Husqvarna And Two More Swedish Exchange Stocks Considered Undervalued By Market Estimates

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The Swedish stock market, like many global markets, has been reacting to broader economic signals, notably influenced by recent shifts in U.S. inflation rates and monetary policy expectations. As investors navigate through these changing tides, identifying undervalued stocks such as Husqvarna becomes crucial for those looking to potentially enhance their portfolios during uncertain times.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

RVRC Holding (OM:RVRC)

SEK46.00

SEK86.95

47.1%

Afry (OM:AFRY)

SEK204.00

SEK394.92

48.3%

Nordic Waterproofing Holding (OM:NWG)

SEK160.00

SEK305.65

47.7%

Nolato (OM:NOLA B)

SEK62.20

SEK118.78

47.6%

Stille (OM:STIL)

SEK208.00

SEK395.81

47.4%

Dometic Group (OM:DOM)

SEK70.05

SEK130.23

46.2%

Biotage (OM:BIOT)

SEK173.80

SEK317.13

45.2%

Svedbergs Group (OM:SVED BTA B)

SEK36.30

SEK65.51

44.6%

Nordisk Bergteknik (OM:NORB B)

SEK16.88

SEK30.83

45.3%

Image Systems (OM:IS)

SEK1.505

SEK2.85

47.2%

Click here to see the full list of 44 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Husqvarna

Overview: Husqvarna AB (publ) specializes in manufacturing and distributing outdoor power products, watering products, and lawn care equipment, with a market capitalization of approximately SEK 52.65 billion.

Operations: Husqvarna AB's revenue is primarily generated from three segments: Gardena at SEK 13.06 billion, Husqvarna Construction at SEK 8.23 billion, and Husqvarna Forest & Garden at SEK 29.38 billion.

Estimated Discount To Fair Value: 31.8%

Husqvarna, trading at SEK 92.16, is significantly undervalued based on a fair value estimate of SEK 135.09, reflecting a strong potential upside. Despite its high debt levels and low forecasted return on equity at 14%, the company's earnings are expected to grow robustly by approximately 24.9% annually over the next three years, outpacing the Swedish market's growth. Recent strategic partnerships, like with Liverpool Football Club, aim to enhance global brand visibility and market penetration.

OM:HUSQ B Discounted Cash Flow as at Jul 2024

Sweco

Overview: Sweco AB (publ) offers architecture and engineering consultancy services globally, with a market capitalization of approximately SEK 56.42 billion.

Operations: Sweco's revenue is primarily generated from its operations in Sweden (SEK 8.52 billion), followed by Belgium (SEK 3.92 billion), Norway (SEK 3.39 billion), Finland (SEK 3.67 billion), Denmark (SEK 2.98 billion), the Netherlands (SEK 2.89 billion), Germany & Central Europe (SEK 2.62 billion), and the UK (SEK 1.46 billion).