3 Swedish Stocks That May Be Trading Below Their Estimated Value
In This Article:
The Swedish stock market has experienced fluctuations recently, influenced by global economic data and shifting investor sentiments. Amid these conditions, identifying undervalued stocks can be a strategic approach for investors seeking opportunities in a volatile environment. In this context, we will explore three Swedish stocks that may be trading below their estimated value.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| CTT Systems (OM:CTT) | SEK272.00 | SEK498.62 | 45.4% |
| Scandi Standard (OM:SCST) | SEK83.90 | SEK161.97 | 48.2% |
| Stille (OM:STIL) | SEK225.00 | SEK445.47 | 49.5% |
| Paradox Interactive (OM:PDX) | SEK141.70 | SEK261.71 | 45.9% |
| Litium (OM:LITI) | SEK8.48 | SEK16.55 | 48.8% |
| Dometic Group (OM:DOM) | SEK69.95 | SEK133.73 | 47.7% |
| Flexion Mobile (OM:FLEXM) | SEK9.36 | SEK17.72 | 47.2% |
| Tourn International (OM:TOURN) | SEK8.30 | SEK16.48 | 49.6% |
| BHG Group (OM:BHG) | SEK14.85 | SEK27.32 | 45.6% |
| Ferronordic (OM:FNM) | SEK77.20 | SEK154.19 | 49.9% |
Let's uncover some gems from our specialized 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 SEK2.66 billion.
Operations: The company's revenue segments comprise Value Home at SEK2.90 billion, Premium Living at SEK2.25 billion, and Home Improvement at SEK5.32 billion.
Estimated Discount To Fair Value: 45.6%
BHG Group is trading at SEK 14.85, significantly below its estimated fair value of SEK 27.32, indicating it may be undervalued based on cash flows. Despite a recent net loss of SEK 102.3 million for Q2 2024 and declining revenues, earnings are forecast to grow by 132.75% annually over the next three years, with profitability expected within this period. However, BHG's Return on Equity is projected to remain low at around 2%.
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Our growth report here indicates BHG Group may be poised for an improving outlook.
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Take a closer look at BHG Group's balance sheet health here in our report.
CTT Systems
Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft globally, with a market cap of SEK3.41 billion.
Operations: Aerospace & Defense revenue for CTT Systems AB (publ) stands at SEK317.70 million.
Estimated Discount To Fair Value: 45.4%
CTT Systems is currently trading at SEK 272, significantly below its estimated fair value of SEK 498.62, indicating it may be undervalued based on cash flows. Earnings are forecast to grow at 24.8% per year, outpacing the Swedish market's growth rate of 15.7%. Recent corporate guidance projects a sales increase of up to 16% for H2 2024 compared to the same period in 2023, reinforcing positive revenue growth expectations.