Estimated Discount To Fair Value: 38.7%

Husqvarna, trading at SEK 87.36, is identified as undervalued by DCF analysis with a fair value of SEK 142.63, indicating a significant discount. Recent earnings show a decline from SEK 17.17 billion to SEK 14.72 billion year-over-year with net income also falling, reflecting challenges despite strong brand enhancement moves like the Liverpool FC partnership aimed at boosting global visibility. However, Husqvarna's earnings are expected to grow substantially by about 24.7% annually over the next three years, outperforming the Swedish market's growth forecast of 14.4%.

• Our growth report here indicates Husqvarna may be poised for an improving outlook.

• Get an in-depth perspective on Husqvarna's balance sheet by reading our health report here.

Sweco

Overview: Sweco AB (publ) offers architecture and engineering consultancy services globally, with a market capitalization of approximately SEK 53.33 billion.

Operations: Sweco's revenue is segmented across various regions, with Sweden generating SEK 8.52 billion, Norway SEK 3.39 billion, Belgium SEK 3.92 billion, Denmark SEK 2.98 billion, Finland SEK 3.67 billion, the Netherlands SEK 2.89 billion, and Germany & Central Europe contributing SEK 2.62 billion.

Estimated Discount To Fair Value: 31.9%

Sweco, priced at SEK 148.5, is considered undervalued based on DCF with an intrinsic value of SEK 218.08, indicating a substantial margin of safety. While its dividend history is inconsistent, Sweco’s earnings are projected to increase by 16.41% annually, surpassing the Swedish market's average growth rate. Recent strategic partnerships for green hydrogen projects with Helen and VoltH2 highlight its commitment to expanding in sustainable energy sectors, potentially boosting future revenue streams despite a slight dip in Q1 earnings year-over-year from SEK 625 million to SEK 558 million.

• The growth report we've compiled suggests that Sweco's future prospects could be on the up.

• Take a closer look at Sweco's balance sheet health here in our report.

Next Steps

• Dive into all 44 of the Undervalued Swedish Stocks Based On Cash Flows we have identified here.

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Curious About Other Options?

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• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OM:CTT OM:HUSQ B and OM:SWEC B.

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