Dometic Group And 2 Swedish Stocks That May Be Trading Below Their Intrinsic Value

The Swedish market has been influenced by the Riksbank's recent decision to lower borrowing costs, signaling a potential shift towards more accommodative monetary policies. With this economic environment in mind, investors may find opportunities in stocks that are trading below their intrinsic value. Identifying undervalued stocks often involves looking for companies with strong fundamentals and growth potential that are not fully reflected in their current stock prices. In this article, we will explore Dometic Group and two other Swedish stocks that may be trading below their intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
Sleep Cycle (OM:SLEEP)	SEK41.60	SEK80.06	48%
QleanAir (OM:QAIR)	SEK27.20	SEK51.78	47.5%
Paradox Interactive (OM:PDX)	SEK140.30	SEK258.10	45.6%
Stille (OM:STIL)	SEK222.00	SEK442.89	49.9%
Dometic Group (OM:DOM)	SEK71.05	SEK131.89	46.1%
Nolato (OM:NOLA B)	SEK53.85	SEK98.96	45.6%
Flexion Mobile (OM:FLEXM)	SEK9.36	SEK17.69	47.1%
Tourn International (OM:TOURN)	SEK8.80	SEK16.47	46.6%
Mentice (OM:MNTC)	SEK27.60	SEK50.83	45.7%
Svedbergs Group (OM:SVED BTA B)	SEK36.30	SEK65.51	44.6%

Click here to see the full list of 41 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Dometic Group (OM:DOM)

Overview: Dometic Group AB (publ) offers mobile living solutions for food and beverage, climate, power and control, and other applications, with a market cap of SEK22.70 billion.

Operations: The company's revenue segments include 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: 46.1%

Dometic Group (DOM) appears highly undervalued based on discounted cash flow analysis, trading at SEK 71.05, significantly below its estimated fair value of SEK 131.89. Despite a high level of debt, DOM's earnings are forecast to grow at 26.8% per year, outpacing the Swedish market's growth rate of 16.1%. Recent earnings reports show a decline in sales and net income compared to last year; however, the company's future profit growth remains robust according to analyst estimates.

• In light of our recent growth report, it seems possible that Dometic Group's financial performance will exceed current levels.
• Delve into the full analysis health report here for a deeper understanding of Dometic Group.

Fortnox (OM:FNOX)

Overview: Fortnox AB (publ) offers financial and administrative software solutions for small and medium-sized businesses, accounting firms, and organizations, with a market cap of SEK35.09 billion.

Operations: The company's revenue segments include Businesses (SEK378 million), Marketplaces (SEK160 million), Core Products (SEK734 million), Accounting Firms (SEK352 million), and Financial Services (SEK249 million).

Estimated Discount To Fair Value: 26.6%

Fortnox is trading at SEK 57.52, significantly below its estimated fair value of SEK 78.32, making it appear undervalued based on cash flows. The company's earnings grew by 48.1% over the past year and are forecast to grow at an annual rate of 22.6%, outpacing the Swedish market's growth rate of 16.1%. Recent earnings reports show strong performance with Q2 revenue increasing to SEK 521 million from SEK 413 million a year ago and net income rising to SEK 164 million from SEK 127 million.

• Our comprehensive growth report raises the possibility that Fortnox is poised for substantial financial growth.
• Click here and access our complete balance sheet health report to understand the dynamics of Fortnox.

Vimian Group (OM:VIMIAN)

Overview: Vimian Group AB (publ) operates in the global animal health industry and has a market cap of SEK22.41 billion.

Operations: Vimian Group AB (publ) generates revenue from four main segments: Medtech (€111.91 million), Diagnostics (€20.63 million), Specialty Pharma (€158.39 million), and Veterinary Services (€53.95 million).

Estimated Discount To Fair Value: 30.9%

Vimian Group is trading at SEK 42.9, markedly below its estimated fair value of SEK 62.09, suggesting it is undervalued based on cash flows. Earnings are forecast to grow significantly at 62.89% annually over the next three years, outpacing the Swedish market's growth rate of 16.1%. Recent Q2 earnings show improved performance with sales rising to €90.99 million from €81.31 million and net income increasing to €4.87 million from €2.99 million year-over-year.

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

Where To Now?

• Get an in-depth perspective on all 41 Undervalued Swedish Stocks Based On Cash Flows by using our screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Want To Explore Some Alternatives?

• 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.

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