Husqvarna And 2 Swedish Stocks That Could Be Trading At A Discount

As global markets experience mixed performances and economic indicators offer varied messages, the Swedish market has shown resilience amid broader European trends. With investors closely monitoring earnings reports and economic data, opportunities may arise for discerning individuals to identify undervalued stocks. In this context, a good stock is often characterized by strong fundamentals, robust business models, and potential for growth despite current market uncertainties. This article will explore Husqvarna and two other Swedish stocks that could be trading at a discount.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
Gränges (OM:GRNG)	SEK130.50	SEK259.94	49.8%
Husqvarna (OM:HUSQ B)	SEK72.68	SEK142.53	49%
Nordic Waterproofing Holding (OM:NWG)	SEK160.40	SEK310.86	48.4%
Volati (OM:VOLO)	SEK120.00	SEK233.44	48.6%
TF Bank (OM:TFBANK)	SEK260.00	SEK519.73	50%
RaySearch Laboratories (OM:RAY B)	SEK139.20	SEK277.95	49.9%
Nordisk Bergteknik (OM:NORB B)	SEK16.96	SEK30.98	45.3%
Sinch (OM:SINCH)	SEK28.90	SEK56.90	49.2%
MilDef Group (OM:MILDEF)	SEK73.80	SEK142.86	48.3%
Bactiguard Holding (OM:BACTI B)	SEK70.60	SEK133.51	47.1%

Click here to see the full list of 52 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Husqvarna (OM:HUSQ B)

Overview: Husqvarna AB (publ) produces and sells outdoor power products, watering products, and lawn care power equipment, with a market cap of SEK41.50 billion.

Operations: The company's revenue segments include Gardena (SEK12.59 billion), Group Common (SEK157 million), Husqvarna Construction (SEK8.14 billion), and Husqvarna Forest & Garden (SEK28.37 billion).

Estimated Discount To Fair Value: 49%

Husqvarna, trading at SEK 72.68, is significantly undervalued based on discounted cash flow analysis with an estimated fair value of SEK 142.53. Despite a recent decline in sales and net income for Q2 2024 compared to the previous year, earnings are forecast to grow significantly at 28% per year over the next three years. However, high debt levels and large one-off items impacting financial results remain concerns.

• Insights from our recent growth report point to a promising forecast for Husqvarna's business outlook.
• Click to explore a detailed breakdown of our findings in Husqvarna's balance sheet health report.

Lime Technologies (OM:LIME)

Overview: Lime Technologies AB (publ) offers SaaS-based CRM solutions in the Nordic region and has a market cap of SEK4.83 billion.

Operations: The company generates revenue primarily from selling and implementing CRM software systems, amounting to SEK631.84 million.

Estimated Discount To Fair Value: 15.5%

Lime Technologies, trading at SEK 363.5, is undervalued based on discounted cash flow analysis with an estimated fair value of SEK 430.4. Revenue and earnings are forecast to grow faster than the Swedish market at 14.6% and 24.1% per year respectively, despite a high level of debt. Recent Q2 results showed revenue growth to SEK 174.71 million from SEK 144.98 million a year ago, though net income remained stable at around SEK 20 million.

• The analysis detailed in our Lime Technologies growth report hints at robust future financial performance.
• Click here to discover the nuances of Lime Technologies with our detailed financial health report.

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 SEK2.94 billion.

Operations: The company's revenue from computer hardware amounts to SEK1.11 billion.

Estimated Discount To Fair Value: 48.3%

MilDef Group, trading at SEK 73.8, is significantly undervalued with an estimated fair value of SEK 142.86 based on discounted cash flow analysis. Despite lower profit margins this year (3.9%) compared to last year (6.2%), the company’s earnings are projected to grow substantially at 47% annually, outpacing the Swedish market's growth rate of 15.4%. Recent Q2 results showed a sales increase to SEK 301.5 million from SEK 288.8 million a year ago and net income rising slightly to SEK 23.3 million from SEK 21.3 million previously.

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

Key Takeaways

• Dive into all 52 of the Undervalued Swedish Stocks Based On Cash Flows we have identified here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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