3 Scandinavian Companies With Strong Margin Growth

Episode 3 of World Travels Series aimed at finding margin-growing companies

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Dec 01, 2020
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According to the All-in-One Screener, a Premium feature of GuruFocus, three Scandinavian companies with strong margin growth as of Monday are CellaVision AB (OSTO:CEVI, Financial), Fenix Outdoor International Ltd. (OSTO:FOI B) and SalMar ASA (OSL:SALM, Financial).

Scandinavia refers to the following three Northern European countries: Denmark, Norway and Sweden. GuruFocus' All-in-One Screener allows users to select specific regions and countries using the drop-down menus in the "Regions" section. Figure 1 illustrates an example with Denmark, Norway and Sweden selected.

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Figure 1

The "Margin Growth Screen" seeks to find companies that have predictable revenue growth and strong operating margins, two key criteria of Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio)'s investing strategy. The screen further narrows the list of companies to those that have attractive valuations according to the GF Value measure, a website-exclusive method that values a stock based on historical price multiples and internal estimates for past performance and expected future growth.

The following video discusses how to apply the "Margin Growth Screen" and "Margin Growth Rank" to specific countries.

CellaVision

Shares of CellaVision traded around 291.20 Swedish krona ($34.25), showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.88.

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CellaVision supplies digital solutions for blood and body fluid analysis. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and an operating margin that has increased approximately 6% per year on average over the past five years and is outperforming over 85% of global competitors.

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Fenix Outdoor International

Shares of Fenix Outdoor International traded around 990 Swedish krona, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.71.

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Fenix Outdoor International designs and sells products for outdoor activities. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank and an operating margin that has increased approximately 10.4% per year on average over the past five years and is outperforming over 80% of global competitors.

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SalMar

Shares of SalMar traded around 487.50 Norwegian kroner ($55.27), showing that the stock is fairly valued with a price-to-GF Value ratio of 1.06.

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SalMar produces and sells farmed salmon around the globe. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 4.10% per year on average over the past five years and is outperforming over 95% of global competitors.

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Disclosure: No positions.

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