Exploring 3 Undiscovered Swedish Gems with Strong Fundamentals
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As global markets continue to show mixed performances, with small-cap and value shares outpacing large-cap growth stocks, investors are increasingly looking towards under-the-radar opportunities. In this context, the Swedish market offers some compelling options with strong fundamentals that may be overlooked by the broader investment community.
Top 10 Undiscovered Gems With Strong Fundamentals In Sweden
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Bahnhof | NA | 9.47% | 15.07% | ★★★★★★ |
| Softronic | NA | 3.58% | 7.41% | ★★★★★★ |
| Duni | 29.33% | 10.78% | 22.98% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Karnell Group | 44.29% | 22.04% | 39.45% | ★★★★★☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Betsson
Simply Wall St Value Rating: ★★★★★★
Overview: Betsson AB (publ) operates an online gaming business through its subsidiaries across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK17.62 billion.
Operations: Betsson AB (publ) generates revenue primarily from its Casinos & Resorts segment, which reported €1009.20 million. The company's net profit margin stands at 12.5%.
Betsson, a notable player in Sweden's market, has demonstrated impressive financial health. The company’s earnings growth of 12.2% over the past year outpaced the Hospitality industry’s -12.7%. Betsson trades at 71.6% below its estimated fair value and boasts high-quality earnings with EBIT covering interest payments 16.5 times over. Despite a slight dip in net income to EUR 45.5 million for Q2 2024 from EUR 50.2 million last year, it remains profitable and expanding into new markets like Peru and Argentina.
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Click to explore a detailed breakdown of our findings in Betsson's health report.
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Review our historical performance report to gain insights into Betsson's's past performance.
Biotage
Simply Wall St Value Rating: ★★★★★★
Overview: Biotage AB (publ) offers solutions and products for drug discovery and development, analytical testing, and water and environmental testing, with a market cap of SEK16.07 billion.
Operations: Biotage generates revenue primarily from its Healthcare Software segment, which amounted to SEK 2.08 billion. The company has a market cap of SEK 16.07 billion.
Biotage, a Swedish life sciences company, has seen its earnings grow by 16.2% over the past year, outpacing the industry average of -13%. Trading at 37.4% below its estimated fair value, Biotage appears undervalued. The firm has more cash than total debt and reduced its debt-to-equity ratio from 19.2% to 4% over five years. Recent earnings reports show sales of SEK 504 million for Q2 and net income of SEK 48 million, up from SEK 34 million last year.