Stock Analysis

Top Growth Companies With High Insider Ownership On SIX Swiss Exchange August 2024

SWX:ARBN
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The Switzerland market ended on a dismal note on Friday with stocks falling lower and lower as the session progressed amid fears the U.S. could fall into a recession. Investors digested Swiss consumer price inflation data, and a slew of quarterly earnings updates, leading to significant losses in major indices. In such uncertain times, identifying growth companies with high insider ownership can offer some reassurance to investors. Companies where insiders hold substantial shares often indicate confidence in the firm's prospects, making them worth considering even amidst broader market volatility.

Top 10 Growth Companies With High Insider Ownership In Switzerland

NameInsider OwnershipEarnings Growth
Stadler Rail (SWX:SRAIL)14.5%22.2%
VAT Group (SWX:VACN)10.2%22.9%
Straumann Holding (SWX:STMN)32.7%20.8%
LEM Holding (SWX:LEHN)29.9%18.5%
Swissquote Group Holding (SWX:SQN)11.4%13.8%
Temenos (SWX:TEMN)17.4%14.2%
INFICON Holding (SWX:IFCN)10.3%10.5%
SHL Telemedicine (SWX:SHLTN)17.9%96.2%
Sensirion Holding (SWX:SENS)20.7%80%
Arbonia (SWX:ARBN)28.8%100.1%

Click here to see the full list of 13 stocks from our Fast Growing SIX Swiss Exchange Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Arbonia (SWX:ARBN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arbonia AG, with a market cap of CHF850.24 million, supplies building components in Switzerland, Germany, and internationally.

Operations: The company's revenue segments include CHF501.56 million from Doors (Including Sanitary Equipment) and CHF3.07 million from Corporate Services.

Insider Ownership: 28.8%

Earnings Growth Forecast: 100.1% p.a.

Arbonia is forecast to become profitable over the next three years, with earnings expected to grow 100.06% per year, outpacing the Swiss market's average growth. Although its revenue growth of 9% per year is slower than 20%, it still surpasses the Swiss market's 4.8%. However, Arbonia's Return on Equity is projected to be low at 3.8% in three years, which might concern some investors despite its strong insider ownership and positive profit outlook.

SWX:ARBN Ownership Breakdown as at Aug 2024
SWX:ARBN Ownership Breakdown as at Aug 2024

Leonteq (SWX:LEON)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Leonteq AG offers structured investment products and long-term savings and retirement solutions across Switzerland, Europe, and Asia including the Middle East, with a market cap of CHF451.01 million.

Operations: Leonteq AG generates revenue primarily from its brokerage segment, amounting to CHF256.88 million.

Insider Ownership: 12.7%

Earnings Growth Forecast: 50.5% p.a.

Leonteq is trading at 79.3% below its estimated fair value, indicating potential undervaluation. Despite a significant drop in profit margins from 34.2% to 8%, the company's earnings are forecast to grow substantially at 50.5% per year, outpacing the Swiss market's growth rate of 9.1%. However, its Return on Equity is projected to be low at 11.2% in three years, and dividends are not well covered by free cash flows, raising sustainability concerns.

SWX:LEON Ownership Breakdown as at Aug 2024
SWX:LEON Ownership Breakdown as at Aug 2024

Sensirion Holding (SWX:SENS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sensirion Holding AG, with a market cap of CHF1.27 billion, develops, produces, sells, and services sensor systems, modules, and components globally through its subsidiaries.

Operations: The company's revenue primarily comes from sensor systems, modules, and components, amounting to CHF233.17 million.

Insider Ownership: 20.7%

Earnings Growth Forecast: 80% p.a.

Sensirion Holding, with substantial insider ownership, is forecast to grow earnings by 79.98% annually and become profitable within three years, outpacing the Swiss market's growth rate of 4.8%. Despite trading at a discount of 12.7% below its estimated fair value and having no recent insider trading activity, its revenue growth projection of 13.3% per year is slower than the desired 20%. The company's Return on Equity is expected to be low at 10.7%, and its share price has been highly volatile over the past three months.

SWX:SENS Earnings and Revenue Growth as at Aug 2024
SWX:SENS Earnings and Revenue Growth as at Aug 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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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