Clariant And 2 Other Companies That May Be Undervalued On The SIX Swiss Exchange

The Switzerland market ended on a firm note on Wednesday, buoyed by optimism about a potential interest rate cut by the Swiss Central Bank next month. As the SMI index gained 0.42%, investors are increasingly looking for undervalued stocks that may offer growth opportunities amid this positive sentiment. In this article, we will explore Clariant and two other companies listed on the SIX Swiss Exchange that may be undervalued in the current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
LEM Holding (SWX:LEHN)	CHF1224.00	CHF1817.12	32.6%
Swissquote Group Holding (SWX:SQN)	CHF302.00	CHF569.14	46.9%
Georg Fischer (SWX:GF)	CHF64.50	CHF112.43	42.6%
Clariant (SWX:CLN)	CHF13.15	CHF21.74	39.5%
lastminute.com (SWX:LMN)	CHF19.38	CHF29.50	34.3%
SoftwareONE Holding (SWX:SWON)	CHF15.52	CHF21.97	29.3%
Comet Holding (SWX:COTN)	CHF335.50	CHF663.74	49.5%
Emmi (SWX:EMMN)	CHF878.00	CHF1606.37	45.3%
SGS (SWX:SGSN)	CHF94.08	CHF146.08	35.6%
Dätwyler Holding (SWX:DAE)	CHF172.80	CHF249.85	30.8%

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

Let's take a closer look at a couple of our picks from the screened companies.

Clariant (SWX:CLN)

Overview: Clariant AG develops, manufactures, distributes, and sells specialty chemicals globally and has a market cap of CHF4.32 billion.

Operations: The company's revenue segments include Catalysis (CHF927 million), Care Chemicals (CHF2.22 billion), and Adsorbents & Additives (CHF1.02 billion).

Estimated Discount To Fair Value: 39.5%

Clariant AG's recent earnings report showed a decline in sales and net income, but the stock remains significantly undervalued based on discounted cash flow analysis, trading at CHF 13.15 compared to an estimated fair value of CHF 21.74. Despite high debt levels and large one-off items affecting financial results, analysts forecast strong annual profit growth of over 30%, outpacing the Swiss market's average growth rate. However, its dividend is not well covered by earnings.

• Upon reviewing our latest growth report, Clariant's projected financial performance appears quite optimistic.
• Unlock comprehensive insights into our analysis of Clariant stock in this financial health report.

Georg Fischer (SWX:GF)

Overview: Georg Fischer AG provides piping systems and casting and machining solutions across Europe, the Americas, Asia, and internationally, with a market cap of CHF5.28 billion.

Operations: The company's revenue segments include CHF1.99 billion from GF Piping Systems, CHF901 million from GF Casting Solutions, and CHF853 million from GF Machining Solutions.

Estimated Discount To Fair Value: 42.6%

Georg Fischer AG is trading at CHF 64.5, significantly below its estimated fair value of CHF 112.43, indicating it may be undervalued based on cash flows. Despite a decline in net profit margin from 6.8% to 4.6%, earnings are forecast to grow at an impressive rate of 23% per year, outpacing the Swiss market's average growth rate of 12%. However, debt coverage by operating cash flow remains a concern and the dividend track record is unstable.

• In light of our recent growth report, it seems possible that Georg Fischer's financial performance will exceed current levels.
• Navigate through the intricacies of Georg Fischer with our comprehensive financial health report here.

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 CHF17.53 billion.

Operations: The company's revenue segments include Business Assurance at CHF755 million and Segment Adjustment at CHF5.92 billion.

Estimated Discount To Fair Value: 35.6%

SGS SA is trading at CHF 94.08, well below its estimated fair value of CHF 146.08, suggesting it could be undervalued based on cash flows. Despite modest earnings growth and a high level of debt, SGS's revenue is forecast to grow faster than the Swiss market at 5.5% annually. Recent half-year results show stable sales but a slight dip in net income and earnings per share compared to the previous year, underscoring mixed performance indicators.

• The growth report we've compiled suggests that SGS' future prospects could be on the up.
• Dive into the specifics of SGS here with our thorough financial health report.

Make It Happen

• Unlock our comprehensive list of 17 Undervalued SIX Swiss Exchange Stocks Based On Cash Flows by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Interested In Other Possibilities?

• 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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