3 Swiss Stocks On SIX Swiss Exchange That May Be Undervalued In August 2024

The Switzerland market ended marginally down on Wednesday, with the benchmark SMI closing at 12,250.11 as investors awaited more clarity on potential interest rate cuts by the Federal Reserve. Despite this cautious atmosphere, certain stocks may present undervalued opportunities due to their strong fundamentals and resilience amidst economic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
LEM Holding (SWX:LEHN)	CHF1248.00	CHF1816.44	31.3%
Swissquote Group Holding (SWX:SQN)	CHF304.00	CHF571.01	46.8%
Georg Fischer (SWX:GF)	CHF63.85	CHF112.30	43.1%
Clariant (SWX:CLN)	CHF13.02	CHF21.76	40.2%
Temenos (SWX:TEMN)	CHF58.50	CHF79.06	26%
lastminute.com (SWX:LMN)	CHF20.00	CHF30.08	33.5%
Comet Holding (SWX:COTN)	CHF348.00	CHF663.51	47.6%
Emmi (SWX:EMMN)	CHF877.00	CHF1606.37	45.4%
SGS (SWX:SGSN)	CHF93.78	CHF146.19	35.8%
Dätwyler Holding (SWX:DAE)	CHF173.20	CHF250.18	30.8%

Click here to see the full list of 16 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Clariant (SWX:CLN)

Overview: Clariant AG develops, manufactures, distributes, and sells specialty chemicals globally, with a market cap of CHF4.28 billion.

Operations: The company's revenue segments include Catalysis (CHF927 million), Care Chemicals (CHF2.22 billion), and Adsorbents & Additives (CHF1.02 billion).

Estimated Discount To Fair Value: 40.2%

Clariant AG is trading at CHF 13.02, which is 40.2% below its estimated fair value of CHF 21.76 based on discounted cash flow analysis, indicating it may be undervalued. Despite a recent decline in sales and net income for the half year ended June 30, 2024, Clariant's earnings are forecast to grow significantly at 30.4% annually over the next three years, outpacing Swiss market growth rates. However, the company carries a high level of debt and its dividend yield of 3.23% is not well covered by earnings.

• The analysis detailed in our Clariant growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Clariant stock in this financial health report.

lastminute.com (SWX:LMN)

Overview: lastminute.com N.V., with a market cap of CHF213.67 million, operates in the online travel industry across Italy, Spain, the United Kingdom, France, Germany and internationally through its subsidiaries.

Operations: The company generates revenue of €128.34 million from Business to Business (B2B) operations and €175.89 million from Business to Consumer (B2C) activities.

Estimated Discount To Fair Value: 33.5%

lastminute.com is trading at CHF 20, significantly below its estimated fair value of CHF 30.08, suggesting it is undervalued based on discounted cash flow analysis. The company's earnings are forecast to grow at 30% annually, outpacing the Swiss market's growth rate. Recent earnings results show net income increased to EUR 9.99 million from EUR 7.38 million a year ago, despite a decline in sales. However, the stock has been highly volatile recently and has an unstable dividend track record.

• According our earnings growth report, there's an indication that lastminute.com might be ready to expand.
• Delve into the full analysis health report here for a deeper understanding of lastminute.com.

VAT Group (SWX:VACN)

Overview: VAT Group AG, with a market cap of CHF13.12 billion, develops, manufactures, and supplies vacuum valves, multi-valve units, vacuum modules, and edge-welded metal bellows across Switzerland, Europe, the United States, Japan, Korea, Singapore, China and other international markets.

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

Estimated Discount To Fair Value: 21.3%

VAT Group is trading at CHF 437.7, below its estimated fair value of CHF 556.37, indicating it is undervalued based on discounted cash flow analysis. Despite a highly volatile share price over the past three months, the company’s earnings are forecast to grow significantly at 22.48% annually, outpacing the Swiss market's growth rate of 11.9%. Recent earnings results for H1 2024 show net income increased to CHF 94 million from CHF 84.2 million a year ago despite slightly lower sales.

• Our earnings growth report unveils the potential for significant increases in VAT Group's future results.
• Click to explore a detailed breakdown of our findings in VAT Group's balance sheet health report.

Taking Advantage

• Click through to start exploring the rest of the 13 Undervalued SIX Swiss Exchange Stocks Based On Cash Flows now.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com