Exploring Three Growth Companies With High Insider Ownership On SIX Swiss Exchange
editorial-team@simplywallst.com (Simply Wall St)
4 min read
After a day of fluctuating fortunes, the Swiss stock market found its footing late in the session, with the SMI index closing slightly higher. This recent performance underscores a cautious optimism in Switzerland's economic landscape. In such a market, companies with high insider ownership can be particularly compelling as they often demonstrate strong commitment and confidence from those most familiar with the business.
Top 10 Growth Companies With High Insider Ownership In Switzerland
Overview: INFICON Holding AG specializes in developing instruments for gas analysis, measurement, and control, operating both in Switzerland and internationally, with a market capitalization of CHF 3.55 billion.
Operations: The company generates revenue primarily from its global supply of instrumentation for gas analysis, measurement, and control, totaling $673.71 million.
Insider Ownership: 10.3%
INFICON Holding, a Swiss company with high insider ownership, reported a robust financial performance for 2023 with sales increasing to US$673.71 million and net income rising to US$105.68 million. The company's revenue and earnings growth are outpacing the Swiss market averages, with forecasts suggesting continued expansion in both metrics. Despite this positive outlook, the growth rates, while healthy, are not exceedingly high. INFICON also maintains a strong projected return on equity which is expected to remain impressive in the coming years.
Overview: Temenos AG is a global provider of integrated banking software systems to financial institutions, with a market capitalization of approximately CHF 4.20 billion.
Operations: The company's revenue is derived from the development, marketing, and sale of integrated banking software systems to financial institutions globally.
Insider Ownership: 17.4%
Temenos, a Swiss growth company with significant insider ownership, is trading at 31.3% below its estimated fair value, offering potential upside. While its revenue growth of 7.7% per year lags behind the high-growth benchmark of 20%, it outpaces the Swiss market's 4.4%. Earnings are set to increase by 14.72% annually, surpassing the local market's average. Despite these positives, Temenos faces challenges with a high level of debt and a highly volatile share price recently. Recent enhancements in its cloud-native banking platform and strategic client acquisitions like PC Financial® underscore its commitment to innovation and market expansion.
Overview: VAT Group AG operates globally, specializing in the development, manufacture, and supply of vacuum valves, multi-valve units, vacuum modules, and edge-welded metal bellows with a market capitalization of CHF 14.64 billion.
Operations: The company generates revenue primarily through two segments: Valves, which brought in CHF 782.74 million, and Global Service, contributing CHF 172.87 million.
Insider Ownership: 10.2%
VAT Group, a Swiss company with high insider ownership, reported a decrease in annual sales to CHF 885.32 million and net income to CHF 190.31 million for the year ended December 31, 2023. Despite this decline, earnings are expected to grow by 21.17% annually over the next three years, outpacing the Swiss market's growth rate of 8.3%. The company's return on equity is also projected to be strong at 39.1% in three years' time. However, VAT Group has experienced highly volatile share prices recently and does not exhibit significant insider buying or selling activities over the past three months.
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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.
Companies discussed in this article include SWX:IFCNSWX:TEMN and SWX:VACN
