Exploring 3 Undiscovered Gems in Sweden with Solid Foundations
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As global markets react to the recent Federal Reserve rate cuts, small-cap indices have shown promising performance, although they remain below their historical peaks. Amid this backdrop, Sweden's market offers intriguing opportunities for investors seeking solid foundations in undiscovered gems. In today's environment, a good stock typically exhibits strong fundamentals and resilience to broader market fluctuations.
Top 10 Undiscovered Gems With Strong Fundamentals In Sweden
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Softronic | NA | 3.58% | 7.41% | ★★★★★★ |
| Bahnhof | NA | 9.02% | 15.02% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 16.04% | 32.29% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Svolder | NA | -22.68% | -24.17% | ★★★★★★ |
| Byggm?stare Anders J Ahlstr?m Holding | NA | 30.31% | -9.00% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Solid F?rs?kringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
Clas Ohlson
Simply Wall St Value Rating: ★★★★★★
Overview: Clas Ohlson AB (publ) is a retail company that sells hardware, electrical, multimedia, home, and leisure products in Sweden, Norway, Finland, and internationally with a market cap of SEK10.53 billion.
Operations: Clas Ohlson AB (publ) generates revenue primarily through its retail segment, which amounted to SEK10.66 billion. The company's net profit margin was 3.5%.
With earnings growth of 281.8% over the past year, Clas Ohlson has outpaced the Specialty Retail industry’s 21%. The company is debt-free, a significant improvement from a debt-to-equity ratio of 6.5% five years ago. Trading at 65.6% below its estimated fair value, it offers good relative value compared to peers and industry standards. Recent first-quarter results showed sales of SEK 2.62 billion and net income of SEK 145.8 million, reversing last year's loss.
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Navigate through the intricacies of Clas Ohlson with our comprehensive health report here.
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Understand Clas Ohlson's track record by examining our Past report.
Duni
Simply Wall St Value Rating: ★★★★★★
Overview: Duni AB (publ) develops, manufactures, and sells concepts and products for the serving, take-away, and packaging of meals in Sweden and internationally with a market cap of approximately SEK4.84 billion.
Operations: Duni generates revenue primarily from dining solutions (SEK 4.52 billion) and food packaging solutions (SEK 3.05 billion).
Duni has shown strong financial health, with earnings growing 23% annually over the past five years and a debt-to-equity ratio decreasing from 60.7% to 29.3%. The company’s EBIT covers interest payments by 11.2 times, indicating robust profitability. Despite recent earnings of SEK 81 million for Q2 being lower than last year’s SEK 104 million, Duni is trading at nearly half its estimated fair value and continues to generate positive free cash flow.