Discovering Switzerland's Undiscovered Gems This August 2024

The Switzerland market experienced a rollercoaster session on Thursday, with the benchmark SMI index recovering much of its earlier losses to close down just 0.13% at 11,827.43 points. Amid this backdrop of profit-taking and selective buying in frontline stocks, investors may find opportunities in lesser-known companies that exhibit strong fundamentals and growth potential despite broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
naturenergie holding	NA	17.32%	34.71%	★★★★★★
APG|SGA	NA	1.12%	-16.11%	★★★★★★
TX Group	0.96%	-2.25%	15.99%	★★★★★★
IVF Hartmann Holding	NA	1.26%	-4.29%	★★★★★★
Datacolor	NA	3.59%	30.14%	★★★★★★
Compagnie Financière Tradition	49.32%	1.35%	11.45%	★★★★★☆
SKAN Group	3.57%	40.44%	22.38%	★★★★★☆
Elma Electronic	42.57%	2.00%	-1.74%	★★★★★☆
Jungfraubahn Holding	17.74%	3.55%	9.25%	★★★★☆☆
Bergbahnen Engelberg-Trübsee-Titlis	3.00%	-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.

Here we highlight a subset of our preferred stocks from the screener.

Elma Electronic (SWX:ELMN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Elma Electronic AG manufactures and sells electronic packaging products for the embedded systems market worldwide and has a market cap of CHF235.35 million.

Operations: Elma Electronic AG generates revenue primarily from its Electronic Components and Parts segment, which amounts to CHF167.14 million.

Elma Electronic has shown impressive performance, with earnings growing 20.6% over the past year, outpacing the electronic industry’s -20.4%. The company’s debt to equity ratio has improved significantly from 68% to 42.6% in five years, indicating better financial health. Additionally, its interest payments are well covered by EBIT at a multiple of 17.2x. Despite a slight annual decline in earnings of 1.7%, Elma's high-quality earnings and satisfactory net debt to equity ratio (26%) underscore its robust fundamentals.

• Delve into the full analysis health report here for a deeper understanding of Elma Electronic.

• Assess Elma Electronic's past performance with our detailed historical performance reports.

Romande Energie Holding (SWX:REHN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Romande Energie Holding SA focuses on the production, distribution, and marketing of electrical and thermal energy in Switzerland, with a market cap of CHF1.39 billion.

Operations: Romande Energie Holding SA generates revenue primarily from its Energy Solutions segment (CHF 539.70 million) and Grids segment (CHF 311.94 million), with additional contributions from Romande Energie Services (CHF 163.79 million) and Corporate (CHF 68.28 million).

Romande Energie Holding has shown impressive earnings growth of 476.6% over the past year, significantly outpacing the Electric Utilities industry at 7.6%. With a net debt to equity ratio at a satisfactory 3.8%, its financial health appears robust. Trading at a P/E ratio of 6.5x, it is considered good value compared to the Swiss market average of 21.4x. However, earnings are forecasted to decline by an average of 22.7% annually over the next three years, which could impact future performance evaluations.

• Click here to discover the nuances of Romande Energie Holding with our detailed analytical health report.

• Evaluate Romande Energie Holding's historical performance by accessing our past performance report.

V-ZUG Holding (SWX:VZUG)

Simply Wall St Value Rating: ★★★★★★

Overview: V-ZUG Holding AG develops, manufactures, markets, sells, and services kitchen and laundry appliances for private households in Switzerland and internationally with a market cap of CHF366.43 million.

Operations: The company generates CHF571.35 million in revenue from its household appliances segment.

V-ZUG Holding, a Swiss appliance manufacturer, reported earnings growth of 89.2% over the past year, significantly outpacing the Consumer Durables industry’s 0.2%. For the half-year ending June 30, 2024, sales reached CHF 284.08 million with net income doubling to CHF 8.73 million from CHF 4.33 million last year. The company is debt-free now compared to a debt-to-equity ratio of 22.4% five years ago and forecasts suggest annual earnings growth of around 38.68%.

• Dive into the specifics of V-ZUG Holding here with our thorough health report.

• Understand V-ZUG Holding's track record by examining our Past report.

Summing It All Up

• Dive into all 18 of the SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals we have identified here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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