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Sika AG
(SIKA)
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Rating:72Outperform
Price Target:
CHF196.00
▲(25.76% Upside)
Action:Reiterated
Date:07/29/26
The score is primarily supported by strong underlying business quality—solid profitability and dependable free cash flow—alongside a positive price trend (trading above key moving averages). The rating is held back by a premium valuation (P/E ~27) and a cautious near-term outlook highlighted on the earnings call, including China demand weakness, FX pressure and recent profitability softness despite efficiency-program support.
Positive Factors
Consistent strong cash generation
Sika's sustained high free cash flow and near‑100% conversion of profit to cash create durable funding for capex, bolt‑on M&A, dividends and debt reduction. This reduces refinancing risk and supports strategic investments through cyclic construction cycles.
Negative Factors
Heavy China residential exposure
Significant exposure to a structurally weak China residential market materially dents organic growth and makes top‑line recovery contingent on a cyclical China rebound or faster share gains elsewhere, prolonging recovery and pressuring regional margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent strong cash generation
Sika's sustained high free cash flow and near‑100% conversion of profit to cash create durable funding for capex, bolt‑on M&A, dividends and debt reduction. This reduces refinancing risk and supports strategic investments through cyclic construction cycles.
Read all positive factors
Sika AG (SIKA) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF31.06B
Dividend Yield1.91%
Average Volume (3M)413.87K
Price to Earnings (P/E)29.8
Beta (1Y)1.39
Revenue Growth-4.22%
EPS Growth-14.86%
CountryCH
Employees33,856
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)6.50
Shares Outstanding160,479,300
10 Day Avg. Volume483,431
30 Day Avg. Volume413,868
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)3.92
Price to Sales (P/S)2.33
P/FCF Ratio20.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF202.45Price Target Upside29.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)7.46
Revenue Forecast (FY)CHF11.37B
Sika AG Business Overview & Revenue Model
Company Description
Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. It offers admixtures and additives f...
How the Company Makes Money
Sika makes money primarily by selling specialty chemical products and integrated application systems to professional customers, distributors, and industrial manufacturers. Revenue is largely generated from (1) construction-related sales: materials...
Sika AG Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 19, 2027
Earnings Call Sentiment Positive
Overall the call conveyed a constructive and improving operational picture: local-currency growth and margin expansion in H1, raised full-year growth guidance, successful delivery from the Fast Forward program and M&A synergies, and solid regional outperformance (notably EMEA and a rebound in Americas). These positives are tempered by meaningful FX translation headwinds, continued weakness and rebasing impacts in China construction, elevated transportation/supply-chain costs, and some H2 margin seasonality and geopolitical uncertainty. The net impression is that the company is executing well and gaining share despite macro and FX pressures.Positive Updates
Strong Local Currency Top-Line Momentum and Raised Guidance
Reported sales of CHF 5.59 billion in H1; despite a slight reported decline, local currency growth was 4% in H1 with clear quarter-on-quarter momentum and the full-year local currency growth guidance raised from 1%–4% to 3%–6% for FY2026.
Negative Updates
Adverse Foreign Exchange Impact
Significant negative FX translation drove reported revenue down in CHF — H1 FX headwind of about -5.5% (over CHF 300 million). Company expects a full-year FX headwind of approximately -3% to -4%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Local Currency Top-Line Momentum and Raised Guidance
Reported sales of CHF 5.59 billion in H1; despite a slight reported decline, local currency growth was 4% in H1 with clear quarter-on-quarter momentum and the full-year local currency growth guidance raised from 1%–4% to 3%–6% for FY2026.
Read all positive updates
Company Guidance
The company raised its full‑year local‑currency revenue guidance to 3–6% (from 1–4%), and reiterated an EBITDA margin target of 19.0–19.5% for 2026, while expecting a full‑year negative FX headwind of roughly 3–4% (H1 FX was −5.5%, >CHF300m); H1 results included CHF5.59bn reported sales, 4.0% L.C. growth (organic 2.9% ≈ +CHF250m, M&A +1.1%), a material margin of 55.7% (+60bps), EBITDA of CHF1.063bn (H1 EBITDA margin +10bps reported; +30bps ex‑FX), net profit CHF552m, EPS CHF3.43, and operating free cash flow CHF139.6m (company reiterates full‑year OCF target >10% of net sales). Management expects Fast Forward to deliver CHF80m savings in 2026 (run‑rate ≈80% at mid‑year), trailing 12‑month M&A synergies of CHF195m with a CHF200–220m 2026 target, a ~1.5pp H1 headwind from China construction (ex‑China construction organic growth ~4.4%), an initial ~10bp dilution from the latest acquisition with Akkim expected to close in Q3 (contribution in Q4), and seasonally slightly lower material margins in H2 but no further significant one‑time tax items expected.Sika AG Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.11B | 11.20B | 11.76B | 11.24B | 10.49B | 9.25B |
| Gross Profit | 4.81B | 6.15B | 6.42B | 3.53B | 3.08B | 2.79B |
| EBITDA | 4.36B | 2.03B | 2.30B | 2.08B | 1.94B | 1.76B |
| Net Income | 1.04B | 1.05B | 1.25B | 1.06B | 1.16B | 1.05B |
Balance Sheet | ||||||
| Total Assets | 16.02B | 15.36B | 15.98B | 15.05B | 11.48B | 10.90B |
| Cash, Cash Equivalents and Short-Term Investments | 625.30M | 807.60M | 712.90M | 648.20M | 1.88B | 1.18B |
| Total Debt | 6.05B | 5.52B | 5.72B | 5.84B | 3.89B | 3.66B |
| Total Liabilities | 9.20B | 8.70B | 8.93B | 9.12B | 6.52B | 6.50B |
| Stockholders Equity | 6.81B | 6.66B | 7.03B | 5.92B | 4.97B | 4.39B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 1.25B | 1.38B | 1.37B | 833.80M | 893.50M |
| Operating Cash Flow | 1.58B | 1.59B | 1.74B | 1.65B | 1.10B | 1.06B |
| Investing Cash Flow | -586.60M | -555.60M | -580.70M | -3.52B | -175.40M | -469.40M |
| Financing Cash Flow | -885.90M | -903.40M | -1.08B | 694.90M | -183.60M | -736.60M |
Sika AG Technical Analysis
Positive
155.85
Price Trends
166.21
Positive
153.56
Positive
152.15
Positive
Market Momentum
8.96
Negative
72.61
Negative
82.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SIKA, the sentiment is Positive. The current price of 155.85 is below the 20-day moving average (MA) of 174.20, below the 50-day MA of 166.21, and above the 200-day MA of 152.15, indicating a bullish trend. The MACD of 8.96 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 82.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SIKA.
Sika AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | CHF19.38B | 41.49 | 23.76% | 2.19% | -5.85% | 1.24% | |
72 Outperform | CHF31.06B | 29.78 | ― | 2.37% | -4.22% | -14.86% | |
61 Neutral | CHF38.33B | 67.55 | 86.11% | 2.30% | -26.49% | -87.22% | |
58 Neutral | CHF3.28B | -99.60 | -3.81% | 5.65% | -6.64% | -127.26% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:SIKA
Sika AG
193.55
9.31
5.05%
CH:HOLN
Holcim
71.60
5.29
7.99%
CH:CLN
Clariant AG
10.04
2.40
31.45%
CH:EMSN
EMS-CHEMIE HOLDING AG
803.50
194.34
31.90%
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.