In this article, we will discuss the 5 most valuable Nordic companies in the world. If you want to read our detailed analysis of these companies, go directly to 15 Most Valuable Nordic Companies in the World.
5. Nordea Bank Abp (OTC:NRDBY)
Market Capitalization: $51.99B
Country of Origin: Sweden
Nordea is a financial services group based in Finland. The company currently serves around 9.3 million people. Nordea Bank Abp (OTCMKTS: NRDBY) has four business areas – business banking, personal banking, asset and wealth management, and large corporates. Nordea (OTCMKTS: NRDBY) has subsidiaries in countries like Helsinki, Denmark, Finland, Latvia, Lithuania, Russia, and Malta, to name a few. Despite the problems caused by the COVID-19 pandemic, Nordea (OTCMKTS: NRDBY) has raised its expected growth of the year by 3.5%.
4. AB Volvo (publ) (OTC:VLVLY)
Market Capitalization: $55.835 B
Country of Origin: Sweden
Volvo, the Swedish luxury automobile company, secures the fourth position on our list of the 15 most valuable Nordic companies in the world. AB Volvo (publ) (OTCMKTS: VLVLY) manufactures station wagons, sedans, hatchbacks, and other types of vehicles. Volvo’s (OTCMKTS: VLVLY) cars are hailed as solidly built and safe. Due to the pandemic, Volvo (OTCMKTS: VLVLY) has cautioned towards a global chip shortage in the near future.
3. Atlas Copco AB (OTC:ATLKY)
Market Capitalization: $74.184B
Country of Origin: Sweden
Atlas Copco secures the third position on our list of the 15 most valuable Nordic companies in the world. Atlas Copco AB (OTCMKTS: ATLKY) is one of the leading manufacturers of industrial equipment and assembly systems in the world. Atlas Copco (OTCMKTS: ATLKY) aims to provide sustainable solutions to a wide range of industrial problems, including the production of pneumatic and demolition tools. The company recorded a 0.94% year-on-year revenue growth due to increased order volumes for industrial equipment in the second quarter of 2021.
2. Equinor ASA (NYSE:EQNR)
Market Capitalization: $84.37B
Country of Origin: Norway
On the second spot on our list of the 15 most valuable Nordic companies in the world is Equinor ASA (NYSE: EQNR). Ranked as the 169th largest company in the world by the Forbes Global 2000 in 2020, Equinor (NYSE: EQNR) is a state-owned multinational energy company with its operations mainly focusing on petroleum and additional investments in the renewable energy market. Equinor (NYSE: EQNR) currently employs over 20,000 people with operations in more than 30 countries worldwide.
Massif Capital, an investment management firm, published its second-quarter 2021 investor letter and mentioned Equinor ASA (NYSE: EQNR). Here‘s what the fund said:
“We currently have two oil-related positions in our portfolio and believe the oil opportunity set is ripe. As one might expect, both positions, (including Equinor: EQNR) performed well during the second quarter, given the steady march higher that oil has made in recent months. We maintain a positive outlook for both companies, although, importantly, our posture is not predicated on an expectation for continued oil price appreciation. This is not because of our inability to imagine scenarios where that does occur, but more out of an abundance of caution for what is a highly volatile commodity that at current price levels should be more than sufficient to generate ample free cash flow for any investable oil firm.
In the future, we expect both firms in the portfolio to generate significant free cash flow and expect EQNR to reinvest that free cash flow into a combination of offshore oil and wind opportunities with high rates of return. The path forward for AOI is more complicated and does warrant a few comments.”
1. Novo Nordisk A/S (NYSE:NVO)
Market Capitalization: $221.864B
Country of Origin: Denmark
The Danish multinational company lands the first position on our list of the 15 most valuable Nordic companies in the world. As a leading pharmaceutical company, Novo Nordisk (NYSE: NVO) has seen tremendous growth in the last year, with its market cap rising from $163.07B in 2020 to $221.86B in 2021. Novo Nordisk (NYSE: NVO) is working towards creating novel treatments for chronic diseases affecting millions around the world. Novo Nordisk (NYSE: NVO) is responsible for the production of 50% of the world’s insulin supply and conducts clinical trials in over 50 countries.
LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter and mentioned Novo Nordisk (NYSE: NVO). Here‘s what the fund said:
“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. millions of people need daily injections of insulin to stay alive54, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.
The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.”
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