Another week, another 10 Swiss stocks, this time with one stock to “watch”.
31. Plaza AG
Plazza is a real estate company with a market capitalization of CHF 581 million that invests in and around Zurich. The company appears to be trading close to NAV and I normally don’t consider publicly traded real estate to be part of my investment universe, so I will “consist”.
32. Komax AG
Komax is a company with a market capitalization of CHF 831 million that supplies cable automation machines primarily to automobile manufacturers, but also to the aerospace and other industries. As an automotive supplier, business already suffered in 2019 before being hit again in 2020.
The stock chart shows a clear cyclicality, which is no surprise:
The share price has already recovered despite a relatively cautious management outlook for 2021 (~ 10% vs. 2019). In the medium term the company is aiming for an EBIT of 50-80 million pa. Overall, the company looks a bit interesting, but I’m not sure if it’s the best way to invest in the automotive supply industry at this point. So i will “consist”.
33. Thurgauer Kantonalbank PS
Thurgauer Kantonalbank is a local bank with a market capitalization of 2.1 billion euros that has listed “equity rights” that are similar to preferred shares. The stock trades at around book value and ~ 15x P / E, with a dividend yield of 3%. The bank looks super solid, profitability seems fine. This could be interesting for Swiss private investors hungry for returns, but I’ll be happy to come “consist”.
34. VAT Group AG
The Vat Group describes itself as the world market leader in “vacuum valve technology”. The company with a market capitalization of CHF 8.1 billion benefits from good margins (31% EBITDA margin) and sells mainly to the semiconductor industry worldwide. Depending on the definition, the company states market shares of between 50-70% worldwide, which suggests that it could be a “hidden global champion”.
However, the share price shows that this has already been noticed by investors:
The company managed to increase sales by more than + 20% and net profit by + 80% in 2020. In the current valuation, however, this means a trailing P / E ratio of around 60x. The company expects significant mid-teens revenue growth in 2021, although the first quarter started off a bit slow with only low single-digit revenue growth.
Again, VAT looks like a super interesting company, but with a high price tag, so I will “consist” for the time being.
35. Orascom Development Holding
Orascom is a company with a market capitalization of CHF 475 million, nominally based in Switzerland, but mainly active as a developer / owner of real estate mainly in the Arab world. The annual reports have great pictures from the departments, but the company has been making losses since 2018. “Consist”.
36. Coltene AG
Coltene is a company with a market capitalization of CHF 754 million that offers a wide range of consumables for the dental industry / dentists. The company sells more than 50% of its products in North America. 2020 wasn’t that good as visiting the dentist wasn’t that popular during Covid, but Coltene managed to make a profit despite a -10% drop in sales. The profit would have been higher if they hadn’t sold a Brazilian submarine at a loss.
If you look at the share price, you can see that the share has more than fully recovered since March 2020:
At ~ CHF 120 per share, Coltene is trading around 36x earnings in 2019, despite the fact that earnings have been declining since 2017. Perhaps this was driven by their infection control segment, which could benefit from Covid. Although the business seems to be quite profitable (~ 12% EBIT margin in 2019), I somehow don’t feel the urge to take a closer look, so I’ll be I. “consist”.
37. EMS Chemie AG
EMS Chemie is a chemical company with a market capitalization of CHF 19.7 billion and a very remarkable share chart:
The stock has managed to hit 10x in the past 10 years. Also noteworthy is the fact that they account for ~ 28% of the EBIT margin, which is even more remarkable for a company that produces around 50% of its products in Switzerland.
The majority of the company is owned by the Blocher family. Patriarch Christoph Blocher is a somewhat controversial “nationalist” politician in Switzerland. EMS managed to more than double its EPS from 2010 to 2020, but the big kick came from a multiple expansion from around 10x in 2010 to> 40 today.
On the one hand it would be really interesting to understand how they manage to get these results, on the other hand I don’t think I have the time for it so I will “consist”.
38. Perfect Holding AG
Despite its name, Perfect is a “penny stock” with a market capitalization of CHF 12 million. You’re doing something with aviation, but it’s not that clear what it actually is. You are not making a profit. “Consist”.
39. OK Oerlikon AG
Oerlikon is a Siwss Industrial Group with a market capitalization of CHF 3.5 billion, which is one of the companies in which the Russian oligarch Viktor Wechselberg holds a significant stake (~ 40%).
At first glance, the company doesn’t seem very profitable, and even on the basis of “Adjusted EBITDA” it doesn’t look that good.
Since I want to stay away from evil looking Russian oligarchs, I will “consist” without further analysis.
40. Vetropack AG
Vetropack, a manufacturer of glass bottles with a market capitalization of CHF 740 million, was actually in my blog portfolio from 2010, but I sold the shares in 2014. The company was heavily involved in Eastern Europe, with Ukraine being the main growth market. A look at the chart shows that the share has not performed so well since 2014:
Vetropack is clearly one of the cheapest stocks in Switzerland. The company is controlled by the Cornaz family who own almost 70% of the voting rights thanks to an A / B share structure where privately held B shares have five times the voting rights of A shares. The company is trading at a profit of around 20x in 2019 and manages to achieve double-digit EBIT margins. The return on investment is relatively low, but that is to be expected for a capital intensive business.
Even so, the company earns on that “Clock” List for a deeper dive.