SWX:SUN

Stock Analysis Report

Executive Summary

Sulzer Ltd provides products and services for the oil and gas, power, water, and other markets in Switzerland and internationally.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Sulzer's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

SWX:SUN

-2.0%

CH Machinery

-0.5%

CH Market


1 Year Return

-23.4%

SWX:SUN

-19.0%

CH Machinery

2.7%

CH Market

SUN underperformed the Machinery industry which returned -19% over the past year.

SUN underperformed the Market in Switzerland which returned 2.7% over the past year.


Share holder returns

SUNIndustryMarket
7 Day-0.6%-2.0%-0.5%
30 Day-13.5%-6.8%-1.8%
90 Day-10.0%-6.5%1.4%
1 Year-20.6%-23.4%-16.7%-19.0%8.1%2.7%
3 Year4.0%-5.5%14.0%6.0%29.4%16.2%
5 Year4.9%-25.6%35.8%15.8%32.8%12.2%

Price Volatility Vs. Market

How volatile is Sulzer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sulzer undervalued based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sulzer's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sulzer's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sulzer is overvalued based on earnings compared to the CH Machinery industry average.

Sulzer is overvalued based on earnings compared to the Switzerland market.


Price Based on Expected Growth

Sulzer is poor value based on expected growth next year.


Price Based on Value of Assets

Sulzer is overvalued based on assets compared to the CH Machinery industry average.


Next Steps

Future Growth

How is Sulzer expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sulzer's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Sulzer's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

Sulzer's revenue growth is positive but not above the Switzerland market average.

Sulzer's earnings growth is expected to exceed the Switzerland market average.

Sulzer's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Sulzer is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sulzer performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sulzer has delivered over 20% year on year earnings growth in the past 5 years.

Sulzer's 1-year earnings growth is less than its 5-year average (16% vs 38.2%)

Sulzer's earnings growth has exceeded the CH Machinery industry average in the past year (16% vs 5.5%).


Return on Equity

Sulzer has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sulzer used its assets less efficiently than the CH Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Sulzer's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sulzer's financial position?


Financial Position Analysis

Sulzer is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sulzer's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sulzer's level of debt (83.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (20% vs 83.5% today).

Debt is well covered by operating cash flow (22.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

What is Sulzer's current dividend yield, its reliability and sustainability?

4.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sulzer's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (2.03%).

Sulzer's dividend is below the markets top 25% of dividend payers in Switzerland (3.89%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Sulzer's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Greg Poux-Guillaume (49yo)

3.7yrs

Tenure

CHF5,846,000

Compensation

Mr. Grégoire Poux-Guillaume, also known as Greg, has been the Chief Executive Officer at Sulzer, Ltd., since December 1, 2015 and was its Ad Interim Chief Financial Officer until 2018. Mr. Poux-Guillaume s ...


CEO Compensation Analysis

Greg's remuneration is higher than average for companies of similar size in Switzerland.

Greg's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

The tenure for the Sulzer management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

The tenure for the Sulzer board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Philipp Süess

    Head of Europe & America - Sulzer Chemtech

    • Tenure: 0.0yrs
  • Urs Probst

    Head of Europe - Markets & Technology

    • Tenure: 0.0yrs
  • Walter Herter

    Head of Asia Pacific - Markets & Technology

    • Tenure: 0.0yrs
  • Bruno Gerig

    Head of Human Resources - Sulzer Metco

    • Tenure: 0.0yrs
  • Keith Dowle

    Head of Europe & Middle East Operations - Sulzer Pumps

    • Tenure: 0.0yrs
  • Richard Müller

    Head of Finance & Controlling - Sulzer Turbo Services

    • Tenure: 13.8yrs
  • Jill Lee (56yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: CHF36.00k
  • Christoph Ladner

    Head of Group Communications and Investor Relations

    • Tenure: 5.2yrs
  • Greg Poux-Guillaume (49yo)

    Chief Executive Officer

    • Tenure: 3.7yrs
    • Compensation: CHF5.85m
  • Armand Sohet (54yo)

    Chief Human Resources Officer

    • Tenure: 3.4yrs

Board Members

  • Gerhard Roiss (67yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: CHF273.00k
  • Peter Löscher (62yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: CHF765.00k
  • Hanne Birgitte Breinbjerg Sørensen (54yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CHF260.00k
  • Matthias Bichsel (65yo)

    Vice Chairman

    • Tenure: 4.3yrs
    • Compensation: CHF321.00k
  • Lukas Braunschweiler (63yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CHF226.00k
  • Marco Musetti (50yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: CHF270.00k
  • Mikhail Lifshitz (56yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CHF254.00k

Company Information

Sulzer Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sulzer Ltd
  • Ticker: SUN
  • Exchange: SWX
  • Founded: 1834
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CHF3.096b
  • Shares outstanding: 34.06m
  • Website: https://www.sulzer.com

Number of Employees


Location

  • Sulzer Ltd
  • Neuwiesenstrasse 15
  • Winterthur
  • Zurich
  • 8401
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1992
SUL1DB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
0QQ9LSE (London Stock Exchange)YesRegistered SharesGBCHFJan 1992
SULZ.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992

Biography

Sulzer Ltd provides products and services for the oil and gas, power, water, and other markets in Switzerland and internationally. The company operates through Pumps Equipment, Rotating Equipment Services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:39
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.