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SGSN

SGSSWX:SGSN Stock Report

Market Cap

CHF20.9b

7D

1.3%

1Y

16.9%

Updated

23 Oct, 2021

Data

Company Financials +
SGSN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends4/6

SGSN Overview

SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific.

SGS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SGS
Historical stock prices
Current Share PriceCHF2,783.00
52 Week HighCHF2,253.00
52 Week LowCHF2,951.00
Beta0.68
1 Month Change-3.37%
3 Month Change-4.92%
1 Year Change16.93%
3 Year Change23.31%
5 Year Change38.39%
Change since IPO938.43%

Recent News & Updates

Sep 01
SGS (VTX:SGSN) Could Easily Take On More Debt

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...

Jul 27
SGS (VTX:SGSN) Looks To Prolong Its Impressive Returns

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...

May 25
We Think SGS (VTX:SGSN) Can Stay On Top Of Its Debt

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...

May 06
Should You Buy SGS SA (VTX:SGSN) For Its Dividend?

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...

Shareholder Returns

SGSNCH Professional ServicesCH Market
7D1.3%1.5%0.6%
1Y16.9%25.1%21.7%

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.

Price Volatility

Is SGSN's price volatile compared to industry and market?
SGSN volatility
SGSN Beta0.68
Industry Beta0.68
Market Beta1

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

FoundedEmployeesCEOWebsite
187892,143Frankie Nghttps://www.sgs.com

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

How do SGS's earnings and revenue compare to its market cap?
SGSN fundamental statistics
Market CapCHF20.86b
Earnings (TTM)CHF581.00m
Revenue (TTM)CHF6.05b

35.9x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGSN income statement (TTM)
RevenueCHF6.05b
Cost of RevenueCHF3.37b
Gross ProfitCHF2.68b
ExpensesCHF2.10b
EarningsCHF581.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)77.52
Gross Margin44.26%
Net Profit Margin9.61%
Debt/Equity Ratio341.2%

How did SGSN perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

103%

Payout Ratio

Valuation

Is SGS undervalued compared to its fair value and its price relative to the market?

35.9x

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).


Future Growth

How is SGS forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.2%

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%).


Past Performance

How has SGS performed over the past 5 years?

-1.5%

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.


Financial Health

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).


Balance Sheet


Dividend

What is SGS current dividend yield, its reliability and sustainability?

2.87%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Frankie Ng (55 yo)

6.58yrs

Tenure

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.


Leadership Team

Experienced Management: SGSN's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: SGSN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SGS SA's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • SGS SA
  • 1 Place Des Alpes
  • PO Box 2152
  • Geneva
  • Geneva
  • 1211
  • Switzerland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 17:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.