Introduction

In this analysis, I'll look at 25 companies sorted by book value. I aim to find companies selling for less than their tangible book value, following value investing principles.

I'll share the companies I didn't choose and why I didn't study them more. Book value is a good start for finding value, but it's not always enough.

I'll focus on Scandinavian stocks because that's what I know well, and I appreciate that not many people discuss these stocks.

Using my bottom-up approach, I might find some not-so-great or small companies, but sometimes they have a big positive and/or negative side. It's not all black and white.

Warnings

First off, I am not a professional and I don’t even know if what I am doing is what you are supposed to do.

This is just how I choose stocks for myself. I can't promise that my picks are always right or that the ones I don't choose are necessarily bad. It's just the process I use to find stocks that match what I'm looking for.

My basic numbers come from two websites, as we'll discuss. However, they may differ from the annual reports, so they're just a quick glance.

For deeper insight, always refer to the annual reports, which I intend to do for thorough analysis.

Screener

I prefer using the Borsdata stock screener because it's easy to use and their website is user-friendly.

However, it mainly displays Scandinavian stocks, so I can't find any US businesses here. Even though they have US stocks listed, they rarely appear when I screen.

Swedish Stirling

• Utilities
• 0.1 P/B -0,1 P/B
• -151% Own Equity

When a company has a negative book value, it means their debt is higher than their book value. That's a big red flag for me.

If the company goes under, I won't get anything back.

That's why I'm saying no to this stock.

Northern Drilling

• Energy
• 0.05 P/B
• 99,4% Own Equity

This company would definitely warrant a closer look if it weren't for the fact that Hemen Holding Limited owns 89.4% of it.

When someone owns around 90% of a company, they can take it off the stock market and make all the other owners sell their shares. With such control, they could make decisions that only benefit themselves, leaving us powerless.

However, a company like this might have valuable assets. If it weren't for the risk of me being bought out, it could be an intriguing investment.

But unfortunately, it's a no-go for me.

Lehto Group Oyj

• Industrials
• 0,6 P/B
• 24% Own Equity
• -0,4 P/E

I wish they had more money invested in the company, but this construction company still deserves a closer look.

Companies in construction and with lots of property can sometimes make their profits look better than they really are. They do this by counting the increase in their property's value as earnings, which can be misleading.

So, this gets a maybe for me.

Dancann Pharma

• Health Care
• 0,05 P/B
• 84% Own Equity
• -0,13 P/B

Healthcare companies often have a lot of assets that aren't physical, like patents. It's hard to know how valuable these really are.

Also, they might not make profits for a while, which could mean they'll need to sell more stock later.

But if they own 84% of their business, that's a good sign they can keep going without needing more cash right away. Still, a struggling company will probably need more money eventually.

I'll likely skip this stock because I'm not sure how to figure out the value of their assets or when they'll start making money.

Cardeon

• Investment company
• 0,2 P/B
• 73% Own Equity

I like investment companies because you can buy what they invest in at a lower price. It's kind of like getting a discount on a fund.

But it's tricky to figure out how much an investment company is really worth without checking what they're investing in. Those investments are what really matter. An investment company is just like us buying stocks. Imagine if someone tried to guess how much you're worth without looking at your stuff!

Usually, an investment company should own all of its own stuff, but 73% is okay, I guess. The companies they're investing in might already owe money, so it's like having double debt.

This needs a closer look. I don't even know what they're investing in right now.

Preservia Hyresfastigheter

• Real Estate
• 0,05 P/B
• 90% Own Equity
• −1,65 P/E

The name suggests they own rental properties, since "Hyresfastigheter" means rental properties in Swedish.

Many real estate companies do a lot of things like building, selling, buying, and renting properties. You can check how much money they make from renting out properties, which is called net rental income. But this only works if they have a bunch of rental properties.

I usually focus on this rental income as the main way to measure how well they're doing. Some people also try to figure out how much the properties might go up in value, but I don't bother with that. I think the rental income is more reliable, even though it might not be smart to ignore the value increase completely.

This company needs a closer look, especially since they own 90% of their stuff.

Bonzun

• Health Care
• 0,076 P/B
• 85% Own Equity
• -0,14 P/E

I'm thinking of passing on this health care company, unless I feel like taking a leap of faith.

I do like that 85% of it is owned by the company itself, and that its price-to-book ratio is low. But when I can't figure out if the book value is right or when they'll start making money, it's tough to say how much it's really worth.

I really wish I knew how to figure out the value of their assets. But I'll leave that to ...more interested men.

Recreate

• Real Estate
• 0,085 P/B
• 12% Own Equity

I'm worried about this real estate company having a lot of debt. If interest rates go up, they could end up spending all their profits just to pay it off.

I'll probably stay away from this one for now, but I might check it out later to see if their rental income is really good. Even with a lot of debt, they might still make a lot of money if their rentals bring in enough cash.

NOSIUM

• Investment company
• 0,1 P/B
• 86%
• −0,31 P/E

Sometimes, buying really cheap companies isn't a good idea, especially if they're not listed on the stock market and not making money.

But when a company's book value is super low, like in this case, it makes me curious.

This company needs a closer look. I want to figure out how much their underlying businesses are worth.

Høland og setskog sparebank

• Bank
• 0,1 P/B 1 P/B
• 10% Own Equity

So, the stock screener showed the Price-to-Book ratio was about 0.1, but I couldn't find their market value on any websites.

But when I checked their annual report, it was pretty obvious the info was wrong.

All those screeners and websites can make mistakes sometimes, which is why it's important to double-check with the annual reports to make sure everything's right.

A Price-to-Book ratio of 1 for a banking stock isn't really exciting for me. I'm not great at valuing bank stocks, so I usually rely on the book value as a clue from cheap to expensive.

So, sadly, I'm passing on this one.

Viaplay Group

• Entertainment
• 0,1 P/B 1,25 P/B
• 10% Own Equity
• −0,03 P/E
• 0,01 P/S

The book value seems off here, and a lot of their assets are probably not physical because they're in the entertainment business.

But their revenue looks really impressive. If they could make just a small profit of 1.5%, they could earn back their whole stock price.

I'm thinking of passing on this one because it's a bit outside my comfort zone. But I'm also tempted to give it a try! It could be good practice for me to learn how to value these kinds of companies.

They're not making a profit right now, which isn't great. But for companies focused on growing, it's not unusual. Right now, what's more important is how much money they're bringing in. But of course, they'll need to start making a profit eventually.

Oscar Properties

• Real Estate
• 0,1 P/B
• 10% Own Equity
• -0,03 P/E

Here's another real estate company that might need a closer look. But I'm a bit worried about how much money they owe. Their debt is really high.

I'm not sure how to handle such a big debt load. But if they're making a lot of money from renting out properties, they could probably still afford to pay their loans, even if the interest rates go up a lot.

If the low book value is accurate, they could sell some properties and use the money to pay off their debt. But that might not be so simple, because those properties are likely what's making them money in the first place.

Sogn sparebank

• Bank
• 0,1 P/B - 0,8 P/B
• 13% own equity

Once again, the book value here doesn't match what's in the annual report.

I'm not great at figuring out how much banks are worth, so I usually focus on the tangible book value. And a ratio of 0.8 isn't good enough for me.

But they do have a pretty decent amount of equity for a bank. Banks often have even less than that, so maybe that's a positive sign.

XP Chemistries

• Health Care
• 0,1 P/B 0,4 P/B
• 93% Own Equity
• -0,32 P/E

Here's another healthcare company where the Price-to-Book ratio doesn't match between the website and the stock screener. But with 93% equity, it seems like they won't need to sell more stock anytime soon, which is a good sign.

Of course, they're not making any profits right now, which might be why the price is so low. Nobody knows when they'll start making money, and they might be bleeding money for a while.

Xbrane Biopharma

• Health Care
• 0,13 P/B
• 37% Own Equity
• -0,15 P/E
• 0,22 P/S

Because they don't have much money saved up and they're not making any profits, they might have to sell more stock if they can't start making money.

But if their revenue is really coming from actual sales, that's a good sign. If they can make a profit of about 10% for three years, they'll make back all the money that the stock costs.

I'm passing on this one because it's a healthcare company. But for people who understand this stuff better than me, it's a healthcare company that's actually making some money. That means it might start making profits “soon”.

Trainimal

• Software
• 0,14 P/B
• 80% Own Equity
• -0,43 P/E
• 0,12 P/S

I think most of the value in this company might be things you can't touch, like digital tied to their platform. That's not really what I'm interested in.

But if they have a lot of money they've put into the company, and they're making a lot of money too, that could be really exciting for people who like to invest in growing companies.

Having 80% of the company owned by itself, along with a strong revenue, is a great sign. It means they have a good amount of time to hopefully start making profits soon.

I'm not going to look into it right now, but if I ever want to start checking out companies that are growing fast, I might come back to this one.

QLife

• Health Care
• 0,12 P/B -0,14 P/B
• -66% Own Equity

Once I saw that the book value is negative, it's a big red flag for me. I avoid investing in companies with more debt than their stock is worth.

The reason I like buying based on the book value is because it gives some protection if the company faces liquidation or gets bought out.

But if the debt is higher than what the company is worth, I wouldn't gain anything if those things ever happened.

With this much debt, they might have to sell more stocks, which means they need more investors to put money into their business.

So, this stock is definitely a big no for me.

Fastator

• Investment/real estate company.
• 0,14 P/B
• 32% Own Equity
• -0,35 P/E

This is a company that invests only in other real estate companies.

Honestly, I'm not a fan of how little money they have saved up in these kinds of businesses. But the companies they're investing in might be making a lot of money and have little or no debt.

But in many cases, these companies they're investing in will have debts, and not all of them will be making a good and steady profit.

I might check out what their biggest and smallest investments are, just because I find real estate companies easier to understand and figure out their worth.

Samhällsbyggnadsbolaget i Norden

• Real Estate
• 0,14 P/B
• 36% Own Equity
• -0,24 P/E

I've been saying for years that this stock is priced too high. But now, its price has dropped a lot and it's selling for less than what it's worth according to its book value, so maybe it's worth another look.

But here's the thing: a lot of people are betting that this stock will keep going down. About 15% of the company's shares are being shorted. I'm not sure what to make of that.

I might do some research on this company and see if they own real estate that brings in rental income, which is something I can understand better.

Thunderful Group

• Investment company for games
• 0,15 P/B
• 55% Own Equity
• 2,77 P/E
• 0,1 P/S

The book value probably doesn't matter much because they're in the software business.

And those ratios like P/E and P/S might not tell us much either, since they count the increase in the value of their assets as profit or revenue. Plus, if the companies they're investing in aren't listed on the stock market, who decides how much they're worth?

Since I don't really focus on things like intangible assets, I might pass on this stock. But if the companies they're invested in are making good profits and doing well, then it could be interesting.

Having only 55% of the company owned by itself isn't great for investment companies.

Circio Holding

• Health Care
• 0,2 P/B -0,66 P/B
• −143,57%

Once again, there's a big difference between what the stock screener says and what other websites show.

I usually just pass on these companies, but if you really want to be sure, you should read the annual reports and get the information yourself. Because who knows if any of these websites are really accurate?

But for me, it just doesn't seem worth the time, especially when there are so many other companies out there to look into.

Raytelligence

• Health Care
• 0,15 P/B
• 88% Own Equity
• -0,01 P/E
• 1,75 P/S

They've got a bunch of intangible assets, aren't making profits, and their revenue isn't looking good. Honestly, I'm not sure what to do with companies like these, so I usually just pass on them.

But seeing that 88% of the company is owned by itself is always tempting. It suggests the company could keep going for a while without needing more investors to pitch in money.

I sort of wish I knew how to figure out the value of medical companies.

Oodash Group

• Software
• 0,17 P/B
• 76% Own Equity
• 0,12 P/E
• 0,16 P/S

Apart from the intangible assets, this company could be really good if they start making profits and if their revenue keeps going strong.

Having a lot of their own money tied up in the company, along with impressive revenue, are both really positive signs. I just wish they were making a profit and had some physical assets.

I might hold off on this company for now, but I'm still very curious about it.

Zenith Energy

• Energy
• 0,125 P/B
• 32% Own Equity
• −5,73 P/E
• 42,93 P/S

This oil and gas company has a low book value, which sounds good. But their equity amount is barely okay, they're not making any profits, and their revenue is really low.

If I were ever going to invest in this company, it would be because their assets, like oil and gas, are probably easy to see and touch. Hopefully, they could sell them or use them to make money.

But for now, I'm going to pass on this one.

Romerike sparebank

• Bank
• 0,2 P/B 1 P/B
• 12% Own Equity

It's frustrating when my screener gets it wrong, especially with banking stocks because I might be interested in them. But since I'm not sure how to figure out if they're making money, the book value is usually what I look at most.

But having a Price-to-Book ratio of just 1 isn't enough to make me want to buy it.

For next scanning session

I usually keep my options open and look at a lot of different companies because I might discover new industries that catch my eye. But I've noticed that I always end up skipping health care companies, so maybe it would be better to just avoid them altogether in the future.

If I could sort the companies by tangible book value, it might help me go through the list faster since that's mainly what I focus on.

If that's not possible yet, maybe I should spend more time learning about growth companies since I noticed there are quite a few of them in this list.

I might consider adding another important ratio besides just looking at the book value, like the own equity. I know I might miss out on some interesting stocks this way, but own equity is such a valuable ratio to consider. It could really pay off in the end.

Related article: Basic Guide: How to Value Real Estate Stocks