SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific.
Price History & Performance
|Historical stock prices|
|Current Share Price||CHF2,783.00|
|52 Week High||CHF2,253.00|
|52 Week Low||CHF2,951.00|
|1 Month Change||-3.37%|
|3 Month Change||-4.92%|
|1 Year Change||16.93%|
|3 Year Change||23.31%|
|5 Year Change||38.39%|
|Change since IPO||938.43%|
Recent News & Updates
SGS (VTX:SGSN) Could Easily Take On More Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
SGS (VTX:SGSN) Looks To Prolong Its Impressive Returns
To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...
We Think SGS (VTX:SGSN) Can Stay On Top Of Its Debt
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Should You Buy SGS SA (VTX:SGSN) For Its Dividend?
Is SGS SA ( VTX:SGSN ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be...
|SGSN||CH Professional Services||CH Market|
Return vs Industry: SGSN underperformed the Swiss Professional Services industry which returned 25.1% over the past year.
Return vs Market: SGSN underperformed the Swiss Market which returned 21.7% over the past year.
Stable Share Price: SGSN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: SGSN's weekly volatility (2%) has been stable over the past year.
About the Company
SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in nine segments: Agriculture, Food and Life; Mineral Services; Oil, Gas and Chemicals Services; Consumer and Retail Services; Certification and Business Enhancement; Industrial Services; Environment, Health and Safety Services; Transportation Services; and Governments and Institutions Services. The company offers inspection services to reduce risk, control quality and quantity, and meet relevant regulatory requirements in various regions and markets; and product testing services.
SGS Fundamentals Summary
|SGSN fundamental statistics|
Is SGSN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SGSN income statement (TTM)|
|Cost of Revenue||CHF3.37b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Jan 27, 2022
|Earnings per share (EPS)||77.52|
|Net Profit Margin||9.61%|
How did SGSN perform over the long term?See historical performance and comparison
2.9%Current Dividend Yield
Is SGS undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SGSN (CHF2783) is trading above our estimate of fair value (CHF2738.06)
Significantly Below Fair Value: SGSN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SGSN is poor value based on its PE Ratio (35.9x) compared to the European Professional Services industry average (30.2x).
PE vs Market: SGSN is poor value based on its PE Ratio (35.9x) compared to the Swiss market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: SGSN is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: SGSN is overvalued based on its PB Ratio (24.2x) compared to the XE Professional Services industry average (3x).
How is SGS forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SGSN's forecast earnings growth (8.2% per year) is above the savings rate (-0.3%).
Earnings vs Market: SGSN's earnings (8.2% per year) are forecast to grow slower than the Swiss market (9.2% per year).
High Growth Earnings: SGSN's earnings are forecast to grow, but not significantly.
Revenue vs Market: SGSN's revenue (4.6% per year) is forecast to grow slower than the Swiss market (5.1% per year).
High Growth Revenue: SGSN's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SGSN's Return on Equity is forecast to be very high in 3 years time (61.3%).
How has SGS performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SGSN has high quality earnings.
Growing Profit Margin: SGSN's current net profit margins (9.6%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: SGSN's earnings have declined by 1.5% per year over the past 5 years.
Accelerating Growth: SGSN's earnings growth over the past year (28%) exceeds its 5-year average (-1.5% per year).
Earnings vs Industry: SGSN earnings growth over the past year (28%) underperformed the Professional Services industry 31.1%.
Return on Equity
High ROE: Whilst SGSN's Return on Equity (64.64%) is outstanding, this metric is skewed due to their high level of debt.
How is SGS's financial position?
Financial Position Analysis
Short Term Liabilities: SGSN's short term assets (CHF2.8B) exceed its short term liabilities (CHF2.2B).
Long Term Liabilities: SGSN's short term assets (CHF2.8B) do not cover its long term liabilities (CHF3.7B).
Debt to Equity History and Analysis
Debt Level: SGSN's debt to equity ratio (341.2%) is considered high.
Reducing Debt: SGSN's debt to equity ratio has increased from 106.1% to 341.2% over the past 5 years.
Debt Coverage: SGSN's debt is well covered by operating cash flow (34.2%).
Interest Coverage: SGSN's interest payments on its debt are well covered by EBIT (35.1x coverage).
What is SGS current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SGSN's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Swiss market (1.37%).
High Dividend: SGSN's dividend (2.87%) is low compared to the top 25% of dividend payers in the Swiss market (3.66%).
Stability and Growth of Payments
Stable Dividend: SGSN's dividends per share have been stable in the past 10 years.
Growing Dividend: SGSN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (103%), SGSN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SGSN's dividends in 3 years are forecast to be covered by earnings (83.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Frankie Ng (55 yo)
Mr. Frankie Ng has been the Chief Executive Officer of SGS SA since March 12, 2015. He served as Chief Operating Officer of NORTH AMERICA at SGS SA from July 2019 until 2021 and was its Executive Vice Pres...
CEO Compensation Analysis
Compensation vs Market: Insufficient data to establish whether Frankie's total compensation is reasonable compared to companies of similar size in the Swiss market.
Compensation vs Earnings: Frankie's compensation has been consistent with company performance over the past year.
Experienced Management: SGSN's management team is seasoned and experienced (6.6 years average tenure).
Experienced Board: SGSN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SGS SA's employee growth, exchange listings and data sources
- Name: SGS SA
- Ticker: SGSN
- Exchange: SWX
- Founded: 1878
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: CHF20.859b
- Shares outstanding: 7.50m
- Website: https://www.sgs.com
Number of Employees
- SGS SA
- 1 Place Des Alpes
- PO Box 2152
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/23 17:05|
|End of Day Share Price||2021/10/22 00:00|
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.