Exploring Switzerland's Undiscovered Gems for October 2024

Simply Wall St · 10/16 04:03

The Switzerland market recently experienced a modest decline, with the SMI index ending down 0.33% as investors processed regional economic data and awaited the European Central Bank's monetary policy announcement. In this environment of fluctuating indices and cautious sentiment, identifying stocks that demonstrate resilience and potential for growth can be particularly valuable, making it an opportune time to explore some of Switzerland's lesser-known yet promising companies.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
IVF Hartmann Holding NA 0.24% 0.63% ★★★★★★
TX Group 0.93% -1.67% 7.21% ★★★★★★
naturenergie holding NA 17.32% 34.71% ★★★★★★
Datacolor NA 3.59% 30.14% ★★★★★★
Elma Electronic 36.60% 3.13% 3.10% ★★★★★★
Compagnie Financière Tradition 47.15% 1.91% 11.44% ★★★★★☆
Vaudoise Assurances Holding NA 1.52% 1.85% ★★★★★☆
Procimmo Group 157.49% 0.65% 4.94% ★★★★☆☆
lastminute.com 42.65% 4.93% 3.11% ★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis 3.00% -10.81% -16.31% ★★★★☆☆

Click here to see the full list of 18 stocks from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Burkhalter Holding (SWX:BRKN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Burkhalter Holding AG, with a market cap of CHF972.32 million, operates through its subsidiaries to deliver electrical engineering services to the construction sector in Switzerland.

Operations: With revenue of CHF1.18 billion from electrical engineering services, Burkhalter Holding AG focuses on the construction sector in Switzerland.

Burkhalter Holding, a notable player in Switzerland's construction sector, has displayed solid financial performance with earnings growth of 10.3% over the past year, outpacing the industry average of 8.7%. The company reported a revenue increase to CHF 570.3 million for the first half of 2024 and net income rose to CHF 23.3 million. Despite being dropped from the S&P Global BMI Index recently, Burkhalter's earnings per share improved to CHF 2.19 from CHF 2.04 last year, indicating resilience amidst challenges like its high net debt-to-equity ratio of 52.9%.

SWX:BRKN Debt to Equity as at Oct 2024
SWX:BRKN Debt to Equity as at Oct 2024

Compagnie Financière Tradition (SWX:CFT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide, with a market cap of CHF 1.25 billion.

Operations: The company generates revenue primarily from three regions: Europe, Middle East and Africa (CHF 452.85 million), Americas (CHF 352.67 million), and Asia-Pacific (CHF 273.16 million). The net profit margin reflects the company's profitability after accounting for all expenses, taxes, and costs associated with its operations.

Compagnie Financière Tradition, a Swiss financial entity, showcases robust performance with earnings growth of 16.1% over the past year, outpacing the Capital Markets industry by a significant margin. The debt-to-equity ratio has impressively decreased from 75.7% to 47.1% in five years, indicating improved financial health. Recent half-year results revealed revenue of CHF 538 million and net income climbing to CHF 60 million from CHF 51 million last year, reflecting strong operational momentum despite shareholder dilution concerns.

SWX:CFT Earnings and Revenue Growth as at Oct 2024
SWX:CFT Earnings and Revenue Growth as at Oct 2024

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG specializes in the development, manufacture, marketing, sale, and servicing of kitchen and laundry appliances for private households both in Switzerland and internationally, with a market capitalization of CHF366.43 million.

Operations: V-ZUG Holding AG generates revenue primarily from its Household Appliances segment, which contributed CHF571.35 million.

V-ZUG stands out with its robust financial health, being entirely debt-free compared to five years ago when its debt-to-equity ratio was 22.4%. Despite a dip in sales from CHF 298.15 million to CHF 284.08 million for the half year ending June 2024, net income impressively rose from CHF 4.33 million to CHF 8.73 million, doubling basic earnings per share from CHF 0.67 to CHF 1.36. Trading at a significant discount of about 81% below estimated fair value, V-ZUG's earnings growth of over 89% last year notably surpasses industry averages and forecasts suggest continued strong growth at around nearly four times the industry rate annually going forward.

SWX:VZUG Debt to Equity as at Oct 2024
SWX:VZUG Debt to Equity as at Oct 2024

Summing It All Up

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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.