Exploring Undiscovered Swiss Stocks July 2024

In recent trading sessions, the Swiss stock market has experienced fluctuations with a general trend of cautious trading among investors, influenced by global economic signals and interest rate speculations. The SMI index's movements reflect this tentativeness, closing slightly lower amidst varied performances across major companies. In such a market environment, uncovering potential investment opportunities requires focusing on fundamentals and the ability to identify stocks that may benefit from current economic conditions or sector-specific trends.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
StarragTornos Group	12.77%	-2.98%	29.42%	★★★★★★
APG|SGA	NA	1.12%	-16.11%	★★★★★★
TX Group	0.96%	-2.25%	15.99%	★★★★★★
IVF Hartmann Holding	NA	1.26%	-4.29%	★★★★★★
Datacolor	NA	3.59%	30.14%	★★★★★★
Compagnie Financière Tradition	49.32%	1.35%	11.45%	★★★★★☆
naturenergie holding	9.95%	16.32%	40.54%	★★★★★☆
SKAN Group	3.57%	40.44%	22.38%	★★★★★☆
Elma Electronic	42.57%	2.00%	-1.74%	★★★★★☆
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.

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

Compagnie Financière Tradition (SWX:CFT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Compagnie Financière Tradition SA is a global interdealer broker specializing in financial and non-financial products, with a market capitalization of CHF 1.13 billion.

Operations: The company generates revenue across various global regions, with significant contributions from the Americas (CHF 350.89 million), Asia-Pacific (CHF 271.44 million), and Europe, Middle East, and Africa (CHF 431.78 million). It operates with a consistently high gross profit margin of 100%, reflecting no cost of goods sold, while its net income margin has shown an upward trend over the years, reaching approximately 9.69% by the end of 2023.

Compagnie Financière Tradition, a lesser-known player in the financial sector, has demonstrated robust growth with earnings increasing by 11.5% annually over the last five years. Recently, it reported a revenue of CHF 983 million and net income of CHF 94 million for 2023, marking consistent performance improvements. The company's debt-to-equity ratio significantly improved from 69% to 49%, reflecting stronger financial health. Trading at a substantial discount—31% below estimated fair value—CFT shows potential as an undervalued gem in Switzerland's market landscape.

• Get an in-depth perspective on Compagnie Financière Tradition's performance by reading our health report here.

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

IVF Hartmann Holding (SWX:VBSN)

Simply Wall St Value Rating: ★★★★★★

Overview: IVF Hartmann Holding AG specializes in the distribution of medical consumer goods both domestically in Switzerland and on an international scale, with a market capitalization of CHF 316.76 million.

Operations: IVF Hartmann Holding specializes in healthcare products, focusing on areas such as wound care, infection management, and incontinence management, generating significant portions of its revenue from these segments. The company's financial structure reveals a consistent generation of gross profits with a notable gross profit margin of 54.01% as of the latest reporting period in 2024.

IVF Hartmann Holding, a notable player in the Swiss medical equipment sector, showcases robust financial health with a debt-free status and no concerns about interest coverage. The company's earnings have surged by 34.9% over the past year, significantly outpacing the industry's decline of 2.4%. Despite a historical earnings decline of 4.3% per annum over five years, IVF Hartmann maintains positive free cash flow and a price-to-earnings ratio of 20.9x, below the Swiss market average of 21.4x.

• Click to explore a detailed breakdown of our findings in IVF Hartmann Holding's health report.

• Learn about IVF Hartmann Holding's historical performance.

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG specializes in developing, manufacturing, marketing, selling, and servicing kitchen and laundry appliances for private households both domestically in Switzerland and internationally, with a market capitalization of CHF 348.43 million.

Operations: V-ZUG Holding generates revenue through the manufacture and sale of appliances, with a consistent gross profit margin around 35% in recent years. The company's costs primarily include cost of goods sold (COGS) and operating expenses, which encompass sales & marketing, general & administrative expenses, and research & development costs.

V-ZUG Holding AG, a lesser-known yet promising entity in the Swiss market, reported robust half-year earnings with net income doubling to CHF 8.73 million from CHF 4.33 million year-over-year. The company's earnings growth outpaced its industry, surging by 89.2% compared to the sector's decline of 1.2%. Trading at a significant discount—79.9% below estimated fair value—V-ZUG is debt-free and has no cash runway concerns due to its profitability, positioning it as an attractive prospect for discerning investors seeking growth and value in undiscovered markets.

• Navigate through the intricacies of V-ZUG Holding with our comprehensive health report here.

• Explore historical data to track V-ZUG Holding's performance over time in our Past section.

Taking Advantage

• Explore the 18 names from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener 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.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Looking For Alternative Opportunities?

• 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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