SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific.
Mediocre balance sheet second-rate dividend payer.
Share Price & News
How has SGS's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SGSO.F has not had significant price volatility in the past 3 months.
7 Day Return
US Professional Services
1 Year Return
US Professional Services
Return vs Industry: SGSO.F underperformed the US Professional Services industry which returned 14.6% over the past year.
Return vs Market: SGSO.F underperformed the US Market which returned 16.4% over the past year.
Price Volatility Vs. Market
How volatile is SGS's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
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: SGSO.F ($2650) is trading above our estimate of fair value ($2106.64)
Significantly Below Fair Value: SGSO.F is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SGSO.F is poor value based on its PE Ratio (39.6x) compared to the US Professional Services industry average (21.9x).
PE vs Market: SGSO.F is poor value based on its PE Ratio (39.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: SGSO.F is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: SGSO.F is overvalued based on its PB Ratio (23.2x) compared to the US Professional Services industry average (2.8x).
How is SGS forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SGSO.F's forecast earnings growth (14.4% per year) is above the savings rate (2.2%).
Earnings vs Market: SGSO.F's earnings (14.4% per year) are forecast to grow slower than the US market (23.7% per year).
High Growth Earnings: SGSO.F's earnings are forecast to grow, but not significantly.
Revenue vs Market: SGSO.F's revenue (5% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: SGSO.F's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SGSO.F's Return on Equity is forecast to be very high in 3 years time (46%).
How has SGS performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SGSO.F has high quality earnings.
Growing Profit Margin: SGSO.F's current net profit margins (7.7%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: SGSO.F's earnings have grown by 2.3% per year over the past 5 years.
Accelerating Growth: SGSO.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SGSO.F had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Professional Services industry average (1.3%).
Return on Equity
High ROE: Whilst SGSO.F's Return on Equity (56.01%) 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: SGSO.F's short term assets (CHF2.7B) exceed its short term liabilities (CHF1.9B).
Long Term Liabilities: SGSO.F's short term assets (CHF2.7B) do not cover its long term liabilities (CHF3.1B).
Debt to Equity History and Analysis
Debt Level: SGSO.F's debt to equity ratio (315.4%) is considered high.
Reducing Debt: SGSO.F's debt to equity ratio has increased from 134.1% to 315.4% over the past 5 years.
Debt Coverage: SGSO.F's debt is well covered by operating cash flow (45.2%).
Interest Coverage: SGSO.F's interest payments on its debt are well covered by EBIT (25.6x coverage).
What is SGS current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SGSO.F's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: SGSO.F's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (4.35%).
Stability and Growth of Payments
Stable Dividend: SGSO.F's dividends per share have been stable in the past 10 years.
Growing Dividend: SGSO.F's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (132.7%), SGSO.F's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SGSO.F's dividends in 3 years are not forecast to be well covered by earnings (92.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Frankie Ng (54 yo)
Mr. Frankie Ng serves as Chief Operating Officer at SGS SA since July 2019 and was its Executive Vice President of Transportation (A.I.) since November 2019 until 2020. Mr. Frankie Ng has been the Chief Ex ...
CEO Compensation Analysis
Compensation vs Market: Frankie's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD11.30M).
Compensation vs Earnings: Frankie's compensation has been consistent with company performance over the past year.
|CEO & COO||5.42yrs||no data||no data|
|Chief Financial Officer||1.5yrs||no data||no data|
|Chief Information Officer||1.58yrs||no data||no data|
|Senior Vice President of Corporate Development||no data||no data||no data|
|General Counsel & Chief Compliance Officer||no data||no data||no data|
|Senior Vice President of Human Resources||3.08yrs||no data||no data|
|Chief Operating Officer of North & Central Europe||4.75yrs||no data||no data|
|Global Head of Internal Audit & Senior VP||no data||no data||no data|
|Chief Operating Officer of Eastern Asia||no data||no data||no data|
|Senior Vice President of Digital & Innovation||17.58yrs||no data||no data|
|Executive Vice President of Oil||no data||no data||no data|
|Executive VP of Certification & Business Enhancement||4.92yrs||no data||no data|
Experienced Management: SGSO.F's management team is considered experienced (4.8 years average tenure).
|Director||0.58yr||no data||no data|
|Director||0.58yr||no data||no data|
Experienced Board: SGSO.F's board of directors are considered experienced (7.1 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.
SGS SA's company bio, employee growth, exchange listings and data sources
- Name: SGS SA
- Ticker: SGSO.F
- Exchange: OTCPK
- Founded: 1878
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: CHF18.028b
- Listing Market Cap: CHF19.698b
- Shares outstanding: 7.55m
- Website: https://www.sgs.com
Number of Employees
- SGS SA
- 1 Place Des Alpes
- PO Box 2152
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SGSN||SWX (SIX Swiss Exchange)||Yes||Registered Shares||CH||CHF||Jul 1992|
|0QMI||LSE (London Stock Exchange)||Yes||Registered Shares||GB||CHF||Jul 1992|
|SUVN||DB (Deutsche Boerse AG)||Yes||Registered Shares||DE||EUR||Jul 1992|
|SGSO.F||OTCPK (Pink Sheets LLC)||Yes||Registered Shares||US||USD||Jul 1992|
|SGSO.Y||OTCPK (Pink Sheets LLC)||UNSPONSORED ADR||US||USD||Aug 2004|
|36568077||SWX (SIX Swiss Exchange)||CHF1 (REGD)(2ND BUY BACK)||CH||CHF||May 2017|
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: Agricu ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/11 00:38|
|End of Day Share Price||2020/07/23 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.