Swedish Undiscovered Gems Featuring engcon And Two Promising Small Caps

In This Article:

As global markets experience heightened volatility and mixed economic signals, investors are increasingly turning their attention to small-cap stocks for potential growth opportunities. In this dynamic environment, Sweden offers a fertile ground for undiscovered gems, including engcon and two other promising small-cap companies. Identifying strong stocks in such conditions often involves looking at innovative business models, solid financial health, and the ability to navigate economic fluctuations effectively.

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%

★★★★★★

Karnell Group

44.29%

22.04%

39.45%

★★★★★☆

Click here to see the full list of 54 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

engcon

Simply Wall St Value Rating: ★★★★★☆

Overview: engcon AB (publ) engages in the design, production, and sale of excavator tools globally and has a market cap of SEK15.91 billion.

Operations: The company generates revenue primarily from the Construction Machinery & Equipment segment, which reported SEK 1.54 billion. The net profit margin for the latest period is notable at 15%.

Earnings for engcon have faced a challenging year, with net income dropping to SEK 55 million in Q2 2024 from SEK 83 million last year. Sales also fell to SEK 450 million from SEK 508 million. The company's debt situation is satisfactory with an 8.5% net debt to equity ratio, and interest payments are well covered by EBIT at a multiple of 20.4x. Despite high-quality earnings, profit margins dipped from last year's 18% to the current 9.9%.

OM:ENGCON B Debt to Equity as at Aug 2024
OM:ENGCON B Debt to Equity as at Aug 2024

Haypp Group

Simply Wall St Value Rating: ★★★★★★

Overview: Haypp Group AB (publ) is an online retailer specializing in tobacco-free nicotine pouches and snus products across Sweden, Norway, the rest of Europe, and the United States, with a market cap of SEK3.21 billion.

Operations: Haypp Group generates revenue primarily from the sale of tobacco-free nicotine pouches and snus products. The company's market cap stands at SEK3.21 billion.