3 Undervalued Stocks On SIX Swiss Exchange With Up To 43.4% Intrinsic Discount

The Switzerland market ended slightly up on Monday after moving in a tight range above the flat line right through the day's session. Investors appeared a bit reluctant to make significant moves while awaiting some crucial economic data including reports on UK and US inflation, and GDP data from several countries. In such cautious market conditions, identifying undervalued stocks can offer opportunities for investors seeking potential value. This article highlights three stocks on the SIX Swiss Exchange that are currently trading at intrinsic discounts of up to 43.4%.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
LEM Holding (SWX:LEHN)	CHF1170.00	CHF1823.25	35.8%
Georg Fischer (SWX:GF)	CHF62.10	CHF111.87	44.5%
Burckhardt Compression Holding (SWX:BCHN)	CHF584.00	CHF963.29	39.4%
Swissquote Group Holding (SWX:SQN)	CHF282.00	CHF425.87	33.8%
Clariant (SWX:CLN)	CHF12.25	CHF21.54	43.1%
lastminute.com (SWX:LMN)	CHF19.20	CHF30.02	36%
Gurit Holding (SWX:GURN)	CHF42.25	CHF72.91	42.1%
SGS (SWX:SGSN)	CHF91.62	CHF144.33	36.5%
Dätwyler Holding (SWX:DAE)	CHF177.40	CHF251.48	29.5%
Arbonia (SWX:ARBN)	CHF11.98	CHF21.16	43.4%

Click here to see the full list of 20 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Arbonia (SWX:ARBN)

Overview: Arbonia AG, with a market cap of CHF 830.83 million, supplies building components in Switzerland, Germany, and internationally.

Operations: Arbonia's revenue segments include CHF 501.56 million from Doors (Including Sanitary Equipment) and CHF 3.07 million from Corporate Services.

Estimated Discount To Fair Value: 43.4%

Arbonia is trading at CHF11.98, significantly below its estimated fair value of CHF21.16, representing a 43.4% discount. Analysts agree that the stock price could rise by 20.2%. While revenue growth is forecast at 9% annually, which is higher than the Swiss market's average of 4.5%, the company's Return on Equity in three years is expected to be low at 3.8%. Arbonia's earnings are projected to grow substantially by over 100% per year and it’s expected to become profitable within three years, indicating strong cash flow potential despite current undervaluation concerns.

• Upon reviewing our latest growth report, Arbonia's projected financial performance appears quite optimistic.
• Navigate through the intricacies of Arbonia with our comprehensive financial health report here.

Partners Group Holding (SWX:PGHN)

Overview: Partners Group Holding AG is a private equity firm specializing in direct, secondary, and primary investments across private equity, real estate, infrastructure, and debt with a market cap of CHF29.47 billion.

Operations: The company's revenue segments are CHF1.17 billion from Private Equity, CHF379.20 million from Infrastructure, CHF211.30 million from Private Credit, and CHF186.90 million from Real Estate.

Estimated Discount To Fair Value: 13.4%

Partners Group Holding (CHF1134.5) is trading at a 13.4% discount to its estimated fair value of CHF1310.01, suggesting it may be undervalued based on cash flows. Despite a high level of debt, the company’s revenue and earnings are forecast to grow at 14.1% and 13.5% per year respectively, outpacing the Swiss market averages. Recent M&A discussions involving Lighthouse Learnings could further enhance growth prospects if successful, though the dividend coverage remains weak at 3.44%.

• Our earnings growth report unveils the potential for significant increases in Partners Group Holding's future results.
• Click here and access our complete balance sheet health report to understand the dynamics of Partners Group Holding.

Straumann Holding (SWX:STMN)

Overview: Straumann Holding AG, with a market cap of CHF17.91 billion, offers tooth replacement and orthodontic solutions globally.

Operations: Straumann Holding AG generates revenue from various regions, including CHF1.20 billion from operations, CHF451.27 million from sales in Asia Pacific (APAC), CHF793.05 million from North America (NAM), CHF265.82 million from Latin America (LATAM), and CHF1.17 billion from Europe, Middle East and Africa (EMEA).

Estimated Discount To Fair Value: 20%

Straumann Holding (CHF112.35) is trading at a 20% discount to its estimated fair value of CHF140.4, indicating it is undervalued based on cash flows. Despite a decline in profit margins from 18.7% to 10.2%, earnings are forecast to grow significantly at 20.84% per year, outpacing the Swiss market's average growth rate of 9.1%. However, large one-off items have impacted financial results, which may affect the quality of earnings reported.

• Our comprehensive growth report raises the possibility that Straumann Holding is poised for substantial financial growth.
• Take a closer look at Straumann Holding's balance sheet health here in our report.

Turning Ideas Into Actions

• Discover the full array of 20 Undervalued SIX Swiss Exchange Stocks Based On Cash Flows right here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

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