Yahoo Finance Three SIX Swiss Exchange Stocks With Intrinsic Value Discounts Ranging From 14.2% To 39.9%
Despite a generally positive performance throughout the day, the Switzerland market concluded with a slight decline, reflecting a cautious sentiment among investors. In such an environment, identifying stocks that appear undervalued relative to their intrinsic value could provide interesting opportunities for those looking to invest in potentially resilient assets within this market context.
Top 10 Undervalued Stocks Based On Cash Flows In Switzerland
Name | Current Price | Fair Value (Est) | Discount (Est) |
Sulzer (SWX:SUN) | CHF133.40 | CHF221.87 | 39.9% |
COLTENE Holding (SWX:CLTN) | CHF47.30 | CHF77.39 | 38.9% |
Burckhardt Compression Holding (SWX:BCHN) | CHF591.00 | CHF858.47 | 31.2% |
Temenos (SWX:TEMN) | CHF64.05 | CHF85.07 | 24.7% |
Julius Bär Gruppe (SWX:BAER) | CHF51.06 | CHF95.76 | 46.7% |
Sonova Holding (SWX:SOON) | CHF272.40 | CHF467.98 | 41.8% |
SGS (SWX:SGSN) | CHF80.56 | CHF125.30 | 35.7% |
Comet Holding (SWX:COTN) | CHF373.00 | CHF589.79 | 36.8% |
Medartis Holding (SWX:MED) | CHF71.10 | CHF131.27 | 45.8% |
Sika (SWX:SIKA) | CHF257.60 | CHF337.76 | 23.7% |
Let's explore several standout options from the results in the screener
Barry Callebaut
Overview: Barry Callebaut AG operates in the manufacturing and sale of chocolate and cocoa products, with a market capitalization of approximately CHF 8.58 billion.
Operations: The company's revenue is primarily derived from its Global Cocoa segment, which generated CHF 5.31 billion.
Estimated Discount To Fair Value: 14.2%
Barry Callebaut, priced at CHF1568, is trading below its estimated fair value of CHF1827.66, suggesting undervaluation based on discounted cash flow analysis. Despite a highly volatile share price recently and debt not well covered by operating cash flow, the company's earnings are expected to grow by 25.2% annually, outpacing the Swiss market's 8.3%. However, its return on equity might remain low at 14.7% in three years. Recent earnings reported a significant drop in net income from CHF235.49 million to CHF77.93 million year-over-year.
Sika
Overview: Sika AG is a specialty chemicals company that offers products and systems for bonding, sealing, damping, reinforcing, and protecting in the building and automotive industries globally, with a market capitalization of CHF 41.33 billion.
Operations: Sika generates CHF 9.45 billion from its construction industry products and CHF 1.78 billion from industrial manufacturing products.
Estimated Discount To Fair Value: 23.7%
Sika, with a current price of CHF257.6, is identified as undervalued based on DCF models, showing a significant gap from its fair value of CHF337.76. Despite recent shareholder dilution and high debt levels, the company's strategic expansions like the new plant in Liaoning and synthetic macro fibers facility in Peru underscore its growth trajectory. Earnings are expected to outperform the Swiss market with robust forecasts for both revenue and profit growth.
The analysis detailed in our Sika growth report hints at robust future financial performance.
Take a closer look at Sika's balance sheet health here in our report.
Sulzer
Overview: Sulzer Ltd is a global company specializing in fluid engineering and chemical processing solutions, with a market capitalization of CHF 4.51 billion.
Operations: The company's revenue is divided into three main segments: Chemtech at CHF 772.50 million, Services at CHF 1.15 billion, and Flow Equipment at CHF 1.35 billion.
Estimated Discount To Fair Value: 39.9%
Sulzer, priced at CHF133.4, is trading significantly below its estimated fair value of CHF221.87, marking a 39.9% undervaluation based on DCF analysis. Despite an unstable dividend history, the company has experienced substantial earnings growth of 701% over the past year and is projected to continue growing earnings by 9.66% annually. Revenue forecasts also exceed Swiss market expectations with a steady 5% annual increase, supporting Sulzer's potential as an undervalued stock in Switzerland based on cash flows.
Key Takeaways
Take a closer look at our Undervalued SIX Swiss Exchange Stocks Based On Cash Flows list of 14 companies by clicking 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:BARN SWX:SIKA and SWX:SUN.
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