Stock Analysis

3 Swiss Companies Possibly Trading Below Their Intrinsic Value By Up To 35.6% On SIX Swiss Exchange

SWX:ALSN
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The Switzerland market opened weak Friday morning and kept drifting lower as the day progressed, closing with a more than 1% loss. Investors moved past the Fed's rate hike and awaited the Swiss National Bank's monetary policy announcement next Thursday, where a rate cut is widely expected. In this environment of cautious sentiment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential market inefficiencies. Here are three Swiss companies possibly trading below their intrinsic value by up to 35.6% on SIX Swiss Exchange.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

NameCurrent PriceFair Value (Est)Discount (Est)
Swissquote Group Holding (SWX:SQN)CHF303.20CHF567.7346.6%
ALSO Holding (SWX:ALSN)CHF270.50CHF416.8535.1%
Georg Fischer (SWX:GF)CHF63.80CHF112.5643.3%
lastminute.com (SWX:LMN)CHF19.90CHF29.7133%
Clariant (SWX:CLN)CHF11.97CHF21.3343.9%
Comet Holding (SWX:COTN)CHF313.00CHF529.1640.8%
Barry Callebaut (SWX:BARN)CHF1526.00CHF2370.5735.6%
VAT Group (SWX:VACN)CHF397.20CHF556.8028.7%
SGS (SWX:SGSN)CHF95.56CHF144.6333.9%
Dätwyler Holding (SWX:DAE)CHF170.20CHF250.3032%

Click here to see the full list of 15 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

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

ALSO Holding (SWX:ALSN)

Overview: ALSO Holding AG is a technology services provider for the ICT industry operating in Switzerland, Germany, the Netherlands, Poland, and internationally, with a market cap of CHF3.31 billion.

Operations: ALSO Holding AG generates revenue from Central Europe (€4.62 billion) and Northern/Eastern Europe (€5.24 billion).

Estimated Discount To Fair Value: 35.1%

ALSO Holding is trading at CHF270.5, 35.1% below its estimated fair value of CHF416.85, indicating it may be undervalued based on cash flows. Despite a highly volatile share price over the past three months, earnings are forecast to grow significantly at 24% annually, outpacing the Swiss market's growth rate of 11.7%. However, revenue growth is slower than desired at 12% per year and recent earnings reports show a decline in net income to EUR41.66 million from EUR52.53 million last year.

SWX:ALSN Discounted Cash Flow as at Sep 2024
SWX:ALSN Discounted Cash Flow as at Sep 2024

Barry Callebaut (SWX:BARN)

Overview: Barry Callebaut AG, with a market cap of CHF8.35 billion, manufactures and sells chocolate and cocoa products through its subsidiaries.

Operations: The company's revenue segments include Global Cocoa, which generated CHF5.31 billion, and Segment Adjustment amounting to CHF6.76 billion.

Estimated Discount To Fair Value: 35.6%

Barry Callebaut is trading at CHF1526, significantly below its estimated fair value of CHF2370.57, making it highly undervalued based on discounted cash flow analysis. Earnings are forecast to grow 25.27% annually, outpacing the Swiss market's 11.7%. However, the company faces challenges with debt coverage by operating cash flow and a low projected return on equity of 14.8% in three years. Recent presentations at the Baader Investment Conference highlight strategic initiatives aligning with EUDR objectives.

SWX:BARN Discounted Cash Flow as at Sep 2024
SWX:BARN Discounted Cash Flow as at Sep 2024

Ypsomed Holding (SWX:YPSN)

Overview: Ypsomed Holding AG, with a market cap of CHF 5.75 billion, develops, manufactures, and sells injection and infusion systems for pharmaceutical and biotechnology companies through its subsidiaries.

Operations: Revenue Segments: Ypsomed generates revenue primarily from Ypsomed Diabetes Care (CHF 151.05 million) and Ypsomed Delivery Systems (CHF 385.15 million).

Estimated Discount To Fair Value: 21.1%

Ypsomed Holding, trading at CHF421.5, is undervalued by 21.1% based on a fair value estimate of CHF533.91 from discounted cash flow analysis. The company's earnings grew by 52.8% over the past year and are forecast to grow significantly at 33.3% annually, surpassing the Swiss market's 11.7%. Recent news includes a partnership with Astria Therapeutics for an autoinjector development, potentially boosting future revenue streams despite a lower projected return on equity of 17.8%.

SWX:YPSN Discounted Cash Flow as at Sep 2024
SWX:YPSN Discounted Cash Flow 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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