Stock Analysis

3 Growth Companies On SIX Swiss Exchange With Up To 51% ROE

SWX:PGHN
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Over the last 7 days, the Swiss market has risen 2.4%, and in the past year, it has climbed 10%, with earnings forecast to grow by 12% annually. In this favorable environment, growth companies with high insider ownership can offer compelling opportunities due to their potential for strong returns on equity (ROE).

Top 10 Growth Companies With High Insider Ownership In Switzerland

NameInsider OwnershipEarnings Growth
Stadler Rail (SWX:SRAIL)14.5%24.1%
VAT Group (SWX:VACN)10.2%22.5%
Straumann Holding (SWX:STMN)32.7%21.7%
Swissquote Group Holding (SWX:SQN)11.4%12.6%
LEM Holding (SWX:LEHN)29.9%18.4%
Temenos (SWX:TEMN)21.8%14.3%
Partners Group Holding (SWX:PGHN)17%14.5%
Leonteq (SWX:LEON)12.7%35.1%
Sensirion Holding (SWX:SENS)20.7%104.7%
Kudelski (SWX:KUD)37.5%121.7%

Click here to see the full list of 11 stocks from our Fast Growing SIX Swiss Exchange Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Partners Group Holding (SWX:PGHN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Partners Group Holding AG is a private equity firm specializing in direct, secondary, and primary investments across private equity, real estate, infrastructure, and debt with a market cap of CHF33.13 billion.

Operations: Revenue segments for Partners Group Holding AG include CHF1.19 billion from Private Equity, CHF254.90 million from Infrastructure, CHF218.90 million from Private Credit, and CHF190.90 million from Real Estate.

Insider Ownership: 17%

Return On Equity Forecast: 51% (2027 estimate)

Partners Group Holding, a Swiss investment management firm, exhibits significant growth potential with forecasted annual earnings growth of 14.5%, outpacing the Swiss market's 11.7%. Despite high debt levels and a dividend yield of 3.07% that isn't well covered by earnings, the company's return on equity is projected to be very high at 51.1% in three years. Recent activities include presenting at major investment conferences and participating in due diligence for a potential $700-$900 million buyout of Lighthouse Learnings from KKR & Co.

SWX:PGHN Earnings and Revenue Growth as at Sep 2024
SWX:PGHN Earnings and Revenue Growth as at Sep 2024

Straumann Holding (SWX:STMN)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Straumann Holding AG, with a market cap of CHF22.15 billion, offers tooth replacement and orthodontic solutions on a global scale.

Operations: Straumann Holding AG generates revenue from various segments, including Sales NAM (CHF800.14 million), Operations (CHF1.26 billion), Sales APAC (CHF540.74 million), Sales EMEA (CHF1.20 billion), and Sales LATAM (CHF282.34 million).

Insider Ownership: 32.7%

Return On Equity Forecast: 23% (2027 estimate)

Straumann Holding AG, a growth company with high insider ownership, has forecasted annual earnings growth of 21.7%, significantly outpacing the Swiss market's 11.7%. Recent updates include a low double-digit organic revenue growth outlook for 2024 and management changes aimed at enhancing operational efficiency. Despite improved earnings per share from CHF 1.29 to CHF 1.44, profit margins have declined from last year’s figures. The company's revenue is projected to grow faster than the Swiss market but remains highly volatile in share price movements.

SWX:STMN Earnings and Revenue Growth as at Sep 2024
SWX:STMN Earnings and Revenue Growth as at Sep 2024

VAT Group (SWX:VACN)

Simply Wall St Growth Rating: ★★★★★☆

Overview: VAT Group AG develops, manufactures, and supplies vacuum valves, multi-valve units, vacuum modules, and edge-welded metal bellows internationally and has a market cap of CHF12.89 billion.

Operations: The company's revenue segments include Valves (CHF783.51 million) and Global Service (CHF163.83 million).

Insider Ownership: 10.2%

Return On Equity Forecast: 41% (2027 estimate)

VAT Group is forecast to achieve annual earnings growth of 22.5%, significantly outpacing the Swiss market's 11.7%. Revenue is projected to grow at 18.3% per year, faster than the market average but below 20%. Recent earnings for H1 2024 showed a slight dip in sales to CHF 449.61 million, though net income rose to CHF 94 million from CHF 84.2 million a year ago. The stock trades at a discount of approximately 22.7% below its estimated fair value but has experienced high volatility recently.

SWX:VACN Earnings and Revenue Growth as at Sep 2024
SWX:VACN Earnings and Revenue Growth as at Sep 2024

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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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