3 Swedish Stocks Estimated To Be Up To 48.8% Below Intrinsic Value

As European markets show resilience with the pan-European STOXX Europe 600 Index rising amid expectations of potential interest rate cuts, investors are keenly observing opportunities within individual countries like Sweden. In this context, identifying undervalued stocks becomes crucial as these equities may offer significant upside potential when market conditions align with intrinsic value estimates.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
CTT Systems (OM:CTT)	SEK263.00	SEK490.91	46.4%
Truecaller (OM:TRUE B)	SEK44.38	SEK86.61	48.8%
Concentric (OM:COIC)	SEK212.50	SEK404.43	47.5%
Biotage (OM:BIOT)	SEK183.00	SEK365.07	49.9%
Lindab International (OM:LIAB)	SEK272.60	SEK527.38	48.3%
Litium (OM:LITI)	SEK8.12	SEK16.22	49.9%
Wall to Wall Group (OM:WTW A)	SEK57.00	SEK105.68	46.1%
Dometic Group (OM:DOM)	SEK58.10	SEK107.69	46.1%
BHG Group (OM:BHG)	SEK14.16	SEK26.57	46.7%
Bactiguard Holding (OM:BACTI B)	SEK45.90	SEK86.07	46.7%

Click here to see the full list of 40 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

H & M Hennes & Mauritz (OM:HM B)

Overview: H & M Hennes & Mauritz AB (publ) operates globally, offering clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children with a market cap of approximately SEK276.45 billion.

Operations: The company generates revenue primarily from its apparel segment, which amounts to SEK234.94 billion.

Estimated Discount To Fair Value: 15.9%

H&M is trading at SEK171.75, below its estimated fair value of SEK204.33, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 17% annually, outpacing the Swedish market's 15.6%. However, recent earnings showed a decline in quarterly sales and net income compared to last year. The dividend yield of 3.78% isn't well covered by earnings, indicating potential sustainability concerns despite robust profit growth forecasts.

• Insights from our recent growth report point to a promising forecast for H & M Hennes & Mauritz's business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of H & M Hennes & Mauritz.

Truecaller (OM:TRUE B)

Overview: Truecaller AB (publ) develops and publishes mobile caller ID applications for individuals and businesses across India, the Middle East, Africa, and internationally, with a market cap of SEK15.24 billion.

Operations: The company's revenue primarily comes from its Communications Software segment, generating SEK1.72 billion.

Estimated Discount To Fair Value: 48.8%

Truecaller, trading at SEK44.38, is considered undervalued with an estimated fair value of SEK86.61. Its earnings are forecast to grow significantly at 21.6% annually, surpassing the Swedish market's growth rate. Despite recent declines in quarterly sales and net income compared to last year, strategic partnerships like the one with Halan enhance its business communication solutions and bolster brand trust. The company also initiated a share repurchase program to manage its share obligations effectively.

• Our earnings growth report unveils the potential for significant increases in Truecaller's future results.
• Unlock comprehensive insights into our analysis of Truecaller stock in this financial health report.

Vimian Group (OM:VIMIAN)

Overview: Vimian Group AB (publ) operates in the animal health industry globally, with a market capitalization of SEK23.62 billion.

Operations: The company's revenue is derived from four primary 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: 17.8%

Vimian Group, trading at SEK45.2, is undervalued relative to its estimated fair value of SEK55. The company recently reported a rise in quarterly sales to €90.99 million from €81.31 million last year, with net income increasing to €4.87 million from €2.99 million, despite flat earnings per share figures. While Vimian's earnings are projected to grow significantly at 64% annually—outpacing the Swedish market—its return on equity remains low and shareholder dilution has occurred over the past year.

• Our comprehensive growth report raises the possibility that Vimian Group is poised for substantial financial growth.
• Get an in-depth perspective on Vimian Group's balance sheet by reading our health report here.

Next Steps

• Dive into all 40 of the Undervalued Swedish Stocks Based On Cash Flows we have identified here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Searching for a Fresh Perspective?

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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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