3 Swiss Stocks On SIX Swiss Exchange Trading At Up To 42.8% Estimated Discount

The Switzerland market shrugged off early weakness and moved modestly higher on Friday, tracking positive global cues. Investors continued to cheer Swiss National Bank's interest rate move, in addition to digesting U.S. personal consumption expenditure data. In this buoyant market environment, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on potential gains.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

Name	Current Price	Fair Value (Est)	Discount (Est)
Swissquote Group Holding (SWX:SQN)	CHF300.20	CHF565.88	47%
ALSO Holding (SWX:ALSN)	CHF269.50	CHF364.33	26%
Georg Fischer (SWX:GF)	CHF64.40	CHF112.55	42.8%
lastminute.com (SWX:LMN)	CHF18.96	CHF29.57	35.9%
Barry Callebaut (SWX:BARN)	CHF1564.00	CHF2287.69	31.6%
Clariant (SWX:CLN)	CHF12.85	CHF21.56	40.4%
Comet Holding (SWX:COTN)	CHF336.50	CHF529.25	36.4%
SGS (SWX:SGSN)	CHF95.18	CHF144.79	34.3%
Dätwyler Holding (SWX:DAE)	CHF173.40	CHF241.80	28.3%
Galderma Group (SWX:GALD)	CHF80.00	CHF157.58	49.2%

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

Let's take a closer look at a couple of our picks from the screened companies.

Clariant (SWX:CLN)

Overview: Clariant AG develops, manufactures, distributes, and sells specialty chemicals globally with a market cap of CHF4.23 billion.

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

Estimated Discount To Fair Value: 40.4%

Clariant AG appears undervalued based on cash flows, trading at CHF 12.85, well below its estimated fair value of CHF 21.56. Despite recent earnings showing a decline in net income to CHF 157 million from CHF 232 million, the company forecasts significant annual profit growth of over 30%, outpacing the Swiss market's average. However, it faces challenges with high debt levels and a dividend not well-covered by earnings.

• Insights from our recent growth report point to a promising forecast for Clariant's business outlook.
• Navigate through the intricacies of Clariant with our comprehensive financial health report here.

Georg Fischer (SWX:GF)

Overview: Georg Fischer AG provides piping systems and casting and machining solutions across Europe, the Americas, Asia, and internationally with a market cap of CHF5.27 billion.

Operations: The company generates revenue from three primary segments: GF Piping Systems (CHF1.99 billion), GF Casting Solutions (CHF901 million), and GF Machining Solutions (CHF853 million).

Estimated Discount To Fair Value: 42.8%

Georg Fischer AG is trading at CHF 64.4, significantly below its estimated fair value of CHF 112.55, suggesting it may be undervalued based on cash flows. Despite a recent earnings report showing net income dropping to CHF 97 million from CHF 123 million and profit margins decreasing to 4.6%, the company forecasts annual earnings growth of over 22%, outpacing the Swiss market's average. However, debt coverage by operating cash flow remains a concern.

• Our expertly prepared growth report on Georg Fischer implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of Georg Fischer stock in this financial health report.

Temenos (SWX:TEMN)

Overview: Temenos AG develops, markets, and sells integrated banking software systems to financial institutions globally and has a market cap of CHF 4.33 billion.

Operations: Temenos generates revenue primarily from its Product segment, which accounts for $879.99 million, and its Services segment, contributing $132.98 million.

Estimated Discount To Fair Value: 23%

Temenos is trading at CHF 59.4, approximately 23% below its estimated fair value of CHF 77.12, indicating potential undervaluation based on cash flows. The company forecasts annual earnings growth of 14.3%, outpacing the Swiss market's average of 11.7%. Despite having a high level of debt, recent share buybacks totaling CHF 200 million and key executive appointments to drive SaaS growth highlight strategic moves to enhance financial performance and market positioning.

• According our earnings growth report, there's an indication that Temenos might be ready to expand.
• Click here and access our complete balance sheet health report to understand the dynamics of Temenos.

Next Steps

• Explore the 15 names from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• 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.

Ready To Venture Into Other Investment Styles?

• 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