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Swiss construction mid-cap has scope for impressive growth

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We are looking at Switzerland this week and we have discovered a formerly much-loved Swiss engineering stock that was once the darling of local investors, but is now trading at an incredible 5.4 PE ratio.

The company has a healthy market cap of more than CHF 500m and at its last set of results, achieved above-average margins in the first half of 2022 based on a substantial profit contribution from its real estate unit.

The company said it still expects an EBIT margin of 3.5% in the medium term and it is also maintaining its long-term ambition of an EBIT margin of 4.5% based on sustained improvements in profitability and the positive outlook in core markets.

Before we go into more detail, we also note the stock price is well down at CHF 26.8, which is our entry price for our longer term buy-and-hold portfolio. This is a nice, established Swiss engineering firm which has also just inked some new contracts in the western end of the country in the property space.


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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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