After a slight drop on Monday morning, the Swiss market recovered, steadily rising throughout the day and finally closing on a firm note, with several stocks posting solid gains in the last hour. Last week’s data showing a sharp rise in Swiss industrial production and increasing optimism about a Federal Reserve rate cut in September added to the sentiment. In this favorable economic climate, identifying promising small-cap stocks can offer significant growth potential. Here are three undiscovered gems in Switzerland to keep an eye on in August 2024.
Top 10 undiscovered gems with strong fundamentals in Switzerland
|
name |
Debt to equity |
Sales growth |
Profit growth |
Health assessment |
|---|---|---|---|---|
|
natural energy holding |
N/A |
17.32% |
34.71% |
★★★★★★ |
|
APG|SGA |
N/A |
1.12% |
-16.11% |
★★★★★★ |
|
TX Group |
0.96% |
-2.25% |
15.99% |
★★★★★★ |
|
IVF Hartmann Holding |
N/A |
1.26% |
-4.29% |
★★★★★★ |
|
Data color |
N/A |
3.59% |
30.14% |
★★★★★★ |
|
Elma Electronics |
36.60% |
3.13% |
3.10% |
★★★★★★ |
|
Compagnie Financière Tradition |
49.32% |
1.35% |
11.45% |
★★★★★☆ |
|
lastminute.com |
42.65% |
4.93% |
3.11% |
★★★★☆☆ |
|
Jungfrau Railway Holding |
17.74% |
3.55% |
9.25% |
★★★★☆☆ |
|
Engelberg-Trübsee-Titlis cable cars |
3.00% |
-10.81% |
-16.31% |
★★★★☆☆ |
Click here to see the full list of 18 stocks from our SIX Swiss Exchange screener “Undiscovered Gems With Strong Fundamentals.”
Here’s a quick look at some of the choices from the screener.
Simply Wall St Value Rating: ★★★★★☆
Overview: Burkhalter Holding AG, with a market capitalization of CHF 947.90 million, offers electrical engineering services for the construction industry in Switzerland through its subsidiaries.
Operations: Burkhalter Holding AG’s turnover results mainly from electrical engineering services and amounts to 1.16 billion Swiss francs.
Burkhalter Holding, a Swiss construction company, has a solid financial position with a satisfactory net debt to equity ratio of 16.7%. With the stock trading 31.5% below its estimated fair value, it appears undervalued. Last year, earnings grew 34.7%, outperforming the industry average of 8.7%. In addition, Burkhalter’s interest payments are well covered by EBIT (39.7x), indicating robust profitability and financial stability of the company.
Simply Wall St Value Rating: ★★★★★☆
Overview: Compagnie Financière Tradition SA operates as an interdealer broker for financial and non-financial products worldwide and has a market capitalization of CHF 1.15 billion.
Operations: The company generates its sales mainly in three regions: Europe, Middle East and Africa (CHF 431.78 million), the Americas (CHF 350.89 million) and Asia-Pacific (CHF 271.44 million).
Compagnie Financière Tradition (CFT) has shown promising signs over the past year, posting a 6% increase in earnings, which beats the capital markets industry average of 5.5%. The company’s debt ratio has improved significantly, falling from 69.2% to 49.3% over five years, indicating better financial health. In addition, CFT is trading at a notable 39.1% discount to its estimated fair value, offering potential for future appreciation.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Jungfraubahn Holding AG, with a market capitalization of CHF 1.15 billion, operates cog railways and winter sports facilities in the Jungfrau region in Switzerland.
Operations: Jungfraubahn Holding AG generates revenue primarily from the Jungfraujoch – TOP of Europe (CHF 188.24 million), Adventure Mountains (CHF 45.94 million) and Winter Sports (CHF 41.26 million) segments. The company has a market capitalization of CHF 1.15 billion.
Jungfraubahn Holding, a Swiss small-cap stock, has shown impressive performance. Earnings grew 81.6% last year, outperforming the transportation industry’s -8.6%. The company’s price-to-earnings ratio is 14.5, below the Swiss market average of 21.9, suggesting potential value. The net debt-to-equity ratio is satisfactory at 13%, although it has increased from 7.4% to 17.7% in five years. Earnings are expected to grow at 2.6% annually.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
Companies discussed in this article include SWX:BRKN, SWX:CFT and SWX:JFN.
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