash flows. The company reported third-quarter sales of SEK 178.66 million and net income of SEK 31.11 million, both up from the previous year. Earnings are forecasted to grow significantly at 22.8% annually over the next three years, outpacing the Swedish market's growth rate, despite recent insider selling activity.

OM:CEVI Discounted Cash Flow as at Oct 2024
OM:CEVI Discounted Cash Flow as at Oct 2024

Ratos (OM:RATO B)

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 SEK11.10 billion.

Operations: Ratos generates revenue through its specialized activities in buyouts, turnarounds, add-on acquisitions, and middle market transactions.

Estimated Discount To Fair Value: 31.2%

Ratos, trading at SEK 33.38, is undervalued relative to its fair value estimate of SEK 48.55, and is priced attractively compared to industry peers. Despite a recent net loss of SEK 146 million for Q3, earnings are projected to grow significantly at 23.9% annually over the next three years, outpacing Swedish market growth rates. However, its return on equity is anticipated to remain low at 10.5%, and dividend stability remains uncertain due to an inconsistent track record.

OM:RATO B Discounted Cash Flow as at Oct 2024
OM:RATO B Discounted Cash Flow as at Oct 2024

Where To Now?

Contemplating Other Strategies?

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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