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SIG Group AG (CH:SIGN)
:SIGN

SIG Group AG (SIGN) AI Stock Analysis

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CH

SIG Group AG

(OTC:SIGN)

Rating:70Outperform
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 (SIGN) vs. iShares MSCI Switzerland ETF (EWL)

SIG Group AG Business Overview & Revenue Model

Company DescriptionSIG 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 MoneySIG 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
80
Positive
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
75
Positive
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
70
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.26B3.33B3.23B2.78B2.06B1.82B
Gross Profit
741.50M771.20M761.40M575.20M484.60M393.90M
EBIT
409.20M424.10M449.10M159.00M255.80M121.30M
EBITDA
768.90M824.10M851.20M502.20M565.50M417.90M
Net Income Common Stockholders
275.50M194.50M243.20M37.80M172.10M68.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
286.20M287.80M280.90M490.00M300.20M353.30M
Total Assets
7.59B7.69B7.53B7.80B5.49B4.62B
Total Debt
2.77B2.47B2.45B2.67B1.72B1.68B
Net Debt
2.48B2.18B2.18B2.18B1.42B1.33B
Total Liabilities
4.61B4.56B4.44B4.74B3.17B2.81B
Stockholders Equity
2.99B3.13B3.10B3.06B2.33B1.81B
Cash FlowFree Cash Flow
405.20M339.20M264.40M278.50M285.00M226.60M
Operating Cash Flow
748.50M649.20M663.30M578.20M530.90M425.80M
Investing Cash Flow
-339.70M-307.80M-395.90M-917.90M-303.80M-176.20M
Financing Cash Flow
-325.20M-320.20M-476.50M538.80M-293.60M-141.30M

SIG Group AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.53
Price Trends
50DMA
16.09
Positive
100DMA
17.27
Negative
200DMA
17.35
Negative
Market Momentum
MACD
0.08
Positive
RSI
48.55
Neutral
STOCH
30.20
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$6.38B34.456.31%2.93%1.05%-21.04%
64
Neutral
CHF696.81M101.74
2.90%-6.31%-78.36%
57
Neutral
$4.90B18.92-17.01%7.26%13.61%-24.47%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:SIGN
SIG Group AG
16.53
0.60
3.76%
CH:VETN
Vetropack Holding AG Class A
35.05
3.51
11.13%

SIG Group AG Corporate Events

SIG Group AG Reports Strong Start to 2025 with Sustained Revenue Growth
Apr 29, 2025

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
Apr 8, 2025

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
Mar 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.