Undiscovered Gems in Sweden Worth Exploring October 2024

As the global markets react to China's robust stimulus measures and European hopes for interest rate cuts, Sweden's recent decision to lower its policy rate has sparked renewed interest in its small-cap sector. With the Riksbank cutting rates and potentially setting the stage for further reductions, investors are keenly observing how these economic shifts might uncover promising opportunities in lesser-known Swedish stocks. In this environment, identifying a good stock often involves looking at companies with strong fundamentals that can capitalize on favorable monetary policies and shifting market dynamics.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Softronic	NA	3.58%	7.41%	★★★★★★
Duni	29.33%	10.78%	22.98%	★★★★★★
Bahnhof	NA	9.02%	15.02%	★★★★★★
AB Traction	NA	5.38%	5.19%	★★★★★★
Firefly	NA	16.04%	32.29%	★★★★★★
AQ Group	7.30%	14.89%	22.26%	★★★★★★
Svolder	NA	-22.68%	-24.17%	★★★★★★
Byggmästare Anders J Ahlström Holding	NA	30.31%	-9.00%	★★★★★★
Creades	NA	-28.54%	-27.09%	★★★★★★
Linc	NA	56.01%	0.54%	★★★★★★

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

Below we spotlight a couple of our favorites from our exclusive screener.

Creades (OM:CRED A)

Simply Wall St Value Rating: ★★★★★★

Overview: Creades AB is a private equity and venture capital investment firm focusing on early to late-stage ventures, emerging growth, middle market, growth capital, and buyout investments with a market capitalization of SEK11.30 billion.

Operations: Creades generates revenue primarily from its investments in online retailers, amounting to SEK1.11 billion.

Creades, a Swedish financial player, showcases impressive growth with earnings surging by 129% over the past year, outpacing the industry average of 80%. Its price-to-earnings ratio stands attractively at 10.3x against the broader market's 23.4x. The company is debt-free and reported a notable turnaround in recent results; Q2 revenue reached SEK 833 million from a negative SEK 353 million last year, with net income at SEK 771 million compared to a loss previously.

• Click here to discover the nuances of Creades with our detailed analytical health report.

• Explore historical data to track Creades' performance over time in our Past section.

ITAB Shop Concept (OM:ITAB)

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in offering solution design, customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores with a market cap of approximately SEK6.95 billion.

Operations: Revenue for ITAB Shop Concept AB (publ) primarily comes from the Furniture & Fixtures segment, which generated SEK6.39 billion. The company's net profit margin has shown variability across reporting periods, reflecting fluctuations in profitability.

ITAB, a Swedish company, is making waves with impressive earnings growth of 56.7% over the past year, outpacing industry standards. Trading at 11.9% below its estimated fair value and boasting a satisfactory net debt to equity ratio of 8.8%, ITAB seems financially robust. Recent deals include a EUR 20 million shop-in-shop framework agreement across Europe and another EUR 22 million contract in the UK, highlighting its expanding market presence and strategic partnerships in retail solutions.

• Unlock comprehensive insights into our analysis of ITAB Shop Concept stock in this health report.

• Evaluate ITAB Shop Concept's historical performance by accessing our past performance report.

Rusta (OM:RUSTA)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Rusta AB (publ) is a retailer of home and leisure products operating in Sweden, Norway, Finland, and Germany with a market cap of SEK11.84 billion.

Operations: Rusta generates revenue primarily from its operations in Sweden, contributing SEK6.43 billion, followed by Norway and other markets with SEK2.39 billion and SEK2.41 billion respectively.

Rusta's earnings grew by 47.5% over the past year, significantly outpacing the Multiline Retail industry's -5%. The company trades at 70.5% below its estimated fair value, suggesting potential for appreciation. Rusta has opened new stores in Sweden and Norway, expanding its footprint to 217 locations as part of a robust growth strategy. Recent financials show sales of SEK 3 billion and net income of SEK 231 million for Q1, with dividends set at SEK 1.15 per share.

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

• Assess Rusta's past performance with our detailed historical performance reports.

Taking Advantage

• Investigate our full lineup of 56 Swedish Undiscovered Gems With Strong Fundamentals right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• 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.
• 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.

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