Undiscovered Gems in Sweden to Watch This October 2024

Operations: Revenue streams for Proact IT Group AB are primarily derived from its operations in the Nordics & Baltics, which contribute SEK2.59 billion, followed by Central Europe (Czech Republic and Germany) with SEK877 million, and the West (Belgium and Netherlands) with SEK834 million.

Sweden’s Proact IT Group seems to be an intriguing player in the IT sector, with its earnings growth of 41.7% over the past year significantly outpacing the industry average of -6.3%. The company appears to be trading at a considerable discount, 40.8% below its estimated fair value, suggesting potential upside for investors. Financially robust, Proact has reduced its debt-to-equity ratio from 78.3% to 48.8% over five years and maintains strong interest coverage with EBIT covering interest payments 32 times over. Recent leadership changes include Jamie Ford joining as business unit director UK, potentially bolstering strategic initiatives.

OM:PACT Earnings and Revenue Growth as at Oct 2024

Simply Wall St Value Rating: ★★★★★★

Overview: Zinzino AB (publ) is a direct sales company that offers dietary supplements and skincare products in Sweden and internationally, with a market cap of approximately SEK3.09 billion.

Operations: Zinzino generates revenue primarily from its Zinzino (Incl. VMA Life) segment, which accounts for SEK1.83 billion, while Faun contributes SEK170.31 million.

Zinzino, a Swedish company in the retail distributors sector, has been performing impressively with earnings growth of 66.9% over the past year, outpacing the industry average of -3.1%. The firm is debt-free and trades at 60.5% below its estimated fair value, suggesting potential undervaluation. Recent sales announcements highlight a robust revenue increase of 39% in August to SEK 178.7 million compared to SEK 128.4 million last year. For the second quarter of 2024, net income rose to SEK 47.99 million from SEK 36.8 million previously, with basic earnings per share improving from SEK 1.09 to SEK 1.41.

OM:ZZ B Debt to Equity as at Oct 2024

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:BESQAB OM:PACT and OM:ZZ B.

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