3 Swedish Exchange Stocks Estimated To Be Trading Up To 45.8% Below Intrinsic Value
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Despite the global economic uncertainties, the Swedish stock market has shown resilience, with several stocks trading significantly below their intrinsic value. Identifying undervalued stocks in such a market can offer substantial opportunities for investors looking to capitalize on potential gains.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sleep Cycle (OM:SLEEP) | SEK41.10 | SEK80.21 | 48.8% |
| CTT Systems (OM:CTT) | SEK271.00 | SEK500.27 | 45.8% |
| QleanAir (OM:QAIR) | SEK26.90 | SEK51.69 | 48% |
| Concentric (OM:COIC) | SEK227.00 | SEK412.61 | 45% |
| Nolato (OM:NOLA B) | SEK51.55 | SEK98.91 | 47.9% |
| Wall to Wall Group (OM:WTW A) | SEK61.80 | SEK107.31 | 42.4% |
| Serstech (OM:SERT) | SEK1.37 | SEK2.66 | 48.5% |
| Mentice (OM:MNTC) | SEK27.40 | SEK51.05 | 46.3% |
| Svedbergs Group (OM:SVED BTA B) | SEK36.30 | SEK65.51 | 44.6% |
| BHG Group (OM:BHG) | SEK14.78 | SEK27.28 | 45.8% |
Let's dive into some prime choices out of the screener.
BHG Group
Overview: BHG Group AB (publ) is a consumer e-commerce company operating in Sweden, Finland, Denmark, Norway, the rest of Europe, and internationally with a market cap of SEK2.65 billion.
Operations: BHG Group AB (publ) generates revenue through three main segments: Value Home (SEK2.90 billion), Premium Living (SEK2.25 billion), and Home Improvement (SEK5.32 billion).
Estimated Discount To Fair Value: 45.8%
BHG Group AB's recent earnings report shows a decline in sales and revenue, with a net loss of SEK 102.3 million for Q2 2024. Despite this, BHG is trading at SEK 14.78, significantly below its estimated fair value of SEK 27.28. The company is expected to become profitable within three years, with forecasted annual earnings growth of 132.75%. However, it has experienced high share price volatility recently and low projected return on equity (2%).
CTT Systems
Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft globally and has a market cap of SEK3.40 billion.
Operations: The company's revenue from Aerospace & Defense is SEK317.70 million.
Estimated Discount To Fair Value: 45.8%
CTT Systems is trading at SEK 271, significantly below its estimated fair value of SEK 500.27. The company has shown consistent earnings growth of 6.5% annually over the past five years and is expected to continue growing profits by 24.8% per year, outpacing the Swedish market's forecasted growth rate of 15.3%. Recent earnings reports show stable performance with net income for H1 2024 at SEK 49.1 million, up from SEK 42.7 million a year ago.