3 Swiss Companies On SIX Swiss Exchange Estimated To Be 14.8% To 45.7% Below Intrinsic Value

The Swiss market experienced a volatile session, initially recovering but ultimately closing in negative territory, with the SMI index losing 0.53% amid mixed performances from major companies. In such fluctuating conditions, identifying stocks that are trading below their intrinsic value can present opportunities for investors seeking potential growth despite broader market uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
Swissquote Group Holding (SWX:SQN)	CHF303.20	CHF558.53	45.7%
Georg Fischer (SWX:GF)	CHF56.00	CHF108.29	48.3%
lastminute.com (SWX:LMN)	CHF18.18	CHF29.01	37.3%
Julius Bär Gruppe (SWX:BAER)	CHF55.18	CHF103.64	46.8%
Comet Holding (SWX:COTN)	CHF289.50	CHF525.29	44.9%
Komax Holding (SWX:KOMN)	CHF115.20	CHF202.27	43%
Clariant (SWX:CLN)	CHF12.48	CHF21.44	41.8%
SGS (SWX:SGSN)	CHF94.50	CHF150.54	37.2%
Montana Aerospace (SWX:AERO)	CHF16.30	CHF27.73	41.2%
Sensirion Holding (SWX:SENS)	CHF65.50	CHF117.45	44.2%

Click here to see the full list of 18 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

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

Dätwyler Holding (SWX:DAE)

Overview: Dätwyler Holding AG produces and sells elastomer components for various industries, including health care and mobility, across Europe, North America, South America, Australia, and Asia with a market cap of CHF2.59 billion.

Operations: The company's revenue segments include Healthcare Solutions, generating CHF445.90 million, and Industrial Solutions, contributing CHF679.80 million.

Estimated Discount To Fair Value: 35.7%

Dätwyler Holding is trading at CHF152.6, significantly below its estimated fair value of CHF237.36, highlighting potential undervaluation based on discounted cash flows. Despite a high debt level and an unstable dividend track record, its earnings are forecast to grow significantly at 27.4% annually over the next three years, outpacing the Swiss market's growth rate. Recent half-year results show increased net income to CHF38.6 million despite a decline in sales, supporting positive cash flow prospects.

• Our earnings growth report unveils the potential for significant increases in Dätwyler Holding's future results.
• Take a closer look at Dätwyler Holding's balance sheet health here in our report.

Swissquote Group Holding (SWX:SQN)

Overview: Swissquote Group Holding Ltd offers a range of online financial services to retail, affluent, and professional institutional investors globally, with a market cap of CHF4.50 billion.

Operations: The company's revenue segments include Leveraged Forex, generating CHF93.28 million, and Securities Trading, contributing CHF488.98 million.

Estimated Discount To Fair Value: 45.7%

Swissquote Group Holding is trading at CHF303.2, well below its estimated fair value of CHF558.53, suggesting undervaluation based on discounted cash flows. The company reported a significant increase in net income to CHF144.56 million for the first half of 2024, with earnings per share rising accordingly. While revenue growth is moderate at 11.1% annually, it surpasses the Swiss market average and supports solid cash flow potential despite slower-than-significant profit growth forecasts.

• Our comprehensive growth report raises the possibility that Swissquote Group Holding is poised for substantial financial growth.
• Unlock comprehensive insights into our analysis of Swissquote Group Holding stock in this financial health report.

Zehnder Group (SWX:ZEHN)

Overview: Zehnder Group AG, along with its subsidiaries, develops, manufactures, and sells indoor climate systems in Europe, North America, and China with a market cap of CHF552.09 million.

Operations: The company's revenue is primarily derived from two segments: Radiators, contributing €299.90 million, and Ventilation, generating €399.90 million.

Estimated Discount To Fair Value: 14.8%

Zehnder Group is trading at CHF50.6, below its estimated fair value of CHF59.39, indicating it may be undervalued based on cash flows. Despite a decline in profit margins from 6.6% to 3.2%, earnings are forecast to grow significantly at 32.3% annually, outpacing the Swiss market's growth rate of 11.6%. Recent reports show decreased sales (EUR346.1 million) and net income (EUR6.6 million), highlighting potential challenges amidst expected revenue growth of 4.9% annually.

• Insights from our recent growth report point to a promising forecast for Zehnder Group's business outlook.
• Delve into the full analysis health report here for a deeper understanding of Zehnder Group.

Where To Now?

• Delve into our full catalog of 18 Undervalued SIX Swiss Exchange Stocks Based On Cash Flows here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• 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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