Spotlighting Phoenix Mecano And 2 Other Swiss Small Caps with Robust Potential

The Switzerland market ended on a strong note on Wednesday as stocks edged higher, buoyed by expectations of more interest rate cuts by the Federal Reserve and anticipation of the Swiss National Bank's policy announcement. Despite a dip in investor sentiment, small-cap stocks continue to present intriguing opportunities for discerning investors. In this article, we spotlight Phoenix Mecano and two other Swiss small caps that exhibit robust potential amidst these dynamic market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

IVF Hartmann Holding

NA

1.26%

-4.29%

★★★★★★

naturenergie holding

NA

17.32%

34.71%

★★★★★★

TX Group

0.93%

-1.67%

7.21%

★★★★★★

APG|SGA

NA

1.12%

-16.11%

★★★★★★

Datacolor

NA

3.59%

30.14%

★★★★★★

Elma Electronic

36.60%

3.13%

3.10%

★★★★★★

Compagnie Financière Tradition

47.15%

1.91%

11.44%

★★★★★☆

Vaudoise Assurances Holding

NA

1.52%

1.85%

★★★★★☆

lastminute.com

42.65%

4.93%

3.11%

★★★★☆☆

Bergbahnen Engelberg-Trübsee-Titlis

3.00%

-10.81%

-16.31%

★★★★☆☆

Click here to see the full list of 18 stocks from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Phoenix Mecano

Simply Wall St Value Rating: ★★★★★★

Overview: Phoenix Mecano AG, together with its subsidiaries, manufactures and sells components for industrial customers worldwide and has a market cap of CHF443.14 million.

Operations: Phoenix Mecano AG generates revenue primarily from three segments: Enclosure Systems (€218.16 million), Industrial Components (€197.28 million), and Dewertokin Technology Group (€348.00 million).

Phoenix Mecano, a small cap in Switzerland, has shown resilience with earnings growing by 0.7% over the past year, outpacing the Electrical industry which saw -11.1%. The company reported H1 2024 sales of €382.8 million and net income of €17.2 million, slightly lower than last year's figures. Debt to equity ratio improved from 62.6% to 44.8% over five years while maintaining a satisfactory net debt to equity ratio at 13.3%.

SWX:PMN Earnings and Revenue Growth as at Sep 2024
SWX:PMN Earnings and Revenue Growth as at Sep 2024

TX Group

Simply Wall St Value Rating: ★★★★★★

Overview: TX Group AG operates a network of platforms and participations that provides users with information, orientation, entertainment, and support services in Switzerland, with a market cap of CHF1.46 billion.

Operations: Revenue streams include Tamedia (CHF427 million), Goldbach (CHF299.10 million), 20 Minutes (CHF115.60 million), TX Markets (CHF126.40 million), and Groups & Ventures (CHF159.40 million).