3 Swedish Stocks Estimated To Be Trading At 10.2% To 29.4% Below Intrinsic Value

In recent weeks, the European markets have experienced a downturn, with the pan-European STOXX Europe 600 Index falling by 1.80% as escalating conflicts in the Middle East have heightened investor caution. Amidst this broader market uncertainty, identifying stocks that are trading below their intrinsic value can provide potential opportunities for investors looking to capitalize on undervalued assets. In Sweden, finding such stocks involves assessing those that may be overlooked due to current market sentiments but possess strong fundamentals and growth potential.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
CTT Systems (OM:CTT)	SEK266.00	SEK492.57	46%
Concentric (OM:COIC)	SEK216.00	SEK405.97	46.8%
Biotage (OM:BIOT)	SEK184.10	SEK363.42	49.3%
Lindab International (OM:LIAB)	SEK277.80	SEK528.93	47.5%
Nolato (OM:NOLA B)	SEK53.00	SEK98.99	46.5%
Tourn International (OM:TOURN)	SEK8.60	SEK16.46	47.7%
Mentice (OM:MNTC)	SEK26.90	SEK50.96	47.2%
Nexam Chemical Holding (OM:NEXAM)	SEK4.29	SEK7.94	46%
MilDef Group (OM:MILDEF)	SEK85.30	SEK160.43	46.8%
Lyko Group (OM:LYKO A)	SEK117.80	SEK217.64	45.9%

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

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

Catella (OM:CAT B)

Overview: Catella AB (publ) is a real estate investment firm with a market cap of SEK2.62 billion.

Operations: Catella AB's revenue is primarily derived from three segments: Corporate Finance (SEK422 million), Investment Management (SEK1.02 billion), and Principal Investments (SEK491 million).

Estimated Discount To Fair Value: 10.2%

Catella AB is trading at SEK 29.6, slightly below its estimated fair value of SEK 32.98, suggesting it may be undervalued based on cash flows. Despite a challenging financial period with a net loss of SEK 33 million in Q2 2024 and a weak dividend coverage, Catella's revenue growth forecast (13.3% annually) surpasses the Swedish market average. Recent leadership changes and fixed-income offerings totaling SEK 600 million could impact future performance and strategic direction.

• Our comprehensive growth report raises the possibility that Catella is poised for substantial financial growth.
• Delve into the full analysis health report here for a deeper understanding of Catella.

CellaVision (OM:CEVI)

Overview: CellaVision AB (publ) develops and sells instruments, software, and reagents for blood and body fluids analysis in Sweden and internationally, with a market cap of SEK7.07 billion.

Operations: The company's revenue is primarily derived from its Automated Microscopy Systems and Reagents in the field of Hematology, amounting to SEK726.40 million.

Estimated Discount To Fair Value: 18.6%

CellaVision is trading at SEK 296.5, below its estimated fair value of SEK 364.19, highlighting potential undervaluation based on cash flows. Recent earnings reports show increased sales and net income for Q2 2024, with sales reaching SEK 187.79 million and net income at SEK 38.55 million. Revenue growth is forecast to outpace the Swedish market at 13.1% annually, while earnings are expected to grow significantly by over 20% per year in the coming years.

• Upon reviewing our latest growth report, CellaVision's projected financial performance appears quite optimistic.
• Click here to discover the nuances of CellaVision with our detailed financial health report.

Paradox Interactive (OM:PDX)

Overview: Paradox Interactive AB (publ) develops and publishes strategy and management games for PC and consoles across various global regions, with a market cap of approximately SEK19.46 billion.

Operations: The company's revenue segment includes Computer Graphics, generating SEK2.48 billion.

Estimated Discount To Fair Value: 29.4%

Paradox Interactive is trading at SEK 184.2, significantly below its estimated fair value of SEK 260.94, suggesting undervaluation based on cash flows. Despite recent earnings showing a decline in sales and net income for Q2 2024, the company's earnings are projected to grow substantially by over 40% annually, outpacing the Swedish market's average. However, profit margins have decreased from last year, and dividends remain inadequately covered by earnings.

• In light of our recent growth report, it seems possible that Paradox Interactive's financial performance will exceed current levels.
• Get an in-depth perspective on Paradox Interactive's balance sheet by reading our health report here.

Key Takeaways

• Investigate our full lineup of 43 Undervalued Swedish Stocks Based On Cash Flows right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Looking For Alternative Opportunities?

• 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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