Stock Analysis

Dometic Group And 2 Other Stocks That May Be Undervalued On The Swedish Exchange

Published

The Swedish stock market has recently been influenced by global economic uncertainties, with major indices experiencing fluctuations due to weak U.S. economic data and concerns over growth. Despite this volatility, opportunities may exist for discerning investors seeking undervalued stocks. In such a climate, identifying undervalued stocks involves looking for companies that are fundamentally strong but trading below their intrinsic value due to broader market conditions rather than company-specific issues.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

NameCurrent PriceFair Value (Est)Discount (Est)
CTT Systems (OM:CTT)SEK272.00SEK498.6745.5%
Scandi Standard (OM:SCST)SEK84.00SEK161.9748.1%
Stille (OM:STIL)SEK225.00SEK445.6149.5%
Paradox Interactive (OM:PDX)SEK140.40SEK262.4246.5%
Litium (OM:LITI)SEK8.32SEK16.5749.8%
Nolato (OM:NOLA B)SEK54.10SEK99.2845.5%
Dometic Group (OM:DOM)SEK69.70SEK134.2548.1%
Flexion Mobile (OM:FLEXM)SEK9.40SEK17.8847.4%
Tourn International (OM:TOURN)SEK8.88SEK16.4946.1%
BHG Group (OM:BHG)SEK14.78SEK27.3345.9%

Click here to see the full list of 43 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Dometic Group (OM:DOM)

Overview: Dometic Group AB (publ) offers mobile living solutions focused on food and beverage, climate, power and control, among other applications, with a market cap of approximately SEK22.27 billion.

Operations: The company's revenue segments are Marine (SEK6.25 billion), Global Ventures (SEK5.88 billion), Land Vehicles APAC (SEK4.52 billion), Land Vehicles EMEA (SEK8.11 billion), and Land Vehicles Americas (SEK5.00 billion).

Estimated Discount To Fair Value: 48.1%

Dometic Group is trading at SEK 69.7, significantly below its estimated fair value of SEK 134.25, suggesting it may be undervalued based on discounted cash flows. Despite a high level of debt and an unstable dividend track record, Dometic's earnings are forecast to grow significantly at 26.76% per year over the next three years, outpacing the Swedish market's growth rate of 15.8%. Recent earnings reports show a decline in sales and net income compared to last year.

OM:DOM Discounted Cash Flow as at Aug 2024

EQT (OM:EQT)

Overview: EQT AB (publ) is a global private equity firm specializing in private capital and real asset segments, with a market cap of SEK369.76 billion.

Operations: The company's revenue segments include €37.20 million from Central, €878.70 million from Real Assets, and €1.28 billion from Private Capital.

Estimated Discount To Fair Value: 11.1%

EQT AB appears undervalued based on discounted cash flows, trading at SEK 312.7 against an estimated fair value of SEK 351.55. The company reported strong earnings growth, with net income rising from €120 million to €282 million year-over-year. Despite significant insider selling and large one-off items impacting results, EQT's earnings are forecast to grow significantly over the next three years, outpacing the Swedish market. Recent buyback transactions and M&A activities further highlight its strategic capital management efforts.

OM:EQT Discounted Cash Flow as at Aug 2024

Xvivo Perfusion (OM:XVIVO)

Overview: Xvivo Perfusion AB (publ) is a medical technology company that develops and markets machines and perfusion solutions for assessing and maintaining organs for transplantation, with a market cap of SEK16.16 billion.

Operations: Xvivo Perfusion AB's revenue segments include Services (SEK83.39 million), Thoracic (SEK451.49 million), and Abdominal (SEK163.85 million).

Estimated Discount To Fair Value: 37.5%

Xvivo Perfusion AB reported strong earnings for the second quarter of 2024, with net income rising to SEK 27.19 million from SEK 6.89 million a year ago, and sales increasing to SEK 210.35 million from SEK 154.57 million. The company is trading at SEK513, significantly below its estimated fair value of SEK821.26, making it highly undervalued based on discounted cash flows. Earnings and revenue are forecast to grow significantly faster than the Swedish market over the next three years despite past shareholder dilution.

OM:XVIVO Discounted Cash Flow as at Aug 2024

Make It Happen

Interested In Other Possibilities?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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