Stock Analysis

October 2024's Estimated Value Opportunities on the SIX Swiss Exchange

SWX:KOMN
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The Swiss market experienced a modest decline recently as investors processed regional economic data and anticipated the European Central Bank's upcoming monetary policy announcement. In this environment of cautious trading, identifying undervalued stocks on the SIX Swiss Exchange involves looking for companies with strong fundamentals that may have been overlooked due to broader market fluctuations.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

NameCurrent PriceFair Value (Est)Discount (Est)
Swissquote Group Holding (SWX:SQN)CHF306.00CHF563.9145.7%
Georg Fischer (SWX:GF)CHF59.10CHF109.9146.2%
lastminute.com (SWX:LMN)CHF18.90CHF29.2835.5%
Julius Bär Gruppe (SWX:BAER)CHF52.94CHF104.1649.2%
Komax Holding (SWX:KOMN)CHF112.80CHF201.8944.1%
Clariant (SWX:CLN)CHF12.45CHF21.4642%
Comet Holding (SWX:COTN)CHF285.00CHF525.4145.8%
SGS (SWX:SGSN)CHF95.92CHF150.7836.4%
Montana Aerospace (SWX:AERO)CHF18.30CHF31.6042.1%
Sensirion Holding (SWX:SENS)CHF66.80CHF117.3543.1%

Click here to see the full list of 19 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Komax Holding (SWX:KOMN)

Overview: Komax Holding AG, with a market cap of CHF580.33 million, operates in the automated wire processing industry through its subsidiaries.

Operations: The company's revenue is primarily derived from its Wire Processing segment, which generated CHF663.72 million.

Estimated Discount To Fair Value: 44.1%

Komax Holding is trading at CHF112.8, significantly below its estimated fair value of CHF201.89, indicating it may be undervalued based on cash flows. Despite recent challenges with declining revenue and net income in the first half of 2024, earnings are forecast to grow substantially at 54.52% annually over the next three years, outpacing the Swiss market's growth rate. However, profit margins have decreased to 0.9%, and dividend coverage remains weak at 2.66%.

SWX:KOMN Discounted Cash Flow as at Oct 2024
SWX:KOMN Discounted Cash Flow as at Oct 2024

Temenos (SWX:TEMN)

Overview: Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide, with a market cap of CHF4.65 billion.

Operations: The company's revenue is derived from two main segments: Product, contributing $879.99 million, and Services, accounting for $132.98 million.

Estimated Discount To Fair Value: 19.4%

Temenos, trading at CHF63.6, is undervalued relative to its estimated fair value of CHF78.88. Its earnings are projected to grow 14.36% annually, surpassing the Swiss market average of 11.6%. Despite a high debt level, Temenos has completed a CHF200 million share buyback and is considering selling its fund management unit for EUR600 million to bolster financial flexibility. Recent executive appointments aim to enhance technological innovation and expand global reach through cloud-based platforms and AI solutions.

SWX:TEMN Discounted Cash Flow as at Oct 2024
SWX:TEMN Discounted Cash Flow as at Oct 2024

u-blox Holding (SWX:UBXN)

Overview: u-blox Holding AG develops, manufactures, and markets products and services for GPS/GNSS satellite positioning systems across automotive, industrial, and consumer markets globally, with a market cap of CHF586.06 million.

Operations: The company's revenue from Wireless Communications Equipment amounts to CHF365.79 million.

Estimated Discount To Fair Value: 19.4%

u-blox Holding, trading at CHF78.2, is priced below its estimated fair value of CHF97.07, offering potential value based on cash flows. Despite a recent net loss and shareholder dilution, the company is forecasted to achieve profitability within three years with earnings expected to grow significantly. Recent product innovations like the X20 GNSS platform and strategic partnerships highlight its commitment to expanding in high-precision positioning and IoT markets, potentially boosting future revenue growth beyond Swiss market averages.

SWX:UBXN Discounted Cash Flow as at Oct 2024
SWX:UBXN Discounted Cash Flow as at Oct 2024

Where To Now?

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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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