Nordic small cap stocks

A best in class IT concultancy firm from Norway. At a market cap of 800 MUSD, this quality compounder has great opportunity to continue outperforming the market.

The company is trading at a FCF-yield of 5%, and growing revenues 10% annually. Without the need to retain earnings in order to grow the investment could yield a 15% annual return, with very low risk of terminal capital loss.

There is risk of multiple compression in the near term as it trades at 20 times earnings. In such an event, Bouvet could be a fantastic opportunity.

This is not financial advice.

A capital efficient micro cap staffing company from Sweden. The company doesn't need to retain earnings to grow, but still grows 10% annually.

Trading at a FCF (and dividend) yield of 5%, it's destined to deliver shareholder returns of 15% annually. The company has a very low business risk, due to a simple, yet brilliant business model.

Investing doesn't get any more boring (nor better) than this.

Not financial advice.

When valuing a cyclical wholesale retailer one cannot simply apply a multiple. At depressed earnings after a post-covid bull-whip effect and economic downturn, AOs future earnings power is understated in my opinion.

The market's belief in a reversion to the mean doesn't factor in the substantial investments in IT and infrastructure made by the company pre-covid. This makes AO an attractive investment prospect with minimal risk of terminal capital loss.

$AOJ trades at an estimated forward FCF-yield of 10%, having historically grown FCF 15% per year. I foresee a solid shareholder return of about 15-25% per year for the next 3-5 years, when the increased earnings power is recognized by the market.

Not investment advice, but merely my take on an interesting company.

When valuing a cyclical wholesale retailer one cannot simply apply a multiple. At depressed earnings after a post-covid bull-whip effect and economic downturn, AOs future earnings power is understated in my opinion.

The market's belief in a reversion to the mean doesn't factor in the substantial investments in IT and infrastructure made by the company pre-covid. This makes AO an attractive investment prospect with minimal risk of terminal capital loss.

$AOJ trades at an estimated forward FCF-yield of 13%, having historically grown FCF 15% per year. I foresee a solid shareholder return of about 15-25% per year for the next 3-5 years, when the increased earnings power is recognized by the market.

Not investment advice, but merely my take on an interesting company.

Medistim ASA is a medical techonology company with a near monopoly within their niche and a razor-blade business model.

In a more than 50% draw-down due to macro-economic factors, this is a secular compounder available at a reasonable price. At a 4% FCF-yield, the company is in position to deliver double digit growth for the foreseeable future. The company has great margins, 30% ROE, and no need to retain earnings in order to grow.

Not financial advice, just my opinion on an interesting company.

A promising micro cap software as a service company from Sweden. At a market cap of 70 MUSD it trades at a FCF yield of 3% while growing ARR 20%. The company retains no earnings, grows profitably and has a founder-led management team.

No financial advice, merely my take on the company.

A quality micro-cap technology company from Sweden. The company grew 24% in 2024, and does so without the need to invest a lot of capital or retaining a lot of the earnings.

The company has a scalable business model, and is expected to grow double digits for the foreseeable future, trading at a FCF yield of more than 3%. This may be a secular compounder with substantial upside.

No financial advice, and only my opinion about the company.

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