Stock Analysis

SIX Swiss Exchange Showcases Three Growth Companies With High Insider Ownership

SWX:ARBN
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The Swiss market has shown resilience, maintaining stability over the past week and achieving a modest growth of 5.3% over the last year. In light of these conditions, companies with high insider ownership can be particularly compelling as they often indicate a strong alignment between company management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Switzerland

NameInsider OwnershipEarnings Growth
Stadler Rail (SWX:SRAIL)14.5%23.1%
VAT Group (SWX:VACN)10.2%23.1%
Straumann Holding (SWX:STMN)32.7%20.8%
LEM Holding (SWX:LEHN)29.9%9.4%
Swissquote Group Holding (SWX:SQN)11.4%13.7%
Temenos (SWX:TEMN)17.4%14.0%
Sonova Holding (SWX:SOON)17.7%9%
SHL Telemedicine (SWX:SHLTN)17.9%96.2%
Sensirion Holding (SWX:SENS)20.7%80%
Arbonia (SWX:ARBN)28.8%100.1%

Click here to see the full list of 15 stocks from our Fast Growing SIX Swiss Exchange Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Arbonia (SWX:ARBN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arbonia AG is a company that supplies building components across Switzerland, Germany, and other international markets, with a market capitalization of approximately CHF 880.76 million.

Operations: The revenue segments for the company include CHF 501.56 million from doors, including sanitary equipment, and CHF 3.07 million from corporate services.

Insider Ownership: 28.8%

Arbonia is poised for notable changes, with expectations to turn profitable within the next three years, aligning with above-average market growth projections. Although its revenue growth at 9% annually outpaces the Swiss market's 4.8%, it remains below the high-growth benchmark of 20%. Earnings are anticipated to surge by approximately 100.06% per year. However, a forecasted Return on Equity of only 3.8% suggests limited efficiency in generating profit from shareholders' equity.

SWX:ARBN Ownership Breakdown as at Jul 2024
SWX:ARBN Ownership Breakdown as at Jul 2024

LEM Holding (SWX:LEHN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: LEM Holding SA operates globally, offering solutions for measuring electrical parameters across various regions including Asia, Europe, the Middle East, Africa, and the Americas, with a market capitalization of approximately CHF 1.62 billion.

Operations: Revenue for the company is primarily generated through two segments: Asia (CHF 201.98 million) and Europe/Americas (CHF 203.79 million).

Insider Ownership: 29.9%

LEM Holding SA, a Swiss company with high insider ownership, shows mixed financial health and growth prospects. Its recent earnings report revealed a slight decline in sales and net income, with sales at CHF 405.78 million and net income at CHF 65.33 million for the year ended March 31, 2024. Despite this, analysts predict the stock price could rise by 30.2%, trading below its fair value by 19.3%. Forecasted annual revenue growth at 8.2% and profit growth at 9.4% per year outpace the Swiss market averages but fall short of high-growth benchmarks. The dividend yield stands at an unsecured rate of 3.52%, reflecting potential cash flow challenges.

SWX:LEHN Ownership Breakdown as at Jul 2024
SWX:LEHN Ownership Breakdown as at Jul 2024

Leonteq (SWX:LEON)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Leonteq AG specializes in offering structured investment products and long-term savings and retirement solutions across Switzerland, Europe, and Asia, including the Middle East, with a market capitalization of approximately CHF 409.93 million.

Operations: Leonteq's revenue from brokerage activities totaled CHF 256.88 million.

Insider Ownership: 12.7%

Leonteq AG, despite trading at 78.7% below its estimated fair value, faces challenges with debt not well covered by operating cash flow and dividends not adequately supported by free cash flows. However, the company is poised for robust earnings growth, forecasted at 32.4% annually over the next three years, outpacing the Swiss market's 8.3%. Yet, revenue growth projections of 10.6% yearly lag behind higher industry standards, and recent profit margins have diminished from previous highs.

SWX:LEON Earnings and Revenue Growth as at Jul 2024
SWX:LEON Earnings and Revenue Growth as at Jul 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.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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