Stock Analysis

Undiscovered Gems in Sweden to Explore October 2024

OM:CLA B
Source: Shutterstock

As global markets grapple with geopolitical tensions and economic shifts, the pan-European STOXX Europe 600 Index recently ended lower due to escalating conflicts in the Middle East, reflecting a cautious investor sentiment. In this climate of uncertainty, identifying promising small-cap stocks in Sweden can offer unique opportunities for growth as these companies often possess innovative potential and resilience that may not be immediately apparent to broader market participants.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
SoftronicNA3.58%7.41%★★★★★★
BahnhofNA9.02%15.02%★★★★★★
FireflyNA16.04%32.29%★★★★★★
AB TractionNA5.38%5.19%★★★★★★
AQ Group7.30%14.89%22.26%★★★★★★
SvolderNA-22.68%-24.17%★★★★★★
Byggmästare Anders J Ahlström HoldingNA30.31%-9.00%★★★★★★
CreadesNA-28.54%-27.09%★★★★★★
LincNA56.01%0.54%★★★★★★
Solid FörsäkringsaktiebolagNA7.64%28.44%★★★★☆☆

Click here to see the full list of 56 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Bonesupport Holding (OM:BONEX)

Simply Wall St Value Rating: ★★★★★★

Overview: Bonesupport Holding AB (publ) is an orthobiologics company that develops and commercializes injectable bio-ceramic bone graft substitutes across Europe, North America, and internationally, with a market cap of SEK20.41 billion.

Operations: Bonesupport generates revenue primarily from its pharmaceuticals segment, amounting to SEK735.16 million. The company's financial performance is highlighted by a focus on this core revenue stream.

Bonesupport Holding, a dynamic player in the biotech arena, recently turned profitable and is trading slightly below its fair value. The company showcases high-quality earnings with significant non-cash components. Recent highlights include a 31% forecasted annual earnings growth and no debt burden over the past five years. Notably, the SOLARIO study demonstrated that their products can drastically cut antibiotic use while maintaining infection control. However, recent insider selling may warrant attention from potential investors.

OM:BONEX Debt to Equity as at Oct 2024
OM:BONEX Debt to Equity as at Oct 2024

Cloetta (OM:CLA B)

Simply Wall St Value Rating: ★★★★★☆

Overview: Cloetta AB (publ) is a confectionery company with a market capitalization of approximately SEK7.21 billion.

Operations: Cloetta generates revenue primarily from packaged branded goods and candy not packed in small bags, with sales figures of SEK6.24 billion and SEK2.22 billion, respectively.

Cloetta, a notable player in the confectionery sector, has seen its earnings grow by 29.8% over the past year, surpassing industry growth of 26%. Trading at 16.9% below estimated fair value, it offers potential upside for investors. The company reported SEK 4.13 billion in sales for the first half of 2024 with net income rising to SEK 189 million from SEK 138 million last year. Despite significant insider selling recently, Cloetta's debt to equity ratio improved from 69.4% to a satisfactory level of 35.7%.

OM:CLA B Debt to Equity as at Oct 2024
OM:CLA B Debt to Equity as at Oct 2024

TF Bank (OM:TFBANK)

Simply Wall St Value Rating: ★★★★☆☆

Overview: TF Bank AB (publ) is a digital bank offering consumer banking services and e-commerce solutions through its proprietary IT platform, with a market cap of SEK5.96 billion.

Operations: TF Bank generates revenue primarily from three segments: Credit Cards (SEK 511.24 million), Consumer Lending (SEK 607.24 million), and Ecommerce Solutions excluding Credit Cards (SEK 363.28 million).

TF Bank, a nimble player in Sweden's financial scene, showcases high-quality earnings and a low bad loan allowance at 62%, though it grapples with a high level of bad loans at 10.6%. With total assets of SEK24.1B and equity of SEK2.4B, the bank relies on low-risk funding sources for 95% of its liabilities. Recent issuance of SEK100M in subordinated bonds aims to optimize capital structure while establishing Rediem Capital AB to tackle non-performing loans signals strategic growth moves.

OM:TFBANK Earnings and Revenue Growth as at Oct 2024
OM:TFBANK Earnings and Revenue Growth as at Oct 2024

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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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