Stock Analysis

Three Undiscovered Swiss Gems To Enhance Your Portfolio

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The Switzerland market ended marginally down on Tuesday despite spending a good part of the day's trading session in positive territory. Investors appeared reluctant to make significant moves ahead of key inflation data from the U.S., and the European Central Bank's monetary policy announcement. In such an environment, identifying resilient stocks with strong fundamentals can be crucial for enhancing your portfolio. Here are three undiscovered Swiss gems that offer potential growth opportunities amidst current market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
naturenergie holdingNA17.32%34.71%★★★★★★
TX Group0.93%-1.67%7.21%★★★★★★
IVF Hartmann HoldingNA1.26%-4.29%★★★★★★
APG|SGANA1.12%-16.11%★★★★★★
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%★★★★★☆
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.

We're going to check out a few of the best picks from our screener tool.

APG|SGA (SWX:APGN)

Simply Wall St Value Rating: ★★★★★★

Overview: APG|SGA SA operates in the advertising sector, offering services mainly in Switzerland and Serbia, with a market cap of CHF579.56 million.

Operations: APG|SGA SA generates revenue primarily from the acquisition, sale, and management of advertising spaces, amounting to CHF327.46 million. The net profit margin is a key financial metric to consider.

APG|SGA, a Swiss advertising company, has shown a mixed performance. Despite being debt-free for the past five years and trading at 59.8% below its estimated fair value, earnings have declined by 16.1% annually over the last five years. The company's earnings growth of 14.6% in the past year lagged behind the Media industry’s 16.3%. APG|SGA remains free cash flow positive and is expected to report its First-Half 2024 results soon, providing further insights into its financial health.

SWX:APGN Debt to Equity as at Sep 2024

IVF Hartmann Holding (SWX:VBSN)

Simply Wall St Value Rating: ★★★★★★

Overview: IVF Hartmann Holding AG, with a market cap of CHF323.90 million, provides medical consumer goods in Switzerland and internationally.

Operations: The company's revenue streams include Wound Care (CHF40.21 million), Infection Management (CHF54.18 million), and Incontinence Management (CHF32.11 million).

IVF Hartmann Holding, a Swiss medical equipment company, has demonstrated notable financial resilience. Over the past year, earnings surged by 34.9%, outpacing the industry average of -2.4%. The firm boasts a price-to-earnings ratio of 21.4x, well below the industry average of 43.3x, indicating potential undervaluation. Operating debt-free for five years and consistently generating positive free cash flow further solidifies its robust financial health and operational efficiency in a competitive market.

SWX:VBSN Debt to Equity as at Sep 2024

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG develops, manufactures, markets, sells, and services kitchen and laundry appliances for private households in Switzerland and internationally with a market cap of CHF352.29 million.

Operations: V-ZUG Holding AG generates CHF571.35 million in revenue from its household appliances segment.

V-ZUG Holding, a notable player in the Consumer Durables sector, has demonstrated impressive financial health. The company reported no debt as of the latest period, a significant improvement from its 22.4% debt to equity ratio five years ago. Earnings surged by 89.2% over the past year, far outpacing industry growth of 0.2%. For the half-year ending June 2024, net income doubled to CHF 8.73 million from CHF 4.33 million previously, with basic earnings per share rising to CHF 1.36 from CHF 0.67 last year.

SWX:VZUG 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.

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