Estimated Discount To Fair Value: 13.6%

HMS Networks, trading at SEK378.6, is undervalued compared to its estimated fair value of SEK438.38. The company anticipates significant earnings growth of 28.6% annually over the next three years, surpassing the Swedish market's 15.7%. Recent restructuring into three divisions aims to enhance operational efficiency and customer focus, potentially boosting cash flows despite a high debt level and reduced profit margins from last year’s 20.1% to 14%.

• In light of our recent growth report, it seems possible that HMS Networks' financial performance will exceed current levels.

• Click to explore a detailed breakdown of our findings in HMS Networks' balance sheet health report.

Husqvarna

Overview: Husqvarna AB (publ) is a company that produces and sells outdoor power products, watering products, and lawn care power equipment, with a market cap of approximately SEK39.32 billion.

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

Estimated Discount To Fair Value: 44.9%

Husqvarna, trading at SEK68.88, is significantly undervalued compared to its estimated fair value of SEK124.97. Despite a high debt level and recent challenges impacting sales and operating results, the company's earnings are forecast to grow substantially at 26.3% annually over the next three years, outpacing the Swedish market's growth rate. Recent product innovations in robotic lawnmowers could enhance future cash flows and strengthen its position in autonomous turf care technology.

• The analysis detailed in our Husqvarna growth report hints at robust future financial performance.

• Click here and access our complete balance sheet health report to understand the dynamics of Husqvarna.

Where To Now?

• Discover the full array of 47 Undervalued Swedish Stocks Based On Cash Flows right here.

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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.

Companies discussed in this article include OM:FNOX OM:HMS and OM:HUSQ B.

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