Discovering Undiscovered Gems in Switzerland This September 2024

The Switzerland market ended on a firm note on Tuesday, in line with other European markets, as a slew of stimulus measures announced by the Chinese central bank to revive growth helped underpin sentiment. The benchmark SMI ended with a gain of 83.50 points or 0.7% at 12,048.85. In such an environment, finding promising small-cap stocks that can capitalize on these positive sentiments and economic stimuli becomes crucial for investors seeking undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
IVF Hartmann Holding	NA	1.26%	-4.29%	★★★★★★
naturenergie holding	NA	17.32%	34.71%	★★★★★★
TX Group	0.93%	-1.67%	7.21%	★★★★★★
APG|SGA	NA	1.12%	-16.11%	★★★★★★
Datacolor	NA	3.59%	30.14%	★★★★★★
Elma Electronic	36.60%	3.13%	3.10%	★★★★★★
Compagnie Financière Tradition	47.15%	1.91%	11.44%	★★★★★☆
Vaudoise Assurances Holding	NA	1.52%	1.85%	★★★★★☆
lastminute.com	42.65%	4.93%	3.11%	★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis	3.00%	-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.

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

Compagnie Financière Tradition (SWX:CFT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide, with a market cap of CHF 1.20 billion.

Operations: The company generates revenue primarily from the Americas (CHF 352.67 million), Asia-Pacific (CHF 273.16 million), and Europe, Middle East, and Africa (CHF 452.85 million).

Compagnie Financière Tradition, a lesser-known Swiss financial entity, reported half-year revenue of CHF 538.34 million and net income of CHF 59.99 million as of June 2024. Earnings per share from continuing operations rose to CHF 7.98 from CHF 6.86 a year ago, showcasing solid growth. Over the past year, earnings surged by 16.1%, outpacing the Capital Markets industry’s -12.1%. The company’s debt to equity ratio improved significantly to 47.1% over five years while trading at a notable discount of approximately one-third below its estimated fair value.

• Click here and access our complete health analysis report to understand the dynamics of Compagnie Financière Tradition.

• Assess Compagnie Financière Tradition's past performance with our detailed historical performance reports.

Phoenix Mecano (SWX:PMN)

Simply Wall St Value Rating: ★★★★★★

Overview: Phoenix Mecano AG, together with its subsidiaries, manufactures and sells components for industrial customers worldwide, with a market cap of CHF 432.64 million.

Operations: Revenue segments for Phoenix Mecano AG are primarily driven by Dewertokin Technology Group (€348.00 million), Enclosure Systems (€218.16 million), and Industrial Components (€197.28 million).

Phoenix Mecano, a notable player in the electrical industry, reported sales of €382.8 million for H1 2024, down from €405.7 million last year. Net income stood at €17.2 million compared to €19.9 million previously, with basic earnings per share at €18 versus €20.8 a year ago. The company’s price-to-earnings ratio is 10.8x, significantly below the Swiss market average of 21x, indicating good value relative to peers and industry standards.

• Navigate through the intricacies of Phoenix Mecano with our comprehensive health report here.

• Learn about Phoenix Mecano's historical performance.

IVF Hartmann Holding (SWX:VBSN)

Simply Wall St Value Rating: ★★★★★★

Overview: IVF Hartmann Holding AG, with a market cap of CHF338.19 million, specializes in providing medical consumer goods both within Switzerland and internationally.

Operations: IVF Hartmann Holding AG generates revenue primarily from Infection Management (CHF54.18 million), Wound Care (CHF40.21 million), and Incontinence Management (CHF32.11 million).

IVF Hartmann Holding, a notable player in the medical equipment sector, has shown impressive earnings growth of 34.9% over the past year, outpacing the industry average of -2.4%. Trading at 88% below its estimated fair value, it offers significant upside potential. The company is debt-free and has been for five years, eliminating concerns about interest payments. Additionally, IVF Hartmann is free cash flow positive and reported a levered free cash flow of CHF 17.50M as of June 2023.

• Unlock comprehensive insights into our analysis of IVF Hartmann Holding stock in this health report.

• Explore historical data to track IVF Hartmann Holding's performance over time in our Past section.

Turning Ideas Into Actions

• Unlock more gems! Our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener has unearthed 15 more companies for you to explore.Click here to unveil our expertly curated list of 18 SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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