Yahoo Finance Exploring Three Elite Stocks On SIX Swiss Exchange With Intrinsic Value Discounts Up To 47.3%
The Swiss stock market experienced a notable downturn on Friday, with the SMI index closing down by 0.95% amidst growing concerns about global economic growth. This recent volatility underscores the importance of identifying stocks that potentially offer intrinsic value, which can be particularly appealing in uncertain market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Switzerland
Name | Current Price | Fair Value (Est) | Discount (Est) |
COLTENE Holding (SWX:CLTN) | CHF48.30 | CHF76.14 | 36.6% |
Burckhardt Compression Holding (SWX:BCHN) | CHF581.00 | CHF823.07 | 29.4% |
Julius Bär Gruppe (SWX:BAER) | CHF50.74 | CHF96.33 | 47.3% |
Sonova Holding (SWX:SOON) | CHF271.20 | CHF449.27 | 39.6% |
Temenos (SWX:TEMN) | CHF61.00 | CHF84.12 | 27.5% |
SGS (SWX:SGSN) | CHF81.20 | CHF122.46 | 33.7% |
Comet Holding (SWX:COTN) | CHF364.50 | CHF546.29 | 33.3% |
Medartis Holding (SWX:MED) | CHF71.00 | CHF120.79 | 41.2% |
Kudelski (SWX:KUD) | CHF1.42 | CHF1.86 | 23.7% |
Galderma Group (SWX:GALD) | CHF74.86 | CHF149.66 | 50% |
Let's explore several standout options from the results in the screener
Julius Bär Gruppe
Overview: Julius Bär Gruppe AG is a global wealth management firm operating in Switzerland, Europe, the Americas, and Asia, with a market capitalization of approximately CHF 10.39 billion.
Operations: The firm's revenue from private banking amounts to CHF 3.24 billion.
Estimated Discount To Fair Value: 47.3%
Julius Bär Gruppe, priced at CHF50.74, is significantly undervalued based on a discounted cash flow valuation with an estimated fair value of CHF96.33, indicating substantial upside potential. Despite a high bad loans ratio of 2% and a low allowance for bad loans at 92%, the company's earnings are expected to outpace the Swiss market significantly, with projections showing a 21.88% annual growth rate. Recent executive changes could influence operational dynamics as Benjamin Sim steps into a key leadership role in Greater China Singapore.
Swissquote Group Holding
Overview: Swissquote Group Holding Ltd operates globally, offering a range of online financial services to retail, affluent, and professional institutional clients with a market capitalization of CHF 4.22 billion.
Operations: The company generates revenue primarily through two segments: Leveraged Forex, which brought in CHF 101.09 million, and Securities Trading, contributing CHF 429.78 million.
Estimated Discount To Fair Value: 21.8%
Swissquote Group Holding, valued at CHF284, appears undervalued with a discounted cash flow estimated fair value of CHF363.39. The company's earnings and revenue growth forecasts of 14% and 10.3% respectively surpass the Swiss market projections of 8.3% and 4.4%. Despite trading at a significant discount (21.8%) to its fair value, caution is advised as the anticipated annual profit growth isn't exceptionally high, though it remains robust compared to market averages.
Temenos
Overview: Temenos AG is a global company that develops, markets, and sells integrated banking software systems to financial institutions, with a market capitalization of approximately CHF 4.42 billion.
Operations: The company generates its revenue by providing integrated banking software systems to financial institutions globally.
Estimated Discount To Fair Value: 27.5%
Temenos, priced at CHF61, trades below its estimated fair value of CHF84.12, indicating a potential undervaluation based on cash flows. Recent share buyback plans totaling CHF200 million underscore confidence in its valuation and capital structure. While Temenos' earnings are expected to grow by 14.7% annually, surpassing the Swiss market's 8.3%, its revenue growth forecast at 7.6% annually is modest compared to high-growth sectors but still outpaces the Swiss market average of 4.4%. Despite this positive outlook, investors should consider the company's high debt levels and share price volatility over the last three months.
Our growth report here indicates Temenos may be poised for an improving outlook.
Click to explore a detailed breakdown of our findings in Temenos' balance sheet health report.
Taking Advantage
Explore the 13 names from our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows screener here.
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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.
Companies discussed in this article include SWX:BAER SWX:SQN and SWX:TEMN.
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