SIG Group AG (SIGN) AI Stock Analysis

• Market Cap: $5.73B
• Dividend Yield: 3.27%
• Average Volume (3M): 913.39K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.84
• 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: 818,988
• 30 Day Avg. Volume: 913,394
• PEG Ratio: 5.86
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.82
• 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: $20.61
• Price Target Upside: 38.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: CHF15.50 ▲(3.96%Upside)

The overall stock score of 61 reflects a solid financial performance with consistent revenue growth and strong cash flow. However, technical analysis indicates bearish momentum with the stock trading below key moving averages and oversold conditions in RSI and Stochastic. The high P/E ratio suggests overvaluation, but the attractive dividend yield provides some compensation. The lack of recent earnings call data or significant corporate events means these factors do not influence the score.

Positive Factors

Financial Performance

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

Share Price Reaction

A positive share price reaction is expected due to the Q4 and FY24 EBITDA exceeding expectations by 8% and 2% respectively.

Negative Factors

Market Challenges

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

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 aseptic carton packaging, a method that ensures the long shelf life of products without the need for refrigeration. Operating globally, SIG Group offers a wide range of packaging formats, filling machines, and related services, catering primarily to manufacturers of dairy products, plant-based beverages, and liquid food.

How the Company Makes Money

SIG Group AG generates revenue primarily through the sale of its innovative packaging solutions and filling machines. The company's key revenue streams include the sale of aseptic carton packs, which are designed to maintain product freshness and safety over extended periods. Additionally, SIG Group earns from the installation and maintenance of filling machines that support these packaging solutions. The company also engages in long-term partnerships with food and beverage manufacturers, providing them with tailored packaging solutions and services. These collaborations often involve joint ventures and continuous supply agreements, which contribute significantly to its revenue. Furthermore, SIG Group benefits from technological innovations and sustainable packaging trends, positioning itself as a preferred partner for businesses looking to enhance their product offerings while reducing environmental impact.

SIG Group AG Financial Statement Overview

Summary

SIG Group AG demonstrates a strong financial position with consistent revenue growth and stable operational performance. Despite a slight decline in net profit margins and ROE, the company maintains a healthy balance sheet with a balanced equity ratio and strong cash flow generation. The leverage level is moderate and aligns with industry norms, indicating sound financial management.

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

SIG Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 14.91 is below the 20-day moving average (MA) of 14.96, below the 50-day MA of 15.92, and below the 200-day MA of 17.15, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 67.47 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	61 Neutral	$5.73B	30.84	6.31%	3.27%	1.05%	-21.04%
VETN	57 Neutral	CHF631.39M	92.19		3.14%	-6.31%	-78.36%
Sector *	57 Neutral	$5.81B	21.43	-28.61%	5.74%	10.78%	-34.04%

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.