Exploring CTT Systems And Two Other Swedish Small Caps with Promising Potential

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As global markets react to mixed economic data and volatility, the Swedish market remains a focal point for investors seeking stability and growth in small-cap stocks. Despite broader concerns, Sweden's robust economic indicators provide fertile ground for discovering undervalued opportunities. In this environment, identifying promising small-cap stocks involves looking for companies with strong fundamentals, innovative products or services, and a clear path to profitability. Today we explore CTT Systems and two other Swedish small caps that exemplify these qualities.

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%

★★★★★★

Solid F?rs?kringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 52 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

CTT Systems

Simply Wall St Value Rating: ★★★★★☆

Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft in Sweden, Denmark, France, the United States, and internationally with a market cap of SEK3.41 billion.

Operations: CTT Systems AB generates revenue primarily from its Aerospace & Defense segment, which contributed SEK317.70 million. The company has a market cap of SEK3.41 billion.

CTT Systems has seen annual earnings growth of 6.5% over the past five years, although its recent 20.9% earnings increase lagged behind the Aerospace & Defense industry's 24.6%. The company boasts a robust financial position with more cash than total debt and an impressive EBIT coverage of interest payments at 255 times. Trading at a significant discount, CTT appears undervalued by about 45.5%, with high-quality earnings underscoring its potential for future growth.

OM:CTT Debt to Equity as at Aug 2024
OM:CTT Debt to Equity as at Aug 2024

RVRC Holding

Simply Wall St Value Rating: ★★★★★★

Overview: RVRC Holding AB (publ) operates in the active lifestyle clothing sector across Sweden, Germany, Finland, and internationally with a market cap of SEK4.92 billion.

Operations: RVRC Holding AB (publ) generates revenue primarily through online retailers, amounting to SEK1.80 billion. The company reported a net profit margin of 15%.