Stock Analysis

3 Growth Stocks On SIX Swiss Exchange With Insider Ownership And 35% Earnings Growth

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The Swiss market recently experienced a modest downturn, influenced by external economic factors such as rising U.S. consumer price inflation and increased jobless claims, which contributed to a cautious sentiment among investors. In this environment, growth companies with high insider ownership can be particularly appealing as they often demonstrate strong alignment between management and shareholders, potentially driving robust earnings growth even amid broader market fluctuations.

Top 10 Growth Companies With High Insider Ownership In Switzerland

NameInsider OwnershipEarnings Growth
Stadler Rail (SWX:SRAIL)14.5%24.1%
VAT Group (SWX:VACN)10.2%22.5%
Addex Therapeutics (SWX:ADXN)19%33.3%
Straumann Holding (SWX:STMN)32.7%21.8%
LEM Holding (SWX:LEHN)29.9%18.4%
Swissquote Group Holding (SWX:SQN)11.4%12.6%
Temenos (SWX:TEMN)21.8%14.4%
Gurit Holding (SWX:GURN)30.2%76.2%
Sensirion Holding (SWX:SENS)19.9%102.7%
Leonteq (SWX:LEON)11.9%35.1%

Click here to see the full list of 14 stocks from our Fast Growing SIX Swiss Exchange Companies With High Insider Ownership screener.

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

LEM Holding (SWX:LEHN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: LEM Holding SA, along with its subsidiaries, offers solutions for measuring electrical parameters across various regions including China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America with a market capitalization of CHF1.44 billion.

Operations: Revenue segments for LEM Holding SA include solutions for measuring electrical parameters across regions such as China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America.

Insider Ownership: 29.9%

Earnings Growth Forecast: 18.4% p.a.

LEM Holding faces challenges with a recent decline in sales and net income, yet it remains attractive for growth-focused investors. The company's earnings are forecast to grow 18.4% annually, outpacing the Swiss market. Despite volatility and high debt levels, LEM is trading below its estimated fair value and analysts expect a 27.4% price increase. However, profit margins have decreased and dividends are not covered by free cash flows, suggesting some financial pressures.

SWX:LEHN Ownership Breakdown as at Oct 2024

Leonteq (SWX:LEON)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Leonteq AG offers structured investment products and long-term savings and retirement solutions across Switzerland, Europe, and Asia including the Middle East, with a market cap of CHF493.24 million.

Operations: Leonteq AG generates revenue from its brokerage segment, amounting to CHF244.51 million.

Insider Ownership: 11.9%

Earnings Growth Forecast: 35.1% p.a.

Leonteq's growth prospects are mixed, with earnings forecast to grow significantly at 35.1% annually, surpassing the Swiss market. However, revenue growth is slower at 10.2% per year and profit margins have declined from last year. The company trades well below its estimated fair value but faces challenges with low return on equity forecasts and unsustainable dividends. Recent earnings show decreased revenue and net income compared to last year, highlighting financial pressures despite potential growth.

SWX:LEON Earnings and Revenue Growth as at Oct 2024

Temenos (SWX:TEMN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide, with a market cap of CHF4.59 billion.

Operations: The company's revenue is derived from two main segments: Product, contributing $879.99 million, and Services, generating $132.98 million.

Insider Ownership: 21.8%

Earnings Growth Forecast: 14.4% p.a.

Temenos exhibits promising growth potential, with earnings projected to grow 14.4% annually, outpacing the Swiss market. Despite trading below its estimated fair value, it faces challenges with high debt levels. Recent strategic appointments aim to bolster its SaaS and AI capabilities, potentially enhancing global expansion. The company's share buyback program reflects confidence in future prospects, although revenue growth remains moderate at 7.6% per year compared to industry standards.

SWX:TEMN Ownership Breakdown as at Oct 2024

Summing It All Up

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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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