Stock Analysis

Uncovering Swiss Treasures Burkhalter Holding And 2 Other Hidden Small Caps

SWX:VAHN
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The Swiss market recently demonstrated resilience by recovering from early losses to close slightly higher, with the benchmark SMI posting a modest gain. In this fluctuating environment, identifying small-cap stocks that show potential for growth can be particularly rewarding, as these companies often possess unique characteristics and opportunities that larger firms may not offer.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
IVF Hartmann HoldingNA0.24%0.63%★★★★★★
TX Group0.93%-1.67%7.21%★★★★★★
naturenergie holdingNA17.32%34.71%★★★★★★
DatacolorNA3.59%30.14%★★★★★★
Elma Electronic36.60%3.13%3.10%★★★★★★
Compagnie Financière Tradition47.15%1.91%11.44%★★★★★☆
Vaudoise Assurances HoldingNA1.52%1.85%★★★★★☆
Procimmo Group157.49%0.65%4.94%★★★★☆☆
lastminute.com42.65%4.93%3.11%★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis3.00%-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.

We'll examine a selection from our screener results.

Burkhalter Holding (SWX:BRKN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Burkhalter Holding AG operates through its subsidiaries to offer electrical engineering services to the construction sector in Switzerland, with a market capitalization of CHF957.46 million.

Operations: Burkhalter Holding generates revenue primarily from electrical engineering services, amounting to CHF1.18 billion.

Burkhalter Holding, a Swiss player in the construction sector, reported impressive earnings growth of 10.3% over the past year, outpacing the industry average of 8.7%. Despite trading at 6.2% below its estimated fair value, Burkhalter's debt to equity ratio has surged from 17.4% to 89.5% over five years, indicating a high debt level with a net debt to equity ratio at 52.9%. Recent half-year results showed revenue climbing to CHF570 million and net income reaching CHF23 million, reflecting solid performance despite being dropped from the S&P Global BMI Index recently.

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

naturenergie holding (SWX:NEAG)

Simply Wall St Value Rating: ★★★★★★

Overview: Naturenergie Holding AG, with a market cap of CHF1.28 billion, operates through its subsidiaries to produce, distribute, and sell electricity under the naturenergie brand in Switzerland and internationally.

Operations: Naturenergie Holding AG generates revenue primarily from Customer-Oriented Energy Solutions (€1.15 billion) and Renewable Generation Infrastructure (€1.09 billion). The company also earns from System Relevant Infrastructure, contributing €403.50 million to its revenue streams.

With a price-to-earnings ratio of 11.7x, naturenergie holding stands out in the Swiss market where the average is 21.2x, indicating potential undervaluation. The company boasts high-quality earnings and has been debt-free for over five years, which likely contributes to its strong financial health. Recent half-year results show net income rising to €77.2 million from €68.5 million last year, despite sales dipping to €868.6 million from €972.5 million, suggesting efficiency improvements or cost management as key factors in profitability growth amidst revenue challenges.

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

Vaudoise Assurances Holding (SWX:VAHN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Vaudoise Assurances Holding SA offers insurance products and services mainly in Switzerland, with a market cap of CHF1.34 billion.

Operations: The company generates revenue primarily through insurance products and services in Switzerland. It has a market capitalization of CHF1.34 billion.

Vaudoise Assurances Holding, a notable player in the Swiss market, is trading at 65.1% below its estimated fair value, indicating potential undervaluation. The company reported earnings growth of 7.1% over the past year, surpassing the insurance industry's average of 6.7%. With no debt on its books for five years and high-quality earnings, Vaudoise demonstrates financial stability. Recent half-year net income reached CHF 81 million, up from CHF 70 million last year.

SWX:VAHN Earnings and Revenue Growth as at Oct 2024
SWX:VAHN 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.

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