Undiscovered Swiss Gems To Explore In October 2024

Simply Wall St · 10/18 04:08

The Swiss market has shown resilience, rebounding from a sluggish start as the European Central Bank's interest rate cut provided a boost, with the SMI index closing up by 0.91%. Amidst these broader economic shifts and a narrowing trade surplus, investors may find opportunities in lesser-known small-cap stocks that could benefit from current market dynamics.

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% ★★★★★★
naturenergie holding NA 17.32% 34.71% ★★★★★★
TX Group 0.93% -1.67% 7.21% ★★★★★★
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.

Here we highlight a subset of our preferred stocks from the screener.

APG|SGA (SWX:APGN)

Simply Wall St Value Rating: ★★★★★☆

Overview: APG|SGA SA is a company that offers advertising services mainly in Switzerland and Serbia, with a market capitalization of CHF597.53 million.

Operations: APG|SGA generates revenue of CHF329.12 million through the acquisition, sale, and management of advertising spaces.

APG|SGA, a Swiss media company, showcases a compelling financial profile with its debt-free status over the past five years and positive free cash flow. Despite earnings declining by 6% annually over the last half-decade, recent performance shows promise with net income reaching CHF 11.85 million for the first half of 2024, up from CHF 10.52 million in the previous year. The stock trades at approximately 41% below estimated fair value, suggesting potential undervaluation. While its earnings growth of nearly 19% last year lagged behind industry averages, APG|SGA's high-quality earnings and profitability offer a solid foundation for future prospects.

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

Burkhalter Holding (SWX:BRKN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Burkhalter Holding AG, with a market cap of CHF977.63 million, operates through its subsidiaries to deliver electrical engineering services primarily to the construction sector in Switzerland.

Operations: The primary revenue stream for Burkhalter Holding AG is electrical engineering services, generating CHF1.18 billion. The company's financial performance can be analyzed through its net profit margin, which reflects the efficiency of its operations and cost management.

Burkhalter Holding, a notable player in the Swiss market, recently reported half-year revenue of CHF 570.3 million, up from CHF 529.27 million last year. Net income reached CHF 23.3 million compared to CHF 21.21 million previously, reflecting a solid performance with basic earnings per share at CHF 2.19 versus CHF 2.04 prior year. Despite its high net debt to equity ratio of 52.9%, interest payments are comfortably covered by EBIT at a factor of 46x, indicating financial stability amidst rising debt levels over five years from 17% to nearly 90%. Earnings growth outpaced the industry average with a robust increase of over ten percent last year.

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

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG is involved 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 CHF361.29 million.

Operations: V-ZUG Holding AG generates revenue primarily from its Household Appliances segment, amounting to CHF571.35 million. The company's net profit margin is not specified, but it is crucial for assessing profitability and cost efficiency in their operations.

V-ZUG, a Swiss appliance manufacturer, showcases impressive growth with earnings surging 89.2% over the past year, outpacing the Consumer Durables industry. The company is debt-free now, a significant improvement from five years ago when its debt to equity ratio was 22.4%. Despite reporting CHF 284 million in sales for the first half of 2024—down from CHF 298 million last year—net income nearly doubled to CHF 8.73 million. Trading at about 81.5% below estimated fair value and with high-quality earnings, V-ZUG seems poised for further growth as it forecasts annual earnings expansion of approximately 38.68%.

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

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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.