OTCPK:SGSO.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has SGS's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:SGSO.F

0.3%

US Professional Services

-1.2%

US Market


1 Year Return

-0.6%

OTCPK:SGSO.F

9.5%

US Professional Services

3.3%

US Market

SGSO.F underperformed the Professional Services industry which returned 10.2% over the past year.

SGSO.F underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

SGSO.FIndustryMarket
7 Day0%0.3%-1.2%
30 Day1.4%4.5%0.8%
90 Day1.6%6.0%0.9%
1 Year-0.6%-0.6%10.5%9.5%5.6%3.3%
3 Year17.7%17.7%45.0%40.2%45.4%35.9%
5 Year11.3%11.3%73.4%64.2%59.4%41.7%

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

Valuation

Is SGS undervalued based on future cash flows and its price relative to the stock market?

24.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SGS's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SGS's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SGS is overvalued based on earnings compared to the US Professional Services industry average.

SGS is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

SGS is poor value based on expected growth next year.


Price Based on Value of Assets

SGS is overvalued based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

How is SGS expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SGS's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

SGS's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

SGS's revenue growth is positive but not above the United States of America market average.

SGS's earnings growth is positive but not above the United States of America market average.

SGS's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SGS is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has SGS performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SGS's year on year earnings growth rate has been positive over the past 5 years.

SGS's 1-year earnings growth exceeds its 5-year average (20.5% vs 2.8%)

SGS's earnings growth has not exceeded the US Professional Services industry average in the past year (20.5% vs 31.2%).


Return on Equity

Whilst SGS made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

SGS used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

SGS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SGS's financial position?


Financial Position Analysis

SGS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SGS's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SGS's level of debt (168.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (83.7% vs 168.6% today).

Debt is well covered by operating cash flow (47.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 38.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

3.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SGS's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

SGS's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of SGS's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Frankie Ng (53yo)

4.3yrs

Tenure

Mr. Frankie Ng has been the Chief Executive Officer of SGS SA since March 12, 2015. Mr. Ng has been the Chief Executive Officer at SGS Korea Co., Ltd. since March 12, 2015. Mr. Ng served as an Executive Vi ...


CEO Compensation Analysis

Frankie's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Frankie to compare compensation growth.


Management Age and Tenure

2.8yrs

Average Tenure

59.5yo

Average Age

The tenure for the SGS management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the SGS board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Ewald van der Helm

    Global Head of Internal Audit & Senior VP

  • Frankie Ng (53yo)

    Chief Executive Officer

    • Tenure: 4.3yrs
  • Dirk Hellemans (61yo)

    Chief Operating Officer of North & Central Europe

    • Tenure: 3.7yrs
  • Dennis Yang (70yo)

    Chief Operating Officer of Eastern Asia

  • Olivier Merkt (57yo)

    General Counsel & Chief Compliance Officer

  • Fred Herren (64yo)

    Senior Vice President of Digital & Innovation

    • Tenure: 16.5yrs
  • Jean-Luc de Buman (66yo)

    Senior Vice President of Corporate Development

  • Christoph Heidler

    Chief Information Officer

    • Tenure: 0.5yrs
  • José Hernández-Sampelayo (58yo)

    Senior Vice President of Human Resources

    • Tenure: 2.0yrs
  • Dominik de Daniel (44yo)

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Peter Kalantzis (74yo)

    Chairman of the Board

    • Tenure: 1.0yrs
    • Compensation: CHF259.00k
  • Kory Sorenson (51yo)

    Director

    • Tenure: 0.5yrs
  • Paul Desmarais (65yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: CHF150.00k
  • Shelby du Pasquier (59yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: CHF210.00k
  • Luitpold von Finck (48yo)

    Director

    • Tenure: 0.5yrs
  • Cornelius Grupp (72yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: CHF180.00k
  • Gérard Lamarche (58yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: CHF180.00k
  • August von Finck (51yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: CHF180.00k
  • Calvin Grieder (64yo)

    Director

    • Tenure: 0.5yrs
  • Ian Gallienne (48yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: CHF180.00k

Company Information

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


Key Information

  • Name: SGS SA
  • Ticker: SGSO.F
  • Exchange: OTCPK
  • Founded: 1878
  • Industry: research and consulting services
  • Sector: commercial services
  • Market Cap: CHF18.167b
  • Listing Market Cap: CHF18.494b
  • Shares outstanding: 7.55m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGSNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJul 1992
0QMILSE (London Stock Exchange)YesRegistered SharesGBCHFJul 1992
SUVNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJul 1992
SGSO.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJul 1992
SGSO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2004
SGSNESWX (SIX Swiss Exchange)CHF1 (REGD)(2ND BUY BACK)CHCHFMay 2017

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 02:55
End of Day Share Price2019/06/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.