SIG Group AG (SIGN) AI Stock Analysis

• Market Cap: $6.38B
• Dividend Yield: 2.93%
• Average Volume (3M): 812.45K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.78
• Revenue Growth: 1.05%
• EPS Growth: -21.04%
• Country: CH
• Employees: 8,142
• Sector: General
• Sector Strength: N/A
• Industry: Packaging & Containers
• EPS (TTM): 0.46
• Shares Outstanding: 382,270,870
• 10 Day Avg. Volume: 643,406
• 30 Day Avg. Volume: 812,452
• PEG Ratio: -2.26
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.66
• Price Target Upside: 18.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: CHF18.50 ▲(11.92%Upside)

SIG Group AG's overall stock score reflects strong financial performance, supported by stable revenue growth and operational efficiency. The technical analysis suggests neutral market sentiment, while high valuation metrics pose some risk. The absence of earnings call insights and notable corporate events limits additional context.

Positive Factors

Debt Management

The company successfully reduced its net debt substantially in Q4-24, improving its leverage ratio significantly.

Financial Performance

Adjusted Q1 EBITDA of €166m beat market expectations by +2%, with a margin higher than consensus.

Guidance

2025 unchanged guidance is reassuring, with top-line growth of 3-5% and mid-point adj. EBITDA margin target range above 2024 performance.

Negative Factors

Operational Challenges

The Americas' performance was impacted by production bottlenecks and a soft out-of-home dining market in the US.

Regional Performance

The company's revenue growth in Europe and IMEA regions and resilience in APAC offset declines in the Americas.

SIG Group AG Business Overview & Revenue Model

Company Description

SIG Group AG (SIGN) is a leading provider of packaging solutions primarily for the food and beverage industries. Headquartered in Switzerland, the company specializes in the design and manufacture of aseptic carton packaging, which ensures the long-term preservation and safe transportation of liquid and semi-liquid products. SIG serves a diverse range of sectors, including dairy, non-carbonated soft drinks, and liquid food products, through its innovative packaging systems and comprehensive service offerings.

How the Company Makes Money

SIG Group AG generates revenue through the sale of its aseptic carton packaging systems, which include both the packaging materials and the high-performance filling machines. The company offers a range of carton sizes and configurations, catering to different market needs and consumer preferences. Key revenue streams include direct sales of packaging materials and lease or sales agreements for its filling machines. Additionally, SIG Group AG provides technical support and maintenance services, creating ongoing revenue opportunities. Strategic partnerships with leading food and beverage companies worldwide and a focus on sustainable, eco-friendly packaging solutions further enhance SIG's market presence and contribute to its financial performance.

SIG Group AG Financial Statement Overview

Summary

SIG Group AG demonstrates strong financial performance with consistent revenue growth and stable operational efficiency. Despite a slight decline in net profit margins and ROE, the company maintains a healthy balance sheet and strong cash flow generation.

Income Statement

The company has demonstrated consistent revenue growth with a positive trend in gross profit margin and net profit margin over the years. The gross profit margin improved to 23.16% in 2024 from 23.56% in 2023. Net profit margin experienced a slight decline from 7.53% in 2023 to 5.84% in 2024, indicating some pressure on net income. However, the revenue growth rate between 2023 and 2024 was 3.04%, which is moderate but positive. EBIT and EBITDA margins are stable, indicating good operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at 0.79, which suggests a significant level of leverage but is consistent with industry standards. Return on equity (ROE) decreased from 7.85% in 2023 to 6.21% in 2024, reflecting a drop in net income relative to equity. The equity ratio is stable at 40.73%, showing a balanced approach between debt and equity financing.

Cash Flow

Operating cash flow remains strong, although free cash flow growth slowed to 28.29% in 2024 from a higher growth rate in 2023. The operating cash flow to net income ratio is robust, indicating that earnings are well supported by cash flow. Free cash flow to net income ratio is favorable, showing effective conversion of net income into free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.26B	3.33B	3.23B	2.78B	2.06B	1.82B
	Gross Profit
741.50M	771.20M	761.40M	575.20M	484.60M	393.90M
	EBIT
409.20M	424.10M	449.10M	159.00M	255.80M	121.30M
	EBITDA
768.90M	824.10M	851.20M	502.20M	565.50M	417.90M
	Net Income Common Stockholders
275.50M	194.50M	243.20M	37.80M	172.10M	68.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
286.20M	287.80M	280.90M	490.00M	300.20M	353.30M
	Total Assets
7.59B	7.69B	7.53B	7.80B	5.49B	4.62B
	Total Debt
2.77B	2.47B	2.45B	2.67B	1.72B	1.68B
	Net Debt
2.48B	2.18B	2.18B	2.18B	1.42B	1.33B
	Total Liabilities
4.61B	4.56B	4.44B	4.74B	3.17B	2.81B
	Stockholders Equity
2.99B	3.13B	3.10B	3.06B	2.33B	1.81B
Cash Flow		Free Cash Flow
405.20M	339.20M	264.40M	278.50M	285.00M	226.60M
	Operating Cash Flow
748.50M	649.20M	663.30M	578.20M	530.90M	425.80M
	Investing Cash Flow
-339.70M	-307.80M	-395.90M	-917.90M	-303.80M	-176.20M
	Financing Cash Flow
-325.20M	-320.20M	-476.50M	538.80M	-293.60M	-141.30M

SIG Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SIGN, the sentiment is Negative. The current price of 16.53 is below the 20-day moving average (MA) of 16.81, above the 50-day MA of 16.09, and below the 200-day MA of 17.35, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SIGN.

SIG Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGN	70 Outperform	$6.38B	34.45	6.31%	2.93%	1.05%	-21.04%
VETN	64 Neutral	CHF696.81M	101.74		2.90%	-6.31%	-78.36%
Sector *	57 Neutral	$4.90B	18.92	-17.01%	7.26%	13.61%	-24.47%

SIG Group AG Corporate Events

SIG Group AG Reports Strong Start to 2025 with Sustained Revenue Growth

SIG Group AG reported a solid start to 2025 with a currency-adjusted revenue growth of 3.8% in the first quarter, reflecting the strength of its business model amidst challenging market conditions. The company maintained an adjusted EBITDA margin of 22.3% and confirmed its full-year forecast, highlighting resilience against trade tariffs due to its regional supply chain strategy. Growth was particularly strong in the IMEA and Americas regions, driven by expanded presence and market share gains, while the Asia-Pacific region faced challenges due to a strong prior-year quarter and market conditions in China.

SIG Group AG Shareholders Approve Board Proposals and Dividend

At the 2025 general meeting, SIG Group AG shareholders approved all proposals from the Board of Directors, including the election of Ola Rollén as chairman. The meeting highlighted SIG’s robust growth and global platform, which have been advantageous during economic volatility. Additionally, a cash dividend of CHF 0.49 per share was approved, with distribution expected on April 15, 2025.

SIG Group AG Returns to Capital Markets with €625m Eurobond Issue

SIG Group AG has successfully issued a €625 million Eurobond with a 3.75% annual coupon, marking its return to the public capital markets. The bond, maturing in 2030, was heavily oversubscribed, reflecting investor confidence in SIG’s business model and growth strategy. The proceeds will be used for general corporate purposes and refinancing existing debt, supporting SIG’s strategy to diversify funding sources and manage debt maturity profiles.