As global markets experience fluctuations, Sweden's small-cap stocks are drawing attention with the Russell 2000 Index recently marking a significant gain of 6.00%. This surge highlights a growing investor interest in smaller companies amid broader economic shifts and inflationary adjustments. In this context, exploring lesser-known Swedish stocks could uncover potential opportunities for investors looking to diversify and capitalize on unique market dynamics in July 2024.
Top 10 Undiscovered Gems With Strong Fundamentals In Sweden
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Duni | 29.33% | 10.78% | 22.98% | ★★★★★★ |
| Softronic | NA | 3.42% | 7.64% | ★★★★★★ |
| Bahnhof | NA | 9.47% | 15.07% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Karnell Group | 44.29% | 22.04% | 39.45% | ★★★★★☆ |
| Solid Försäkringsaktiebolag | NA | 4.38% | 29.89% | ★★★★☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Biotage (OM:BIOT)
Simply Wall St Value Rating: ★★★★★★
Overview: Biotage AB (publ) specializes in solutions and products for drug discovery and development, analytical testing, as well as water and environmental testing, with a market capitalization of SEK 15.51 billion.
Operations: The company generates revenue through the sale of its products and services, achieving a gross profit margin of 62.73% as of the latest reporting period in 2024. Operating expenses for the same period were SEK 932 million, reflecting costs associated with sales, marketing, research and development, and general administrative activities.
Biotage, a notable player in the Life Sciences sector, has shown robust financial health and growth prospects. With earnings growth of 16.2% over the past year surpassing industry averages, Biotage's strategic position is further solidified by a significant reduction in its debt-to-equity ratio from 19.2% to 4%. Additionally, trading at 39.7% below its estimated fair value suggests potential for appreciation. Recent reports indicate strong performance with second-quarter sales rising to SEK 504 million from SEK 409 million the previous year, accompanied by an increase in net income to SEK 48 million from SEK 34 million.
- Get an in-depth perspective on Biotage's performance by reading our health report here.
Explore historical data to track Biotage's performance over time in our Past section.
Biotage (OM:BIOT)
Simply Wall St Value Rating: ★★★★★★
Overview: Biotage AB (publ) specializes in solutions and products for drug discovery and development, analytical testing, as well as water and environmental testing, with a market capitalization of SEK 15.51 billion.
Operations: The company generates revenue through the sale of its products and services, achieving a gross profit margin of 62.73% as of the latest reporting period in 2024. Operating expenses for the same period were SEK 932 million, reflecting costs associated with sales, marketing, research and development, and general administrative activities.
Biotage, a notable player in the Life Sciences sector, has shown robust financial health and growth prospects. With earnings growth of 16.2% over the past year surpassing industry averages, Biotage's strategic position is further solidified by a significant reduction in its debt-to-equity ratio from 19.2% to 4%. Additionally, trading at 39.7% below its estimated fair value suggests potential for appreciation. Recent reports indicate strong performance with second-quarter sales rising to SEK 504 million from SEK 409 million the previous year, accompanied by an increase in net income to SEK 48 million from SEK 34 million.
- Get an in-depth perspective on Biotage's performance by reading our health report here.
Explore historical data to track Biotage's performance over time in our Past section.
TF Bank (OM:TFBANK)
Simply Wall St Value Rating: ★★★★☆☆
Overview: TF Bank AB (publ) is a digital bank that offers consumer banking services and e-commerce solutions via its proprietary IT platform, with a market capitalization of SEK 5.76 billion.
Operations: TF Bank generates its revenue primarily through consumer lending, credit card services, and ecommerce solutions, with respective revenues of SEK 607.24 million, SEK 511.24 million, and SEK 363.28 million. The company consistently achieves a gross profit margin of 100%, reflecting its effective cost management in the absence of cost of goods sold (COGS).
TF Bank, a lesser-known Swedish entity, stands out for its robust financial health and potential growth. With assets totaling SEK 24.1B and equity of SEK 2.4B, the bank maintains a high level of bad loans at 10.6%, yet it has managed an allowance for these at only 62%. Despite not outpacing the industry with a year-over-year earnings growth of 21.3% against an industry average of 21.9%, TF Bank is poised for significant future growth with earnings expected to surge by nearly 27.76% annually.
- Take a closer look at TF Bank's potential here in our health report.
Examine TF Bank's past performance report to understand how it has performed in the past.
TF Bank (OM:TFBANK)
Simply Wall St Value Rating: ★★★★☆☆
Overview: TF Bank AB (publ) is a digital bank that offers consumer banking services and e-commerce solutions via its proprietary IT platform, with a market capitalization of SEK 5.76 billion.
Operations: TF Bank generates its revenue primarily through consumer lending, credit card services, and ecommerce solutions, with respective revenues of SEK 607.24 million, SEK 511.24 million, and SEK 363.28 million. The company consistently achieves a gross profit margin of 100%, reflecting its effective cost management in the absence of cost of goods sold (COGS).
TF Bank, a lesser-known Swedish entity, stands out for its robust financial health and potential growth. With assets totaling SEK 24.1B and equity of SEK 2.4B, the bank maintains a high level of bad loans at 10.6%, yet it has managed an allowance for these at only 62%. Despite not outpacing the industry with a year-over-year earnings growth of 21.3% against an industry average of 21.9%, TF Bank is poised for significant future growth with earnings expected to surge by nearly 27.76% annually.
- Take a closer look at TF Bank's potential here in our health report.
Examine TF Bank's past performance report to understand how it has performed in the past.
AB Traction (OM:TRAC B)
Simply Wall St Value Rating: ★★★★★★
Overview: AB Traction is a private equity firm that focuses on a range of investment strategies including distressed assets, middle market, and mature company investments, with a market capitalization of SEK 3.85 billion.
Operations: The company generates revenue through direct sales, achieving a consistent gross profit margin of 100% across multiple reporting periods. General and administrative expenses are the main operational costs incurred by the business.
AB Traction, a lesser-known yet promising entity in Sweden's investment landscape, has demonstrated robust performance with a 119.7% earnings growth over the past year, significantly outpacing the Capital Markets industry's 8.9% growth. The company is debt-free and maintains high-quality earnings, ensuring financial stability without the burden of interest payments. Recently, AB Traction reported a substantial turnaround with a net income of SEK 215.5 million for Q2 2024 compared to a net loss in the previous year, highlighting its potential as an undiscovered gem in the market.
AB Traction (OM:TRAC B)
Simply Wall St Value Rating: ★★★★★★
Overview: AB Traction is a private equity firm that focuses on a range of investment strategies including distressed assets, middle market, and mature company investments, with a market capitalization of SEK 3.85 billion.
Operations: The company generates revenue through direct sales, achieving a consistent gross profit margin of 100% across multiple reporting periods. General and administrative expenses are the main operational costs incurred by the business.
AB Traction, a lesser-known yet promising entity in Sweden's investment landscape, has demonstrated robust performance with a 119.7% earnings growth over the past year, significantly outpacing the Capital Markets industry's 8.9% growth. The company is debt-free and maintains high-quality earnings, ensuring financial stability without the burden of interest payments. Recently, AB Traction reported a substantial turnaround with a net income of SEK 215.5 million for Q2 2024 compared to a net loss in the previous year, highlighting its potential as an undiscovered gem in the market.
Where To Now?
- Dive into all 55 of the Swedish Undiscovered Gems With Strong Fundamentals we have identified here.
- Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
- Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
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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