Billerud And 2 Other Swedish Stocks Possibly Trading Below Fair Value
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The Swedish stock market has shown resilience amid recent economic fluctuations, with the pan-European STOXX Europe 600 Index ending the week 1.85% higher following an interest rate cut from the European Central Bank. As investors navigate these shifting conditions, identifying undervalued stocks can be a strategic approach to potentially capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sleep Cycle (OM:SLEEP) | SEK40.40 | SEK79.91 | 49.4% |
| Husqvarna (OM:HUSQ B) | SEK65.60 | SEK130.16 | 49.6% |
| QleanAir (OM:QAIR) | SEK27.00 | SEK51.47 | 47.5% |
| Biotage (OM:BIOT) | SEK183.70 | SEK361.21 | 49.1% |
| Stille (OM:STIL) | SEK222.00 | SEK439.82 | 49.5% |
| Lindab International (OM:LIAB) | SEK265.00 | SEK522.68 | 49.3% |
| Litium (OM:LITI) | SEK8.30 | SEK16.42 | 49.5% |
| Tourn International (OM:TOURN) | SEK8.26 | SEK16.50 | 49.9% |
| Mentice (OM:MNTC) | SEK27.50 | SEK50.98 | 46.1% |
| MilDef Group (OM:MILDEF) | SEK84.50 | SEK161.28 | 47.6% |
Let's dive into some prime choices out of the screener.
Billerud
Overview: Billerud AB (publ) is a global provider of paper and packaging materials with a market cap of SEK26.16 billion.
Operations: The company generates revenue from several segments, including SEK27.08 billion from Region Europe, SEK11.35 billion from Region North America, and SEK2.77 billion from Solution & Other (excluding currency hedging).
Estimated Discount To Fair Value: 32.5%
Billerud AB is trading 32.5% below its estimated fair value, with a discounted cash flow valuation of SEK 105.2 against an estimated fair value of SEK 155.85. Recent earnings show significant improvement, with Q2 net income at SEK 63 million compared to a net loss last year and six-month net income rising to SEK 376 million from SEK 158 million. Despite lower profit margins and unstable dividends, analysts forecast annual profit growth of 31.7%, outpacing the Swedish market's expected growth rate.
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Our growth report here indicates Billerud may be poised for an improving outlook.
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Delve into the full analysis health report here for a deeper understanding of Billerud.
MilDef Group
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 SEK3.37 billion.
Operations: The company generates revenue of SEK1.11 billion from its Computer Hardware segment.
Estimated Discount To Fair Value: 47.6%
MilDef Group is trading at SEK 84.5, significantly below its estimated fair value of SEK 161.28, suggesting it may be undervalued based on cash flows. The company forecasts robust earnings growth of 47% annually over the next three years, outpacing the Swedish market's expected growth rate. Recent contracts with the Norwegian Defence Materiel Agency and BAE Systems Bofors bolster revenue prospects, though profit margins have declined from 6.2% to 3.9% year-over-year.