### 3 Growth Companies On SIX Swiss Exchange With Up To 29% Insider Ownership ###
editorial-team@simplywallst.com (Simply Wall St)
4 min read
After opening weak and struggling for support till a little past noon, the Switzerland market emerged higher on Wednesday, but retreated soon and eventually ended the day's session on a negative note. Uncertainty about the size of U.S. interest rate cuts and persisting concerns about the outlook for global economic growth weighed on stocks. In such volatile market conditions, companies with strong insider ownership often signal confidence in their future prospects. Here are three growth companies listed on the SIX Swiss Exchange that boast up to 29% insider ownership, which may indicate alignment between management and shareholder interests.
Top 10 Growth Companies With High Insider Ownership In Switzerland
Overview: LEM Holding SA, with a market cap of CHF1.42 billion, provides solutions for measuring electrical parameters across various regions including China, Japan, South Korea, India, Southeast Asia, Europe, Middle East, Africa, NAFTA and Latin America.
Operations: The company's revenue segments are derived from providing solutions for measuring electrical parameters across regions such as China, Japan, South Korea, India, Southeast Asia, Europe, Middle East, Africa, NAFTA and Latin America.
Insider Ownership: 29.9%
LEM Holding's insider ownership aligns with its growth profile, despite some challenges. The company's earnings are forecast to grow at 17.1% annually, outpacing the Swiss market average of 11.6%. However, recent earnings showed a decline in sales to CHF 80.96 million and net income to CHF 4.78 million for Q1 2024 compared to last year. Trading at 32.1% below estimated fair value and with a volatile share price, analysts still expect a potential price rise of 29%.
Overview: Partners Group Holding AG is a private equity firm that specializes in direct, secondary, and primary investments across private equity, real estate, infrastructure, and debt with a market cap of CHF29.03 billion.
Operations: The company's revenue segments are comprised of Private Equity (CHF1.19 billion), Infrastructure (CHF254.90 million), Private Credit (CHF218.90 million), and Real Estate (CHF190.90 million).
Insider Ownership: 17%
Partners Group Holding demonstrates solid growth potential with high insider ownership. Despite a slight decline in net income to CHF 508 million for H1 2024, the company's earnings are forecast to grow at 14.5% annually, outpacing the Swiss market's average of 11.6%. The firm is also involved in significant M&A activities, such as the potential buyout of Lighthouse Learnings. Trading below its estimated fair value and with high return on equity forecasts, Partners Group remains a compelling growth story.
Overview: Temenos AG develops, markets, and sells integrated banking software systems to financial institutions globally, with a market cap of CHF4.33 billion.
Operations: Temenos generates revenue from licensing, SaaS and subscription services ($456.50 million), maintenance ($463.60 million), and services ($214.80 million).
Insider Ownership: 22%
Temenos, trading 24.4% below its estimated fair value, shows strong growth potential with high insider ownership. Its earnings are forecast to grow at 14.3% annually, surpassing the Swiss market's average of 11.6%. Despite a slower revenue growth forecast of 7.6%, recent buybacks and key executive appointments aim to accelerate business expansion in SaaS and the US market. The company's high debt level is a concern but offset by robust return on equity projections of 24.8%.
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.
Companies discussed in this article include SWX:LEHN SWX:PGHN and SWX:TEMN.
