Swedish Undiscovered Gems Backed By Strong Fundamentals

In This Article:

The Swedish stock market has shown resilience amid mixed global economic signals, with small-cap stocks drawing increased interest from investors. As the broader market sentiment fluctuates, discerning investors are on the lookout for fundamentally strong companies that can weather economic uncertainties and offer potential growth. When evaluating stocks in this environment, it is crucial to focus on robust financial health, sustainable business models, and competitive advantages. In this article, we explore three undiscovered gems in Sweden that exemplify these qualities.

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

9.47%

15.07%

★★★★★★

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%

★★★★★★

Karnell Group

44.29%

22.04%

39.45%

★★★★★☆

Solid F?rs?kringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 53 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Betsson

Simply Wall St Value Rating: ★★★★★★

Overview: Betsson AB (publ) operates an online gaming business across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK17.49 billion.

Operations: Betsson AB (publ) generates revenue primarily from its Casinos & Resorts segment, amounting to €1.01 billion. The company has a market cap of SEK17.49 billion.

Betsson has shown strong financial health, with its debt to equity ratio decreasing from 25.9% to 21.7% over the past five years and interest payments well covered by EBIT at 16.5x. The company reported EUR 271.5 million in sales for Q2 2024, up from EUR 236.8 million a year ago, though net income dipped slightly to EUR 45.5 million from EUR 50.2 million last year. Betsson's recent expansion into Peru and dividend increases highlight its strategic growth and shareholder focus.

OM:BETS B Debt to Equity as at Jul 2024
OM:BETS B Debt to Equity as at Jul 2024

Biotage

Simply Wall St Value Rating: ★★★★★★

Overview: Biotage AB (publ) offers solutions and products for drug discovery and development, analytical testing, and water and environmental testing, with a market cap of SEK15.61 billion.

Operations: Biotage AB (publ) generates revenue primarily from its Healthcare Software segment, which contributed SEK 2.08 billion. The company has a market cap of SEK 15.61 billion.