Stock Analysis

Uncovering Switzerland's Hidden Stock Gems for August 2024

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The Swiss market has shown promising growth, rising 1.0% over the last week and 8.6% over the past year, with earnings forecasted to grow by 12% annually. In this favorable environment, identifying stocks that combine strong fundamentals with growth potential can uncover hidden gems poised for success in August 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
naturenergie holdingNA17.32%34.71%★★★★★★
TX Group0.96%-2.25%15.99%★★★★★★
APG|SGANA1.12%-16.11%★★★★★★
IVF Hartmann HoldingNA1.26%-4.29%★★★★★★
DatacolorNA3.59%30.14%★★★★★★
Elma Electronic36.60%3.13%3.10%★★★★★★
Compagnie Financière Tradition49.32%1.35%11.45%★★★★★☆
lastminute.com42.65%4.93%3.11%★★★★☆☆
Jungfraubahn Holding17.74%3.55%9.25%★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis3.00%-10.81%-16.31%★★★★☆☆

Click here to see the full list of 18 stocks from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener.

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

Compagnie Financière Tradition (SWX:CFT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide, with a market cap of CHF1.18 billion.

Operations: The company's revenue streams are segmented by region, with CHF431.78 million from Europe, Middle East and Africa, CHF350.89 million from the Americas, and CHF271.44 million from Asia-Pacific.

Earnings for Compagnie Financière Tradition grew by 6% in the past year, outpacing the Capital Markets industry average of -0.1%. The company has more cash than total debt, with a debt-to-equity ratio reducing from 69.2% to 49.3% over five years. Trading at 37.3% below estimated fair value, CFT's high-quality earnings and positive free cash flow make it a compelling prospect despite recent shareholder dilution.

SWX:CFT Debt to Equity as at Aug 2024

lastminute.com (SWX:LMN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: lastminute.com N.V., along with its subsidiaries, operates in the online travel industry across Italy, Spain, the United Kingdom, France, Germany, and internationally with a market cap of CHF212.18 million.

Operations: The company's revenue streams are divided into Business to Business (B2B) and Business to Consumer (B2C), generating €128.34 million and €175.89 million respectively.

With a debt to equity ratio rising from 24.7% to 42.7% over five years, lastminute.com has seen notable changes in its financial structure. Despite this, the company’s EBIT covers interest payments 6.1 times over, indicating strong profitability and high-quality earnings. Recent earnings reports show net income increased to €9.99 million from €7.38 million year-over-year, with basic EPS rising to €0.94 from €0.69 per share, reflecting robust performance amidst volatility in the hospitality sector.

SWX:LMN Earnings and Revenue Growth as at Aug 2024

Vetropack Holding (SWX:VETN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Vetropack Holding AG, along with its subsidiaries, provides glass packaging solutions for the food and beverage industry and has a market capitalization of CHF621.48 million.

Operations: The company's revenue primarily comes from its glass packaging segments across various regions, with notable contributions from Switzerland and Austria (CHF338.50 million) and Croatia (CHF186.40 million). Specialty Glass in Switzerland adds CHF13.30 million to the total revenue.

Vetropack Holding's earnings surged 55.5% last year, outpacing the packaging industry's -15.9%. The company trades at a price-to-earnings ratio of 9.8x, significantly below the Swiss market average of 22.1x, suggesting good value compared to peers. Despite an increase in debt to equity from 8.8% to 34.1% over five years, its net debt to equity remains satisfactory at 23.1%, with interest payments well covered by EBIT (11.7x).

SWX:VETN Debt to Equity 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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