Stock Analysis

Discovering Undiscovered Swiss Stocks with Potential in October 2024

The Swiss market has shown resilience, ending modestly higher despite geopolitical tensions and a cautious investor mood due to upcoming inflation data. In this environment, identifying promising small-cap stocks requires a keen eye for companies that can navigate uncertainties while leveraging unique growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
IVF Hartmann HoldingNA0.24%0.63%★★★★★★
TX Group0.93%-1.67%7.21%★★★★★★
naturenergie holdingNA17.32%34.71%★★★★★★
DatacolorNA3.59%30.14%★★★★★★
Elma Electronic36.60%3.13%3.10%★★★★★★
Compagnie Financière Tradition47.15%1.91%11.44%★★★★★☆
Vaudoise Assurances HoldingNA1.52%1.85%★★★★★☆
Procimmo Group157.49%0.65%4.94%★★★★☆☆
lastminute.com42.65%4.93%3.11%★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis3.00%-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 capitalization of CHF1.22 billion.

Operations: Compagnie Financière Tradition generates revenue primarily from its operations in the Americas (CHF352.67 million), Asia-Pacific (CHF273.16 million), and Europe, Middle East and Africa (CHF452.85 million).

Compagnie Financière Tradition, a notable player in the Swiss financial landscape, showcases strong performance with earnings growth of 16.1% over the past year, outpacing the industry average. The company reported half-year revenue of CHF 538.34 million and net income of CHF 59.99 million, reflecting solid profitability with basic earnings per share at CHF 7.98. Its debt to equity ratio has improved significantly from 75.7% to 47.1% over five years, indicating prudent financial management and reduced leverage risks.

SWX:CFT Earnings and Revenue Growth as at Oct 2024

naturenergie holding (SWX:NEAG)

Simply Wall St Value Rating: ★★★★★★

Overview: Naturenergie Holding AG, with a market cap of CHF1.27 billion, operates through its subsidiaries to produce, distribute, and sell electricity under the naturenergie brand both in Switzerland and internationally.

Operations: Naturenergie Holding AG generates revenue primarily from Customer-Oriented Energy Solutions (€1.15 billion) and Renewable Generation Infrastructure (€1.09 billion). The company focuses on these key segments, contributing significantly to its overall financial performance.

NEAG, a small player in Switzerland's energy sector, reported a notable earnings growth of 40.5% over the past year, outpacing the Electric Utilities industry. With no debt and a price-to-earnings ratio of 11.7x below the Swiss market average of 21.5x, it offers potential value. Recent half-year results showed net income rising to €77 million from €68 million despite sales dipping to €869 million from €973 million, reflecting efficient cost management and high-quality earnings.

SWX:NEAG Debt to Equity as at Oct 2024

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG specializes in the development, manufacture, marketing, sale, and servicing of kitchen and laundry appliances for private households both within Switzerland and internationally, with a market capitalization of CHF361.29 million.

Operations: V-ZUG generates revenue primarily from its Household Appliances segment, amounting to CHF571.35 million. The company's focus on this segment highlights its core business area and primary source of income.

With a solid reputation in the Consumer Durables sector, V-ZUG Holding has shown impressive earnings growth of 89% over the past year, outpacing industry averages. The company reported net income of CHF 8.73 million for the first half of 2024, nearly doubling from CHF 4.33 million last year, with basic earnings per share rising to CHF 1.36 from CHF 0.67. Despite being debt-free and trading at a significant discount to its estimated fair value, challenges remain as free cash flow is not yet positive and sales dipped slightly to CHF 284 million from CHF 298 million year-on-year.

SWX:VZUG Debt to Equity as at Oct 2024

Summing It All Up

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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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