Stock Analysis

Swiss Hidden Treasures naturenergie holding and 2 Promising Small Caps

SWX:TXGN
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Over the last 7 days, the Swiss market has remained flat, yet it boasts an impressive 16% increase over the past year with earnings forecasted to grow by 12% annually. In this promising environment, identifying stocks that combine growth potential with solid fundamentals can uncover hidden treasures like naturenergie holding and other promising small caps.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
IVF Hartmann HoldingNA0.24%0.63%★★★★★★
naturenergie holdingNA17.32%34.71%★★★★★★
TX Group0.93%-1.67%7.21%★★★★★★
DatacolorNA3.59%30.14%★★★★★★
Elma Electronic36.60%3.13%3.10%★★★★★★
Compagnie Financière Tradition47.15%1.91%11.44%★★★★★☆
Vaudoise Assurances HoldingNA1.52%1.85%★★★★★☆
Bergbahnen Engelberg-Trübsee-Titlis1.66%-1.82%12.78%★★★★★☆
Procimmo Group157.49%0.65%4.94%★★★★☆☆
lastminute.com42.65%4.93%3.11%★★★★☆☆

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

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

naturenergie holding (SWX:NEAG)

Simply Wall St Value Rating: ★★★★★★

Overview: Naturenergie Holding AG, with a market cap of CHF1.25 billion, operates through its subsidiaries in the production, distribution, and sale of electricity under the naturenergie brand both in Switzerland and internationally.

Operations: Naturenergie Holding AG generates revenue primarily from Customer-Oriented Energy Solutions (€1.15 billion) and Renewable Generation Infrastructure (€1.09 billion). The company's net profit margin reflects its financial efficiency in managing costs relative to its revenue streams.

Naturenergie Holding, a small player in the Swiss energy sector, shows impressive earnings growth of 40.5% over the past year, outpacing the Electric Utilities industry. With a price-to-earnings ratio of 11.5x below the Swiss market average of 21.5x, it seems undervalued relative to peers. The company is debt-free and boasts high-quality earnings, suggesting financial stability and no concerns about interest payments coverage. Recent results reveal net income rose to €77 million from €68 million last year despite sales dipping to €868 million from €973 million, hinting at effective cost management or operational efficiency improvements amidst revenue challenges.

SWX:NEAG Debt to Equity as at Oct 2024
SWX:NEAG Debt to Equity as at Oct 2024

TX Group (SWX:TXGN)

Simply Wall St Value Rating: ★★★★★★

Overview: TX Group AG operates a network of platforms and participations offering information, orientation, entertainment, and support services in Switzerland, with a market cap of CHF1.55 billion.

Operations: TX Group AG generates revenue through segments such as Tamedia (CHF 427 million), Goldbach (CHF 299.10 million), and others, with a total revenue of CHF 983.90 million after accounting for eliminations and reconciliation IAS 19. The net profit margin trend is noteworthy, reflecting the company's ability to manage costs relative to its revenues effectively.

TX Group, a small Swiss media player, has shown promising financial resilience. Its recent inclusion in the S&P Global BMI Index underscores its growing prominence. Over the past five years, TXGN's debt to equity ratio impressively fell from 4.4% to 0.9%, reflecting prudent financial management. The company reported a net income of CHF 9.6 million for the half year ending June 2024, reversing a previous loss of CHF 1.4 million, and earnings per share climbed to CHF 0.9 from a loss of CHF 0.13 last year. Trading at nearly two-thirds below its estimated fair value suggests potential upside for investors seeking undervalued opportunities in Switzerland's media landscape.

SWX:TXGN Debt to Equity as at Oct 2024
SWX:TXGN Debt to Equity as at Oct 2024

IVF Hartmann Holding (SWX:VBSN)

Simply Wall St Value Rating: ★★★★★★

Overview: IVF Hartmann Holding AG operates in the medical consumer goods sector, serving markets both in Switzerland and internationally, with a market capitalization of CHF335.81 million.

Operations: IVF Hartmann Holding AG generates revenue primarily from wound care (CHF41.97 million), infection management (CHF56.41 million), and incontinence management (CHF33.07 million).

IVF Hartmann, a notable name in Switzerland's medical supplies sector, is showcasing promising growth with recent half-year sales reaching CHF 76.51 million, up from CHF 71.57 million the previous year. Revenue also climbed to CHF 78.7 million from CHF 74.77 million, while net income saw an increase to CHF 9.53 million from CHF 7.04 million last year, highlighting its robust performance amid industry challenges. The company's basic earnings per share rose to CHF 3.97 compared to the prior year's CHF 2.93, indicating strong operational efficiency and profitability that outpaces many peers in the medical equipment field.

SWX:VBSN Debt to Equity as at Oct 2024
SWX:VBSN Debt to Equity 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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