Discovering Sweden's Undiscovered Gems in October 2024

In October 2024, the Swedish market is navigating a landscape marked by the European Central Bank's recent rate cuts, which have spurred optimism for further monetary easing across Europe. As investors seek opportunities in this evolving environment, small-cap stocks in Sweden present intriguing possibilities due to their potential for growth and resilience amid changing economic conditions. Identifying good stocks often involves looking for companies with strong fundamentals that can thrive despite broader market shifts, making them potential gems in today's dynamic climate.

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%	★★★★★★
Firefly	NA	16.04%	32.29%	★★★★★★
AB Traction	NA	5.38%	5.19%	★★★★★★
Byggmästare Anders J Ahlström Holding	NA	30.31%	-9.00%	★★★★★★
Svolder	NA	-22.68%	-24.17%	★★★★★★
Linc	NA	56.01%	0.54%	★★★★★★
Solid Försäkringsaktiebolag	NA	7.64%	28.44%	★★★★☆☆
Nederman Holding	73.66%	10.94%	15.88%	★★★★☆☆

Click here to see the full list of 54 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Bahnhof (OM:BAHN B)

Simply Wall St Value Rating: ★★★★★★

Overview: Bahnhof AB (publ) operates in the Internet and telecommunications sector across Sweden and Europe with a market capitalization of SEK5.70 billion.

Operations: Bahnhof generates revenue primarily from its Internet and telecommunications services across Sweden and Europe. The company's financial performance is highlighted by a net profit margin of 12.5%, indicating its efficiency in converting revenue into profit after accounting for all expenses.

Bahnhof, a nimble player in the telecom industry, is making waves with its debt-free status and high-quality earnings. Over the past year, earnings surged by 21%, outpacing the industry's 4% growth. Recent inclusion in the S&P Global BMI Index underscores its growing recognition. For Q2 2024, Bahnhof reported sales of SEK 500.88 million and net income of SEK 53.71 million, reflecting solid performance compared to last year’s figures of SEK 459.06 million and SEK 46.44 million respectively. With basic EPS rising to SEK 0.5 from SEK 0.43, Bahnhof seems poised for continued momentum in its market segment.

• Get an in-depth perspective on Bahnhof's performance by reading our health report here.

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

BTS Group (OM:BTS B)

Simply Wall St Value Rating: ★★★★★☆

Overview: BTS Group AB (publ) is a professional services firm with a market capitalization of approximately SEK5.64 billion.

Operations: The company generates revenue primarily from BTS North America, contributing SEK1.52 billion, followed by BTS Other Markets at SEK810.95 million and BTS Europe at SEK554.39 million. Advantage Performance Group adds SEK162.62 million to the revenue stream.

BTS Group, a nimble player in the Swedish market, has demonstrated robust earnings growth of 32.2% over the past year, outpacing its industry peers. Despite a one-off gain of SEK 56.9M impacting recent results, the company remains free cash flow positive and profitable, with interest payments well covered by EBIT at 10.3 times coverage. However, its debt to equity ratio has risen from 13.5% to 31.2% over five years, which may warrant attention despite having more cash than total debt. Trading at nearly 40% below estimated fair value suggests potential upside for investors eyeing value opportunities in Sweden's landscape.

• Dive into the specifics of BTS Group here with our thorough health report.

• Review our historical performance report to gain insights into BTS Group's's past performance.

Net Insight (OM:NETI B)

Simply Wall St Value Rating: ★★★★★★

Overview: Net Insight AB (publ) provides media network solutions globally, with a market capitalization of approximately SEK2.64 billion.

Operations: Net Insight's revenue primarily comes from its Media Networks segment, generating SEK625.06 million.

Net Insight, a Swedish tech player, is making waves with its innovative media transport solutions. The company recently launched the Nimbra 204, a network-edge streaming appliance that offers robust transmission over low-cost networks. This product enhances their Nimbra platform by supporting up to four HD services simultaneously and high-resolution video up to 4K UHD. Financially, Net Insight is debt-free and trades at 42.7% below its estimated fair value. Its earnings grew by 50% last year, outpacing the communications industry's -37.8%. With no debt for five years and positive free cash flow, it shows strong financial health.

• Take a closer look at Net Insight's potential here in our health report.

• Understand Net Insight's track record by examining our Past report.

Where To Now?

• Reveal the 54 hidden gems among our Swedish Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Want To Explore Some Alternatives?

• 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.

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