Stock Analysis

Undervalued Estimates On SIX Swiss Exchange Stocks For August 2024

SWX:BCHN
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The Switzerland market experienced a mild setback before rallying to end the day's session on a firm note, with investors digesting Swiss GDP and producer & import prices data. In this context of fluctuating market conditions, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on potential growth within the SIX Swiss Exchange.

Top 10 Undervalued Stocks Based On Cash Flows In Switzerland

NameCurrent PriceFair Value (Est)Discount (Est)
Swissquote Group Holding (SWX:SQN)CHF299.20CHF585.9948.9%
Burckhardt Compression Holding (SWX:BCHN)CHF586.00CHF962.7239.1%
Georg Fischer (SWX:GF)CHF63.90CHF112.5343.2%
Clariant (SWX:CLN)CHF12.73CHF21.7141.4%
lastminute.com (SWX:LMN)CHF18.80CHF30.3938.1%
Emmi (SWX:EMMN)CHF878.00CHF1607.3445.4%
Comet Holding (SWX:COTN)CHF339.50CHF663.6548.8%
Gurit Holding (SWX:GURN)CHF41.30CHF72.6143.1%
SGS (SWX:SGSN)CHF93.68CHF144.7035.3%
Arbonia (SWX:ARBN)CHF12.50CHF21.2441.2%

Click here to see the full list of 21 stocks from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Burckhardt Compression Holding (SWX:BCHN)

Overview: Burckhardt Compression Holding AG manufactures and sells reciprocating compressors globally, with a market cap of CHF1.98 billion.

Operations: Burckhardt Compression Holding AG generates revenue from two main segments: the Systems Division, which contributes CHF642.81 million, and the Services Division, which adds CHF339.15 million.

Estimated Discount To Fair Value: 39.1%

Burckhardt Compression Holding AG is trading at CHF586, significantly below its estimated fair value of CHF962.72. The company's earnings grew by 28.7% over the past year and are forecast to grow 9.1% per year, outpacing the Swiss market's 8.9%. Despite a dividend yield of 2.65%, which is not well covered by free cash flows, Burckhardt remains undervalued based on discounted cash flow analysis and offers strong return on equity forecasts (37.8%).

SWX:BCHN Discounted Cash Flow as at Aug 2024
SWX:BCHN Discounted Cash Flow as at Aug 2024

Clariant (SWX:CLN)

Overview: Clariant AG is a global company involved in the development, manufacture, distribution, and sale of specialty chemicals with a market cap of CHF4.19 billion.

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

Estimated Discount To Fair Value: 41.4%

Clariant AG, trading at CHF12.73, is significantly undervalued with an estimated fair value of CHF21.71 based on discounted cash flow analysis. Despite a decline in half-year sales to CHF2.07 billion and net income to CHF157 million, the company remains profitable and its earnings are forecast to grow 30.43% annually over the next three years, outpacing the Swiss market's growth rate of 8.9%. However, Clariant has a high level of debt and its dividend yield of 3.3% is not well covered by earnings.

SWX:CLN Discounted Cash Flow as at Aug 2024
SWX:CLN Discounted Cash Flow as at Aug 2024

Emmi (SWX:EMMN)

Overview: Emmi AG, with a market cap of CHF4.70 billion, develops, produces, and markets a range of dairy and fresh products primarily in Switzerland as well as in Europe, the Americas, Africa, and Asia/Pacific.

Operations: Emmi generates revenue primarily from dairy and fresh products across Switzerland, Europe, the Americas, Africa, and Asia/Pacific.

Estimated Discount To Fair Value: 45.4%

Emmi AG, currently trading at CHF878, is significantly undervalued with an estimated fair value of CHF1607.34 based on discounted cash flow analysis. Despite a slight decline in half-year revenue to CHF2.02 billion from CHF2.10 billion, net income increased to CHF104.38 million from CHF97.81 million last year. Earnings are forecast to grow 20% annually over the next three years, outpacing the Swiss market's growth rate of 8.9%.

SWX:EMMN Discounted Cash Flow as at Aug 2024
SWX:EMMN Discounted Cash Flow as at Aug 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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