3 Undervalued Stocks On SIX Swiss Exchange With Discounts Up To 30.6%

The Switzerland market ended marginally down on Tuesday despite trading higher till a couple of hours past noon, as investors digested the latest batch of economic data from the European region and looked ahead to key announcements from the Federal Reserve. Amid this cautious environment, identifying undervalued stocks can be particularly rewarding for investors seeking opportunities with significant potential for growth.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
LEM Holding (SWX:LEHN)	CHF1220.00	CHF1814.37	32.8%
Swissquote Group Holding (SWX:SQN)	CHF300.80	CHF569.80	47.2%
Georg Fischer (SWX:GF)	CHF63.80	CHF112.12	43.1%
Clariant (SWX:CLN)	CHF12.93	CHF21.71	40.5%
lastminute.com (SWX:LMN)	CHF20.00	CHF30.15	33.7%
Comet Holding (SWX:COTN)	CHF346.00	CHF663.29	47.8%
Emmi (SWX:EMMN)	CHF871.00	CHF1606.37	45.8%
SGS (SWX:SGSN)	CHF93.76	CHF144.20	35%
Dätwyler Holding (SWX:DAE)	CHF173.40	CHF249.89	30.6%
Arbonia (SWX:ARBN)	CHF12.38	CHF21.17	41.5%

Click here to see the full list of 17 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Dätwyler Holding (SWX:DAE)

Overview: Dätwyler Holding AG produces and sells elastomer components for various industries including health care, mobility, connectors, general applications, and food and beverages across Europe, the Americas, Australia, and Asia with a market cap of CHF2.95 billion.

Operations: The company generates revenue primarily from Healthcare Solutions (CHF445.90 million) and Industrial Solutions (CHF679.80 million).

Estimated Discount To Fair Value: 30.6%

Dätwyler Holding AG appears undervalued based on cash flows, trading at CHF 173.4, which is 30.6% below its estimated fair value of CHF 249.89. Despite a slight dip in half-year sales to CHF 572.5 million from CHF 602.7 million last year, net income rose to CHF 38.6 million from CHF 32.1 million, with earnings per share increasing to CHF 2.27 from CHF 1.89. Earnings are forecasted to grow significantly at an annual rate of over 20%, outpacing the Swiss market's growth rate of approximately 12%.

• Upon reviewing our latest growth report, Dätwyler Holding's projected financial performance appears quite optimistic.
• Click here to discover the nuances of Dätwyler Holding with our detailed financial health report.

Straumann Holding (SWX:STMN)

Overview: Straumann Holding AG, with a market cap of CHF20.09 billion, offers tooth replacement and orthodontic solutions globally.

Operations: Straumann Holding AG's revenue is derived from various segments including Sales NAM (CHF800.14 million), Operations (CHF1.26 billion), Sales APAC (CHF540.74 million), Sales EMEA (CHF1.20 billion), and Sales LATAM (CHF282.34 million).

Estimated Discount To Fair Value: 10.3%

Straumann Holding AG, trading at CHF 126, is undervalued based on cash flows with an estimated fair value of CHF 140.51. Recent earnings for H1 2024 showed sales of CHF 1.27 billion and net income of CHF 230.37 million, up from last year’s CHF 1.14 billion and CHF 205.78 million respectively. Despite high volatility in share price, forecasted annual earnings growth at over 21% significantly outpaces the Swiss market's expected growth rate of approximately 12%.

• Our comprehensive growth report raises the possibility that Straumann Holding is poised for substantial financial growth.
• Click to explore a detailed breakdown of our findings in Straumann Holding's balance sheet health report.

Zehnder Group (SWX:ZEHN)

Overview: Zehnder Group AG, with a market cap of CHF589.19 million, develops, manufactures, and sells indoor climate systems across Europe, North America, and China.

Operations: The company's revenue segments include €299.90 million from Radiators and €399.90 million from Ventilation.

Estimated Discount To Fair Value: 11.4%

Zehnder Group, trading at CHF 54, is undervalued based on cash flows with an estimated fair value of CHF 60.97. Despite a volatile share price and lower profit margins this year (3.2% vs. 6.6%), earnings are forecast to grow significantly at 32.6% annually, outpacing the Swiss market's expected growth rate of 11.9%. Recent H1 2024 results showed a decline in sales to EUR 346.1 million from EUR 408.4 million and net income dropping to EUR 6.6 million from EUR 27 million last year.

• Our earnings growth report unveils the potential for significant increases in Zehnder Group's future results.
• Get an in-depth perspective on Zehnder Group's balance sheet by reading our health report here.

Summing It All Up

• Click this link to deep-dive into the 17 companies within our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Curious About Other Options?

• 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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