Stock Analysis
As global markets exhibit mixed responses with a notable pivot towards small-cap and value shares, Sweden's market landscape presents unique opportunities for investors exploring less conspicuous avenues. In light of these shifts, identifying stocks like BTS Group that potentially harmonize with current economic dynamics could offer intriguing prospects for those looking to diversify their portfolios.
Top 10 Undiscovered Gems With Strong Fundamentals In Sweden
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Bahnhof | NA | 9.47% | 15.07% | ★★★★★★ |
| Softronic | NA | 3.58% | 7.41% | ★★★★★★ |
| Duni | 29.33% | 10.78% | 22.98% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
We'll examine a selection from our screener results.
BTS Group (OM:BTS B)
Simply Wall St Value Rating: ★★★★★★
Overview: BTS Group AB (publ) is a professional services firm with a market capitalization of SEK 6.27 billion.
Operations: BTS Group generates its revenue primarily from three geographical segments: Europe, North America, and Other Markets, with significant contributions of SEK 584.99 million, SEK 1.47 billion, and SEK 796.95 million respectively. The company's operations involve substantial costs of goods sold (COGS) and operating expenses which consistently influence the net income figures reported each period. Notably, the net income margin has shown variability over the years but was recorded at approximately 7% in recent data from 2023-09-30. This margin reflects the balance between revenue generation across diverse markets and management of operational costs including non-operating expenses and depreciation & amortization charges which are recurrent financial obligations impacting profitability.
BTS Group, a lesser-known yet robust player in the Swedish market, has shown a significant earnings growth of 27.7% this past year, outpacing the Professional Services industry's decline of 1.4%. With its shares trading at 21.6% below estimated fair value and a debt-to-equity ratio improvement from 29.1% to 26.3%, the company presents an attractive valuation. Notably, BTS Group reported a strong first quarter with sales up to SEK 619 million from SEK 579 million year-over-year and net income more than doubling to SEK 53.3 million.
- Click here and access our complete health analysis report to understand the dynamics of BTS Group.
Explore historical data to track BTS Group's performance over time in our Past section.
engcon (OM:ENGCON B)
Simply Wall St Value Rating: ★★★★★☆
Overview: Engcon AB (publ) is a global company specializing in the design, production, and sale of excavator tools, operating across Sweden, Denmark, Norway, Finland, Europe broadly, North and South America, Japan, South Korea, Australia and New Zealand; it has a market capitalization of SEK 15.76 billion.
Operations: The company generates its revenue primarily through the sale of construction machinery and equipment, achieving a gross profit margin of 42.96% by the end of 2024. It manages substantial operational costs, including sales & marketing and R&D expenses which were SEK 268 million and SEK 51 million respectively in mid-2024, reflecting its focus on market expansion and innovation.
Engcon, a lesser-known Swedish machinery company, recently reported a challenging fiscal year with a 60.6% earnings drop, contrasting the industry's modest growth. Despite this downturn, their robust debt management is evident with a satisfactory net debt to equity ratio of 8.5% and interest payments well-covered by EBIT at 20.4 times. Engcon's strategic adjustments include appointing Anders Smith as COO to bolster expansion efforts, signaling proactive leadership amidst financial recalibrations. Their commitment to shareholder returns remains strong, evidenced by a recent dividend distribution totaling SEK 0.94 per share for the year.
- Navigate through the intricacies of engcon with our comprehensive health report here.
Evaluate engcon's historical performance by accessing our past performance report.
Scandi Standard (OM:SCST)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Scandi Standard AB (publ) is a producer and distributor of chilled, frozen, and ready-to-eat chicken products across Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom and other European markets with a market capitalization of approximately SEK 5.11 billion.
Operations: The company generates its primary revenue from the sale of ready-to-cook and ready-to-eat products, with significant contributions from other unspecified segments. It consistently incurs costs related to goods sold, operating expenses, and non-operating expenses while achieving a gross profit margin that has shown fluctuations over recent periods.
Scandi Standard, a lesser-highlighted Swedish gem, is trading at 46.3% below its estimated fair value, suggesting potential for significant upside. Despite a high net debt to equity ratio of 59.7%, interest payments are well-covered by EBIT at 3.5 times coverage. With earnings forecasted to grow by 20.39% annually and recent strategic bank financing aimed at supporting growth initiatives, the company is positioning itself for robust future performance while maintaining high-quality earnings from past operations.
- Get an in-depth perspective on Scandi Standard's performance by reading our health report here.
Understand Scandi Standard's track record by examining our Past report.
Seize The Opportunity
- Reveal the 55 hidden gems among our Swedish Undiscovered Gems With Strong Fundamentals screener with a single click here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
Searching for a Fresh Perspective?
- 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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About OM:ENGCON B
engcon
Engages in the design, production, and sale of excavator tools in Sweden, Denmark, Norway, Finland, rest of Europe, North and South America, Japan, South Korea, Australia, New Zealand, and internationally.
