3 Stocks On SIX Swiss Exchange Estimated To Be Trading At Up To 35.5% Discount

The Swiss market recently experienced a mixed session, with the benchmark SMI closing slightly down by 0.21%, reflecting a day of tight trading ranges and varied performances across sectors. In such an environment, identifying undervalued stocks can present unique opportunities for investors seeking to capitalize on potential discounts in the market.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
Swissquote Group Holding (SWX:SQN)	CHF305.60	CHF563.26	45.7%
Georg Fischer (SWX:GF)	CHF58.55	CHF109.65	46.6%
lastminute.com (SWX:LMN)	CHF17.90	CHF29.05	38.4%
Julius Bär Gruppe (SWX:BAER)	CHF53.88	CHF104.32	48.4%
Komax Holding (SWX:KOMN)	CHF113.20	CHF201.95	43.9%
Clariant (SWX:CLN)	CHF12.38	CHF21.40	42.1%
Comet Holding (SWX:COTN)	CHF281.00	CHF525.08	46.5%
SGS (SWX:SGSN)	CHF97.32	CHF150.94	35.5%
Montana Aerospace (SWX:AERO)	CHF17.98	CHF31.56	43%
Sensirion Holding (SWX:SENS)	CHF65.40	CHF117.50	44.3%

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

Let's dive into some prime choices out of the screener.

Barry Callebaut (SWX:BARN)

Overview: Barry Callebaut AG, along with its subsidiaries, manufactures and sells chocolate and cocoa products, with a market cap of CHF8.37 billion.

Operations: The company's revenue segments include Global Cocoa, which generated CHF5.31 billion.

Estimated Discount To Fair Value: 33.1%

Barry Callebaut is trading at CHF1530, significantly below its estimated fair value of CHF2287.69, indicating it is undervalued based on cash flows. Despite high-quality earnings and expected revenue growth of 6.6% per year, the company's debt coverage by operating cash flow remains a concern. Earnings are projected to grow 25.93% annually, outpacing the Swiss market's growth rate but with a low forecasted return on equity of 14.8%.

• Our growth report here indicates Barry Callebaut may be poised for an improving outlook.
• Click to explore a detailed breakdown of our findings in Barry Callebaut's balance sheet health report.

SGS (SWX:SGSN)

Overview: SGS SA offers inspection, testing, and verification services across Europe, Africa, the Middle East, the Americas, and the Asia Pacific with a market cap of CHF18.14 billion.

Operations: The company's revenue segments include Business Assurance, which generated CHF755 million, with a Segment Adjustment of CHF5.92 billion.

Estimated Discount To Fair Value: 35.5%

SGS is trading at CHF97.32, considerably below its estimated fair value of CHF150.94, suggesting undervaluation based on cash flows. Despite a high debt level and a dividend not well covered by earnings, SGS's earnings are projected to grow 12.5% annually, surpassing the Swiss market rate. Recent half-year results show stable sales but slightly decreased net income compared to last year, with basic EPS from continuing operations at CHF1.44 down from CHF1.47.

• The analysis detailed in our SGS growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of SGS.

Temenos (SWX:TEMN)

Overview: Temenos AG develops, markets, and sells integrated banking software systems to financial institutions globally, with a market cap of CHF4.63 billion.

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

Estimated Discount To Fair Value: 25.7%

Temenos, trading at CHF63.45, is significantly undervalued with its fair value estimated at CHF85.36. Despite a high debt level, its earnings are expected to grow 14.4% annually, outpacing the Swiss market's 11.7%. Recent executive changes aim to enhance technological innovation and global reach through AI-driven solutions and a scalable cloud platform. The company completed a CHF200 million share buyback and is considering selling its fund management unit for EUR600 million to strengthen financial flexibility.

• Upon reviewing our latest growth report, Temenos' projected financial performance appears quite optimistic.
• Take a closer look at Temenos' balance sheet health here in our report.

Next Steps

• Delve into our full catalog of 19 Undervalued SIX Swiss Exchange Stocks Based On Cash Flows here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
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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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