SIG Group AG (SIGN) AI Stock Analysis

• Market Cap: CHF4.01B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.76
• Revenue Growth: 0.37%
• EPS Growth: -28.40%
• Country: CH
• Employees: 8,142
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.33
• Shares Outstanding: 382,270,870
• 10 Day Avg. Volume: 1,792,484
• 30 Day Avg. Volume: 2,636,554
• PEG Ratio: -1.84
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 21.43
• 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: CHF10.20
• Price Target Upside: -2.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: CHF10.00 ▼(-4.76% Downside)

SIG Group AG's overall stock score is driven by solid financial performance and short-term technical momentum. The company's consistent revenue growth and stable profitability margins are significant strengths. However, the stock's valuation is moderate, and technical indicators suggest potential overbought conditions, which could limit upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for SIG's packaging solutions, enhancing its market position and long-term business sustainability.

Sustainability Focus

A focus on sustainability aligns with global trends towards eco-friendly solutions, potentially increasing customer loyalty and market share.

Cash Generation

Strong cash generation supports operational flexibility and investment capacity, crucial for long-term growth and stability.

Negative Factors

Declining Free Cash Flow

Declining free cash flow may hinder the company's ability to invest in growth opportunities or manage unexpected expenses, affecting long-term liquidity.

Moderate Net Profit Margin

A modest net profit margin indicates potential inefficiencies in cost management or pricing, which could impact profitability and competitiveness.

Equity Returns

Moderate equity returns suggest room for improvement in capital efficiency, which could enhance shareholder value over time.

SIG Group AG Business Overview & Revenue Model

Company Description

SIG Group AG (SIGN) is a leading provider of packaging solutions for the food and beverage industry. The company specializes in the design and manufacturing of carton packaging, filling machines, and associated services, catering primarily to dairy, beverage, and food markets. With a focus on sustainability, innovation, and efficiency, SIG aims to offer high-quality, environmentally-friendly packaging solutions that meet the evolving needs of its global customers.

How the Company Makes Money

SIG Group AG generates revenue primarily through the sale of packaging solutions and filling machines to clients in the food and beverage sector. Their revenue model includes the direct sale of products as well as long-term contracts for ongoing services and maintenance. Key revenue streams consist of the sale of carton packs, filling equipment, and associated spare parts and services. Additionally, the company benefits from partnerships with major food and beverage brands, which drive consistent demand for its innovative packaging solutions. SIG's commitment to sustainability and the development of new technologies also plays a significant role in enhancing its competitive advantage and profitability.

SIG Group AG Financial Statement Overview

Summary

SIG Group AG exhibits solid financial performance with consistent revenue growth and stable profitability margins. The balance sheet reflects a prudent leverage strategy, though there is room for improvement in equity returns. Cash flow management shows strength in operating cash generation, but declining free cash flow growth warrants attention.

Income Statement

SIG Group AG has demonstrated consistent revenue growth, with a notable 8% increase in the TTM period. The company maintains a healthy gross profit margin of 24.6% and a stable EBIT margin of 12.1%. However, the net profit margin is relatively modest at 6.0%, indicating room for improvement in cost management or pricing strategies.

Balance Sheet

The company's debt-to-equity ratio of 0.96 indicates a balanced approach to leveraging, though slightly higher than the previous year. Return on equity is moderate at 6.8%, suggesting efficient use of equity but with potential for enhancement. The equity ratio stands at 38.3%, reflecting a stable capital structure.

Cash Flow

Operating cash flow to net income ratio is healthy at 0.41, indicating strong cash generation relative to net income. However, free cash flow growth has declined by 9.7% in the TTM period, which could signal challenges in maintaining liquidity or capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.33B	3.23B	2.78B	2.06B	1.82B
Gross Profit	820.50M	771.20M	761.40M	575.20M	484.60M	393.90M
EBITDA	752.20M	824.10M	851.20M	502.20M	565.50M	417.90M
Net Income	200.60M	194.50M	243.20M	37.80M	172.10M	68.00M
Balance Sheet
Total Assets	7.31B	7.69B	7.53B	7.80B	5.49B	4.62B
Cash, Cash Equivalents and Short-Term Investments	240.40M	287.80M	280.90M	490.00M	300.20M	353.30M
Total Debt	2.69B	2.47B	2.45B	2.67B	1.72B	1.68B
Total Liabilities	4.51B	4.56B	4.44B	4.74B	3.17B	2.81B
Stockholders Equity	2.80B	3.13B	3.10B	3.06B	2.33B	1.81B
Cash Flow
Free Cash Flow	279.20M	339.20M	264.40M	278.50M	285.00M	226.60M
Operating Cash Flow	559.10M	649.20M	663.30M	578.20M	530.90M	425.80M
Investing Cash Flow	-277.10M	-307.80M	-395.90M	-917.90M	-303.80M	-176.20M
Financing Cash Flow	-318.40M	-320.20M	-476.50M	538.80M	-293.60M	-141.30M

SIG Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SIGN, the sentiment is Positive. The current price of 10.5 is above the 20-day moving average (MA) of 9.73, above the 50-day MA of 9.04, and below the 200-day MA of 13.04, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 72.33 is Negative, neither overbought nor oversold. The STOCH value of 97.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	65 Neutral	CHF4.01B	21.22	6.72%	0.31%	0.37%	-28.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VETN	54 Neutral	CHF423.24M	46.00	―	4.68%	-6.46%	-58.18%

SIG Group AG Corporate Events

SIG Group AG Appoints Mikko Keto as New CEO

SIG Group AG has appointed Mikko Keto as its new Chief Executive Officer, effective in the first half of 2026. Keto, who previously served as Group CEO at FLSmidth, brings a wealth of experience in business transformation and operational efficiency. His appointment is expected to drive SIG’s growth and innovation, aiming to create a more agile company that enhances value for stakeholders.

SIG Group AG Announces Strategic Plan for Value Optimization

SIG Group AG has announced a strategic plan to optimize value creation through portfolio optimization, cost structure improvements, and disciplined capital allocation. Despite a challenging market environment, SIG aims to leverage its competitive advantages in aseptic packaging to expand into new markets and improve its medium-term margins by 150 basis points. The company forecasts modest sales growth for 2026 and plans to resume dividend payments in 2026, reflecting confidence in its future performance and financial stability.

SIG Group AG Faces Sales Decline Amid Market Challenges

SIG Group AG reported a decline in sales for the third quarter of 2025, with a currency-adjusted decrease of 3.9%, amid challenging market conditions and consumer sentiment. The company incurred significant one-time expenses totaling EUR 320 million, impacting its adjusted EBITDA margin, which fell to 16.0% in Q3. Despite these challenges, SIG confirmed its adjusted forecast for 2025, expecting a slightly negative to stagnant sales growth and an adjusted EBITDA margin of around 21% with one-time expenses. The company is focusing on strategic realignment and innovation to navigate the current market environment.

SIG Group AG Announces Strategic Shift and Dividend Suspension Amid Market Challenges

SIG Group AG announced a strategic shift to focus on high-margin aseptic packaging solutions, including divesting non-aseptic businesses and enhancing operational efficiency. This transformation aims to strengthen mid-term financial performance, but will incur significant one-time expenses. Due to challenging market conditions and this transformation, SIG forecasts stable to slightly negative revenue growth for 2025 and has suspended its cash dividend to prioritize debt reduction.