Cloetta And 2 Other Undiscovered Gems In Sweden To Watch

In recent weeks, global markets have experienced significant volatility, with small-cap indices like the Russell 2000 pulling back sharply. Amidst this turbulence, the Swedish market offers intriguing opportunities for investors seeking hidden gems. Identifying promising stocks in such a climate often involves looking beyond immediate market sentiment to find companies with solid fundamentals and growth potential. In this article, we explore Cloetta and two other undiscovered gems in Sweden that warrant attention.

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%	★★★★★★
Karnell Group	44.29%	22.04%	39.45%	★★★★★☆

Click here to see the full list of 52 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Cloetta (OM:CLA B)

Simply Wall St Value Rating: ★★★★★☆

Overview: Cloetta AB (publ) operates as a confectionary company with a market cap of approximately SEK6.54 billion.

Operations: Cloetta AB (publ) generates revenue primarily from packaged branded goods (SEK6.24 billion) and candy not packed in small bags (SEK2.22 billion).

Cloetta's earnings growth of 29.8% over the past year outpaced the Food industry's 17.9%, highlighting its strong performance. The company reported Q2 sales of SEK 2,038 million and net income of SEK 82 million, up from SEK 73 million a year ago. With a net debt to equity ratio at a satisfactory 35.7%, Cloetta also traded at nearly 25% below our fair value estimate, presenting an attractive valuation opportunity in the market.

• Unlock comprehensive insights into our analysis of Cloetta stock in this health report.

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

Rederiaktiebolaget Gotland (OM:GOTL A)

Simply Wall St Value Rating: ★★★★★★

Overview: Rederiaktiebolaget Gotland (publ), along with its subsidiaries, operates as a passenger and freight shipping company in Sweden, with a market cap of SEK5.56 billion.

Operations: Gotland generates revenue primarily from passenger and freight shipping services in Sweden. The company has a market cap of SEK5.56 billion.

Rederiaktiebolaget Gotland (Gotland) has shown significant progress, with earnings surging by 65.8% over the past year and outperforming the Shipping industry, which saw a -4.2% growth. The company reported first-quarter sales of SEK 384.9 million, up from SEK 362.9 million last year, and net income of SEK 37.2 million compared to a net loss of SEK 70 million previously. Notably debt-free now versus a debt-to-equity ratio of 44.4% five years ago, Gotland also trades at an attractive valuation—72.2% below its estimated fair value—indicating potential for future gains in this small-cap stock.

• Get an in-depth perspective on Rederiaktiebolaget Gotland's performance by reading our health report here.

• Understand Rederiaktiebolaget Gotland's track record by examining our Past report.

Scandi Standard (OM:SCST)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Scandi Standard AB (publ) produces and sells chilled, frozen, and ready-to-eat chicken products across various countries including Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, and internationally; it has a market cap of approximately SEK5.29 billion.

Operations: Scandi Standard AB (publ) generates revenue primarily from its Ready-To-Cook segment (SEK9.70 billion) and Ready-To-Eat segment (SEK2.61 billion).

Scandi Standard's debt to equity ratio has impressively reduced from 121.8% to 61.4% over the past five years, though it remains high at 59.7%. The company repurchased shares in the latest year, reflecting confidence in its financial health. Despite not outperforming the food industry with a 14.6% earnings growth last year, Scandi Standard's interest payments are well covered by EBIT at a ratio of 3.5x.

• Click here and access our complete health analysis report to understand the dynamics of Scandi Standard.

• Explore historical data to track Scandi Standard's performance over time in our Past section.

Where To Now?

• Click here to access our complete index of 52 Swedish Undiscovered Gems With Strong Fundamentals.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready To Venture Into Other Investment Styles?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com