Stock Analysis

Three Companies On SIX Swiss Exchange That May Be Trading Below Estimated Value

SWX:BARN
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The Swiss market recently experienced a slight downturn, with the SMI index closing marginally lower despite a late recovery, reflecting mixed performances across various sectors. In this context of fluctuating market conditions, identifying undervalued stocks can be crucial for investors seeking opportunities that may offer potential value relative to their current trading prices.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

NameCurrent PriceFair Value (Est)Discount (Est)
Swissquote Group Holding (SWX:SQN)CHF300.80CHF559.3446.2%
Georg Fischer (SWX:GF)CHF55.50CHF108.2948.7%
lastminute.com (SWX:LMN)CHF18.10CHF28.9037.4%
Julius Bär Gruppe (SWX:BAER)CHF54.32CHF103.7847.7%
Comet Holding (SWX:COTN)CHF296.00CHF526.4843.8%
Komax Holding (SWX:KOMN)CHF115.20CHF202.7243.2%
Clariant (SWX:CLN)CHF12.32CHF21.4342.5%
Dätwyler Holding (SWX:DAE)CHF150.60CHF237.5036.6%
SGS (SWX:SGSN)CHF94.34CHF151.1737.6%
Sensirion Holding (SWX:SENS)CHF67.20CHF117.6442.9%

Click here to see the full list of 17 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

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 CHF2.95 billion.

Operations: The company's revenue is primarily derived from its operations in Central Europe, generating €4.62 billion, and Northern/Eastern Europe, contributing €5.24 billion.

Estimated Discount To Fair Value: 33.3%

ALSO Holding is trading at CHF240.5, significantly below its estimated fair value of CHF360.34, suggesting it is undervalued by over 33%. Despite a volatile share price recently, earnings are projected to grow at 26.8% annually, outpacing the Swiss market's growth rate of 11.6%. While revenue growth is slower than earnings, it still surpasses the broader market's pace. The company offers a stable dividend yield of 1.88%.

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

Barry Callebaut (SWX:BARN)

Overview: Barry Callebaut AG, along with its subsidiaries, manufactures and sells chocolate and cocoa products, with a market cap of CHF8.53 billion.

Operations: The company's revenue segments include Global Cocoa, contributing CHF5.31 billion, and a Segment Adjustment of CHF6.76 billion.

Estimated Discount To Fair Value: 31.9%

Barry Callebaut is trading at CHF1558, well below its estimated fair value of CHF2287.69, indicating a significant undervaluation. The company's earnings are projected to grow at 25.9% annually, surpassing the Swiss market's growth rate of 11.6%. However, its dividend yield of 1.86% isn't well covered by free cash flows and debt coverage through operating cash flow is inadequate. Despite these challenges, revenue growth remains robust compared to the market average.

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

Ypsomed Holding (SWX:YPSN)

Overview: Ypsomed Holding AG, with a market cap of CHF5.58 billion, develops, manufactures, and sells injection and infusion systems for pharmaceutical and biotechnology companies through its subsidiaries.

Operations: The company's revenue is primarily derived from Ypsomed Delivery Systems, contributing CHF385.15 million, and Ypsomed Diabetes Care, which accounts for CHF151.05 million.

Estimated Discount To Fair Value: 23.5%

Ypsomed Holding is trading at CHF409, significantly below its estimated fair value of CHF534.55, highlighting undervaluation. The company's earnings are expected to grow significantly at 33.3% annually, outpacing the Swiss market's growth rate of 11.6%. Recent collaboration with Astria Therapeutics for an autoinjector could enhance future cash flows. However, Ypsomed's return on equity is forecasted to be relatively low at 17.8% in three years, warranting cautious optimism regarding long-term profitability improvements.

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