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SIKA

SikaSWX:SIKA Stock Report

Market Cap

CHF46.4b

7D

-0.09%

1Y

48.3%

Updated

23 Sep, 2021

Data

Company Financials +
SIKA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends0/6

SIKA Overview

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 automotive industry worldwide.

Sika Competitors

EMS-CHEMIE HOLDING

SWX:EMSN

CHF21.9b

Thermo Fisher Scientific

NYSE:TMO

US$238.7b

3M

NYSE:MMM

US$104.1b

Sherwin-Williams

NYSE:SHW

US$76.5b

Price History & Performance

Summary of all time highs, changes and price drops for Sika
Historical stock prices
Current Share PriceCHF327.30
52 Week HighCHF218.30
52 Week LowCHF336.10
Beta0.64
1 Month Change-1.30%
3 Month Change7.59%
1 Year Change48.30%
3 Year Change127.61%
5 Year Changen/a
Change since IPO122.81%

Recent News & Updates

Sep 16
Sika (VTX:SIKA) Seems To Use Debt Rather Sparingly

Sika (VTX:SIKA) Seems To Use Debt Rather Sparingly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 05
Here's Why I Think Sika (VTX:SIKA) Might Deserve Your Attention Today

Here's Why I Think Sika (VTX:SIKA) Might Deserve Your Attention Today

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Jun 14
Is Sika (VTX:SIKA) Using Too Much Debt?

Is Sika (VTX:SIKA) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

SIKACH ChemicalsCH Market
7D-0.09%-0.9%-0.6%
1Y48.3%26.9%19.6%

Return vs Industry: SIKA exceeded the Swiss Chemicals industry which returned 24.2% over the past year.

Return vs Market: SIKA exceeded the Swiss Market which returned 17.3% over the past year.

Price Volatility

Is SIKA's price volatile compared to industry and market?
SIKA volatility
SIKA Beta0.64
Industry Beta0.56
Market Beta1

Stable Share Price: SIKA is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SIKA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191025,274Thomas Haslerhttps://www.sika.com

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 automotive industry worldwide. It offers tile adhesives and grouts, and systems for under-tile waterproofing and sound reduction, as well as renders and decorative finishes for exterior and interior walls; and develops and markets various admixtures and additives for use in concrete, cement, and mortar production, as well as flat roofing systems. The company 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.

Sika Fundamentals Summary

How do Sika's earnings and revenue compare to its market cap?
SIKA fundamental statistics
Market CapCHF46.40b
Earnings (TTM)CHF1.04b
Revenue (TTM)CHF8.71b

44.5x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIKA income statement (TTM)
RevenueCHF8.71b
Cost of RevenueCHF4.00b
Gross ProfitCHF4.71b
ExpensesCHF3.67b
EarningsCHF1.04b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 22, 2021

Earnings per share (EPS)7.37
Gross Margin54.12%
Net Profit Margin11.98%
Debt/Equity Ratio104.3%

How did SIKA perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

44.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIKA (CHF327.3) is trading above our estimate of fair value (CHF271.05)

Significantly Below Fair Value: SIKA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SIKA is good value based on its PE Ratio (44.5x) compared to the Swiss Chemicals industry average (47.4x).

PE vs Market: SIKA is poor value based on its PE Ratio (44.5x) compared to the Swiss market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SIKA is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: SIKA is overvalued based on its PB Ratio (12.6x) compared to the CH Chemicals industry average (6.9x).


Future Growth

How is Sika forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIKA's forecast earnings growth (11.3% per year) is above the savings rate (-0.3%).

Earnings vs Market: SIKA's earnings (11.3% per year) are forecast to grow faster than the Swiss market (9.6% per year).

High Growth Earnings: SIKA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIKA's revenue (6.6% per year) is forecast to grow faster than the Swiss market (5.1% per year).

High Growth Revenue: SIKA's revenue (6.6% 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 (24.6%)


Past Performance

How has Sika performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIKA has high quality earnings.

Growing Profit Margin: SIKA's current net profit margins (12%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: SIKA's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: SIKA's earnings growth over the past year (49.2%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: SIKA earnings growth over the past year (49.2%) exceeded the Chemicals industry 12.7%.


Return on Equity

High ROE: Whilst SIKA's Return on Equity (28.42%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Sika's financial position?


Financial Position Analysis

Short Term Liabilities: SIKA's short term assets (CHF4.1B) exceed its short term liabilities (CHF2.1B).

Long Term Liabilities: SIKA's short term assets (CHF4.1B) do not cover its long term liabilities (CHF4.6B).


Debt to Equity History and Analysis

Debt Level: SIKA's debt to equity ratio (104.3%) is considered high.

Reducing Debt: SIKA's debt to equity ratio has increased from 27.3% to 104.3% over the past 5 years.

Debt Coverage: SIKA's debt is well covered by operating cash flow (37.3%).

Interest Coverage: SIKA's interest payments on its debt are well covered by EBIT (29.6x coverage).


Balance Sheet


Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIKA's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.38%).

High Dividend: SIKA's dividend (0.76%) is low compared to the top 25% of dividend payers in the Swiss market (3.61%).


Stability and Growth of Payments

Stable Dividend: SIKA is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.

Growing Dividend: SIKA is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SIKA is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIKA's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Thomas Hasler (56 yo)

0.33

Tenure

Mr. Thomas Hasler, Dipl. Ing. Chem. HTl, MBA, served as Head of Global Business and Industry of Sika AG since April 01, 2018 until 2021 and serves as its Chief Executive Officer since May 01, 2021. He was...


Leadership Team

Experienced Management: SIKA's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: SIKA's board of directors are considered experienced (3.3 years average tenure).


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

Sika AG's employee growth, exchange listings and data sources


Key Information

  • Name: Sika AG
  • Ticker: SIKA
  • Exchange: SWX
  • Founded: 1910
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CHF46.398b
  • Shares outstanding: 141.76m
  • Website: https://www.sika.com

Number of Employees


Location

  • Sika AG
  • Zugerstrasse 50
  • Baar
  • Zug
  • 6341
  • Switzerland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 21:35
End of Day Share Price2021/09/23 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.