Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide.
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has Sika's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SIKA has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SIKA underperformed the Swiss Chemicals industry which returned 20.7% over the past year.
Return vs Market: SIKA exceeded the Swiss Market which returned 1.2% over the past year.
Price Volatility Vs. Market
How volatile is Sika's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StIs Sika AG (VTX:SIKA) Potentially Undervalued?
1 month ago | Simply Wall StI Built A List Of Growing Companies And Sika (VTX:SIKA) Made The Cut
1 month ago | Simply Wall StDoes Sika AG (VTX:SIKA) Have A Place In Your Dividend Portfolio?
Is Sika 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: SIKA (CHF183.65) is trading above our estimate of fair value (CHF168.84)
Significantly Below Fair Value: SIKA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SIKA is poor value based on its PE Ratio (34.6x) compared to the Chemicals industry average (32.8x).
PE vs Market: SIKA is poor value based on its PE Ratio (34.6x) compared to the Swiss market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: SIKA is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: SIKA is overvalued based on its PB Ratio (8.3x) compared to the CH Chemicals industry average (4.4x).
How is Sika forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SIKA's forecast earnings growth (9.8% per year) is above the savings rate (-0.2%).
Earnings vs Market: SIKA's earnings (9.8% per year) are forecast to grow faster than the Swiss market (8.5% per year).
High Growth Earnings: SIKA's earnings are forecast to grow, but not significantly.
Revenue vs Market: SIKA's revenue (3.7% per year) is forecast to grow faster than the Swiss market (2.3% per year).
High Growth Revenue: SIKA's revenue (3.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SIKA's Return on Equity is forecast to be high in 3 years time (22.3%)
How has Sika performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SIKA has high quality earnings.
Growing Profit Margin: SIKA's current net profit margins (9.3%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: SIKA's earnings have grown by 11.1% per year over the past 5 years.
Accelerating Growth: SIKA's earnings growth over the past year (10.1%) is below its 5-year average (11.1% per year).
Earnings vs Industry: SIKA earnings growth over the past year (10.1%) underperformed the Chemicals industry 10.1%.
Return on Equity
High ROE: Whilst SIKA's Return on Equity (23.99%) is high, this metric is skewed due to their high level of debt.
How is Sika's financial position?
Financial Position Analysis
Short Term Liabilities: SIKA's short term assets (CHF3.5B) exceed its short term liabilities (CHF1.8B).
Long Term Liabilities: SIKA's short term assets (CHF3.5B) do not cover its long term liabilities (CHF5.0B).
Debt to Equity History and Analysis
Debt Level: SIKA's debt to equity ratio (128.9%) is considered high.
Reducing Debt: SIKA's debt to equity ratio has increased from 39.9% to 128.9% over the past 5 years.
Debt Coverage: SIKA's debt is well covered by operating cash flow (29.8%).
Interest Coverage: SIKA's interest payments on its debt are well covered by EBIT (19.8x coverage).
What is Sika current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SIKA's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.95%).
High Dividend: SIKA's dividend (1.25%) is low compared to the top 25% of dividend payers in the Swiss market (3.91%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether SIKA's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if SIKA's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.4%), SIKA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SIKA's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Schuler (65yo)
Mr. Paul Schuler, MBA, has been Chief Executive Officer at Sika AG since July 1, 2017 and has been its Member of Group Management since 2007. Mr. Schuler served as Regional Manager of Europe, Middle East a ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD4.59M) is below average for companies of similar size in the Swiss market ($USD6.66M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
|CEO & Member of Group Management||3yrs||CHF4.33m||0.056% CHF14.6m|
|Chief Financial Officer||6.33yrs||no data||0.015% CHF3.9m|
|CTO & Member of Group Management||3.25yrs||no data||0.0057% CHF1.5m|
|Head of Corporate Communications & Investor Relations||no data||no data||no data|
|General Counsel & Secretary of the Board||no data||no data||no data|
|Head of Infrastructure & Mining||3.25yrs||no data||no data|
|Head Technology Center Spain and Corporate Technology Head of Refurbishment||no data||no data||no data|
|Head of Global Business & Industry||9.5yrs||no data||0.015% CHF3.8m|
|Head of Construction||1.5yrs||no data||0.0028% CHF739.3k|
|Head of Procurement||no data||no data||no data|
Experienced Management: SIKA's management team is considered experienced (3.3 years average tenure).
|Chairman of the Board||8.25yrs||CHF953.85k||0.035% CHF9.2m|
Experienced Board: SIKA's board of directors are considered experienced (8.4 years average tenure).
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.
Sika AG's company bio, employee growth, exchange listings and data sources
- Name: Sika AG
- Ticker: SIKA
- Exchange: SWX
- Founded: 1910
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: CHF26.030b
- Shares outstanding: 141.74m
- Website: https://www.sika.com
Number of Employees
- Sika AG
- Zugerstrasse 50
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SXYA.Y||OTCPK (Pink Sheets LLC)||UNSPONSORD ADR||US||USD||May 2013|
|0Z4C||LSE (London Stock Exchange)||Yes||Registered Shares||GB||CHF||Jun 2018|
|SIKA||SWX (SIX Swiss Exchange)||Yes||Registered Shares||CH||CHF||Jun 2018|
|SIKA||DB (Deutsche Boerse AG)||Yes||Registered Shares||DE||EUR||Jun 2018|
|SKFO.F||OTCPK (Pink Sheets LLC)||Yes||Registered Shares||US||USD||Jun 2018|
|SIKA N||BMV (Bolsa Mexicana de Valores)||Yes||Registered Shares||MX||MXN||Jun 2018|
Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and tile grouts, and systems for under-tile waterproofing and sound reduction, as well as products for exterior and interior walls, such as wall-levelling products, decorative finish renders, and facade external insulation finish systems; and develops and markets various admixtures and additives for use in concrete, cement, and mortar production, as well as single-ply and built-up flat roofing systems. It also provides a range of technologies used for below and aboveground waterproofing, including flexible membrane systems, liquid applied membranes, joint waterproofing systems, waterproofing mortars and mortar admixtures, and injection resins and grouts for use in various markets, such as commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, tapes, spray foams, and elastic adhesives for the building envelope, interior finishing, and infrastructure construction applications. Further, the company provides repair, strengthening, and protective solutions for concrete structures, such as repair mortars, nonshrinking grouts, anchoring adhesives, protective coatings, and corrosion control and structural strengthening systems. It serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessels, industrial lamination, renewable energies, and facade engineering industries. Sika AG was founded in 1910 and is headquartered in Baar, Switzerland.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/04 20:50|
|End of Day Share Price||2020/07/03 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.