Billerud And 2 Other Swedish Stocks Trading Below Intrinsic Value Estimates

The Swedish stock market has shown resilience despite global economic fluctuations, with the pan-European STOXX Europe 600 Index reaching record highs amid slower inflation rates. As investors seek value in a fluctuating economy, identifying stocks trading below their intrinsic value becomes crucial. In this context, Billerud and two other Swedish stocks present compelling opportunities for investors looking to capitalize on undervalued assets.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
Sleep Cycle (OM:SLEEP)	SEK41.90	SEK80.17	47.7%
QleanAir (OM:QAIR)	SEK27.00	SEK51.63	47.7%
Svedbergs Group (OM:SVED B)	SEK45.30	SEK89.98	49.7%
Lindab International (OM:LIAB)	SEK267.00	SEK524.39	49.1%
Dometic Group (OM:DOM)	SEK69.85	SEK131.29	46.8%
Serstech (OM:SERT)	SEK1.34	SEK2.63	49%
Candles Scandinavia (OM:CANDLE B)	SEK20.40	SEK37.98	46.3%
Tourn International (OM:TOURN)	SEK8.98	SEK16.47	45.5%
Svedbergs Group (OM:SVED BTA B)	SEK36.30	SEK65.51	44.6%
MilDef Group (OM:MILDEF)	SEK82.20	SEK161.07	49%

Click here to see the full list of 42 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Billerud (OM:BILL)

Overview: Billerud AB (publ) is a global provider of paper and packaging materials with a market cap of SEK26.84 billion.

Operations: Billerud generates revenue primarily from Region Europe (SEK27.08 billion), Region North America (SEK11.35 billion), and Solution & Other segments excluding currency hedging effects (SEK2.77 billion).

Estimated Discount To Fair Value: 30.4%

Billerud is trading at SEK 107.9, significantly below its estimated fair value of SEK 155.04, making it an undervalued stock based on discounted cash flows. The company's earnings are forecast to grow substantially at 31.74% per year, outpacing the Swedish market's growth rate of 15.3%. Recent Q2 results showed a net income turnaround to SEK 63 million from a loss of SEK 481 million a year ago, reinforcing its improving financial health.

• Upon reviewing our latest growth report, Billerud's projected financial performance appears quite optimistic.
• Get an in-depth perspective on Billerud's balance sheet by reading our health report here.

MilDef Group (OM:MILDEF)

Overview: MilDef Group AB (publ) develops, manufactures, and sells rugged IT solutions and special electronics primarily for the security and defense sectors, with a market cap of SEK3.28 billion.

Operations: The company's revenue from Computer Hardware amounts to SEK1.11 billion.

Estimated Discount To Fair Value: 49%

MilDef Group is trading at SEK 82.2, well below its estimated fair value of SEK 161.07, indicating significant undervaluation based on discounted cash flows. The company's earnings are projected to grow at an impressive rate of 47% annually, far outpacing the Swedish market's growth rate of 15.3%. Recent orders worth SEK 72 million and SEK 18 million from NDMA and BAE Systems Bofors respectively bolster its revenue outlook for the coming years.

• Our growth report here indicates MilDef Group may be poised for an improving outlook.
• Click here to discover the nuances of MilDef Group with our detailed financial health report.

Nyab (OM:NYAB)

Overview: Nyab AB (publ) offers engineering, construction, and maintenance services for energy, infrastructure, and industrial projects in Finland and Sweden with a market cap of SEK4.75 billion.

Operations: Nyab AB's revenue from heavy construction services amounts to €308.95 million.

Estimated Discount To Fair Value: 33.9%

Nyab is trading at SEK 6.68, significantly below its estimated fair value of SEK 10.1, indicating it is undervalued based on discounted cash flows. Despite a volatile share price and declining profit margins (2.9% vs. 7.4% last year), Nyab's earnings are forecast to grow 24.4% annually over the next three years, outpacing the Swedish market's growth rate of 15.3%. Recent contracts worth over SEK 1 billion bolster its revenue outlook and order backlog for future periods.

• According our earnings growth report, there's an indication that Nyab might be ready to expand.
• Click to explore a detailed breakdown of our findings in Nyab's balance sheet health report.

Key Takeaways

• Get an in-depth perspective on all 42 Undervalued Swedish Stocks Based On Cash Flows by using our screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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