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Sika AG (CH:SIKA)
:SIKA
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Sika AG
(SIKA)
Rating:69Neutral
Price Target:
CHF218.00
▲(9.58%Upside)
Positive Factors
Analyst Ratings
A Buy rating is initiated for Sika, indicating confidence in the company's potential.
Market Position
Sika is recognized as the global leader in Construction Chemicals.
Product Offering
The one-stop-shop offering is considered a key benefit of using Sika, facilitating cross-selling opportunities.
Negative Factors
Currency Effects
The group delivered a solid set of Q1-25 sales beating organically, but being held back by FX and scope effects.
Market Performance
The group's construction markets outperformed its industrial/automotive markets with +1.3% growth vs a decline of -1.0%.
Sika AG (SIKA) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF31.92B
Dividend Yield1.83%
Average Volume (3M)359.90K
Price to Earnings (P/E)26.1
Beta (1Y)1.20
Revenue Growth-1.05%
EPS GrowthN/A
CountryCH
Employees33,511
SectorIndustrials
Sector Strength93
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.45
Shares Outstanding160,479,300
10 Day Avg. Volume343,472
30 Day Avg. Volume359,904
Financial Highlights & Ratios
PEG Ratio101.91
Price to Book (P/B)4.66
Price to Sales (P/S)0.00
P/FCF Ratio24.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF241.40Price Target Upside21.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Sika AG Business Overview & Revenue Model
Company DescriptionSika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and automotive industry worldwide. It offers tile adhesives and grouts, and systems for under-tile waterproofing and sound reduction, as well as renders and decorative finishes for exterior and interior walls; and develops and markets various admixtures and additives for use in concrete, cement, and mortar production, as well as flat roofing systems. The company also provides a range of technologies used for below and aboveground waterproofing, including flexible membrane systems, liquid applied membranes, joint waterproofing systems, waterproofing mortars and mortar admixtures, and injection resins and grouts for use in various markets, such as commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. Further, it offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, tapes, spray foams, and elastic adhesives for the building envelope, interior finishing, and infrastructure construction applications. In addition, the company provides repair, strengthening, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, and corrosion control and structural strengthening systems. It serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.
How the Company Makes MoneySika AG generates revenue primarily through the sale of its wide range of specialty chemical products and systems. The company's key revenue streams include its various segments: sealants and adhesives, concrete and waterproofing, roofing systems, flooring solutions, and refurbishment products. These products are sold to a diverse customer base including construction companies, industrial manufacturers, and distributors. Sika's revenue model is bolstered by its global presence, strong brand reputation, and continuous innovation in product development. Strategic partnerships and acquisitions also play a significant role in expanding its market reach and enhancing its product portfolio, contributing to its overall earnings.
Sika AG Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -18.49%|
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong EBITDA margin improvement and successful synergy realization, despite challenging conditions in China and significant foreign exchange impacts. Growth in certain regions and successful acquisitions were positive, but market uncertainties in the U.S. and cash flow challenges were notable concerns.Q2-2025 Updates
Positive Updates
EBITDA Margin Improvement
EBITDA margin expanded by 20 basis points to 18.9%, despite challenging market conditions and foreign exchange impacts.
Successful Synergy Realization
MBCC synergy targets increased by CHF 20 million for the ongoing year and next year, with realized synergies amounting to CHF 79 million in the first half of 2025.
Bolt-On Acquisitions
Completed 4 bolt-on acquisitions in roofing, building finishing, and expansion in Qatar, indicating potential for market consolidation.
Strong Performance in Certain Regions
Double-digit growth in the Middle East and Africa, and robust performance in Latin America, with significant contributions from Brazil, Colombia, and Argentina.
Resilient EMEA Performance
Region EMEA demonstrated a consistent improvement with a 1.9% growth in constant currencies, showing signs of recovery in Eastern Europe.
Negative Updates
Negative Impact of Foreign Exchange
Foreign exchange movements reduced local currency growth by 4.3 percentage points, with a more than 7% impact in Q2 alone.
Challenges in China
Sales in Asia Pacific declined by 4.7% due to a challenging deflationary market environment in China, impacting growth negatively by 2.1%.
US Market Uncertainty
Mixed signals in U.S. trade policy slowed market momentum, especially impacting growth in the U.S. and Mexico.
Lower Operating Free Cash Flow
Operating free cash flow decreased significantly from CHF 401 million in H1 2024 to CHF 181.9 million, due to higher taxes, increased working capital, and unfavorable currency movements.
Company Guidance
During the Sika Half Year 2025 Results Conference Call, the company provided guidance for the remainder of the fiscal year. Sika expects modest sales growth in local currency for the full year, despite facing challenging market conditions. The company has demonstrated resilience, with a 0.6% local currency growth in a declining market, and has maintained a high material margin of 55.1%. The EBITDA margin expanded to 18.9%, and the company increased its MBCC synergy targets by CHF 20 million for the ongoing year and next year. Sika also completed four bolt-on acquisitions, contributing 1.0 percentage point to growth. Looking ahead, Sika remains committed to its Strategy '28 for sustainable and profitable growth, targeting an EBITDA margin of 19.5% to 19.8% for the year. The company is optimistic about the second half, with expectations of better market conditions and continued operational efficiencies.Sika AG Financial Statement Overview
Summary
Sika AG shows robust financial health with strong revenue growth, healthy profit margins, and efficient cash flow management. The company's financial statements reflect a well-managed financial position suitable for sustained growth, with high scores across income, balance sheet, and cash flow performance.Income Statement
Sika AG has demonstrated strong revenue growth, with a 4.67% increase from 2023 to 2024. The company maintains healthy margins with a gross profit margin of 54.54% and a net profit margin of 10.59% in 2024. The EBIT margin is strong at 14.57%, and EBITDA margin stands at 19.60%, indicating solid operational efficiency. Consistent profit growth and stable margins contribute to the high score.85
Very Positive
Balance Sheet
The company exhibits a moderate debt-to-equity ratio of 0.81, showing balanced leverage. The return on equity is robust at 17.71%, reflecting effective use of equity to generate profits. Equity ratio is reasonable at 44.02%, suggesting a healthy balance between liabilities and equity. The balance sheet shows financial stability with manageable debt levels and strong equity performance.75
Positive
Cash Flow
Sika AG's cash flow performance is strong, with a free cash flow growth rate of 1.34% from 2023 to 2024. The operating cash flow to net income ratio is 1.40, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is 1.11, demonstrating adequate free cash flow relative to profit. The cash flow statement reflects solid financial health with good cash management.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.76B | 11.24B | 10.49B | 9.25B | 7.88B |
| Gross Profit | 6.42B | 3.53B | 3.08B | 2.79B | 2.42B |
| EBITDA | 2.30B | 2.08B | 2.00B | 1.79B | 1.55B |
| Net Income | 1.25B | 1.06B | 1.16B | 1.05B | 824.50M |
Balance Sheet | |||||
| Total Assets | 15.98B | 15.05B | 11.48B | 10.90B | 9.94B |
| Cash, Cash Equivalents and Short-Term Investments | 712.90M | 648.20M | 1.88B | 1.18B | 1.32B |
| Total Debt | 5.72B | 5.84B | 3.89B | 3.66B | 4.14B |
| Total Liabilities | 8.93B | 9.12B | 6.52B | 6.50B | 6.65B |
| Stockholders Equity | 7.03B | 5.92B | 4.97B | 4.39B | 3.29B |
Cash Flow | |||||
| Free Cash Flow | 1.38B | 1.37B | 833.80M | 893.50M | 1.24B |
| Operating Cash Flow | 1.74B | 1.65B | 1.10B | 1.06B | 1.37B |
| Investing Cash Flow | -580.70M | -3.52B | -175.40M | -469.40M | -332.00M |
| Financing Cash Flow | -1.08B | 694.90M | -183.60M | -736.60M | -690.10M |
Sika AG Technical Analysis
Negative
198.95
Price Trends
212.44
Negative
212.04
Negative
220.22
Negative
Market Momentum
-2.99
Positive
36.13
Neutral
27.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SIKA, the sentiment is Negative. The current price of 198.95 is below the 20-day moving average (MA) of 204.95, below the 50-day MA of 212.44, and below the 200-day MA of 220.22, indicating a bearish trend. The MACD of -2.99 indicates Positive momentum. The RSI at 36.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SIKA.
Sika AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | CHF4.12B | 18.19 | 2.73% | -11.73% | -35.55% | ||
69 Neutral | CHF31.92B | 26.09 | 1.83% | -1.05% | ― | ||
65 Neutral | €4.16B | 8.93 | 18.29% | 4.16% | 3.76% | -98.87% | |
52 Neutral | CHF5.17B | 18.65 | 2.13% | -24.42% | 32.48% | ||
| ― | $3.48B | 12.73 | 11.11% | 0.43% | ― | ― | |
| ― | $19.07B | 36.61 | 25.54% | <0.01% | ― | ― | |
| ― | $6.43B | 20.87 | 23.37% | 2.65% | ― | ― |
* Industrials Sector Average
Performance Comparison
CH:SIKA
Sika AG
198.95
-63.62
-24.23%
CH:BUCN
Bucher Industries AG
386.50
41.95
12.18%
CH:GF
Georg Fischer AG
65.55
2.36
3.73%
CLZNF
Clariant AG
10.59
-3.95
-27.17%
EMSHF
EMS-CHEMIE HOLDING AG
808.88
-19.52
-2.36%
SULZF
Sulzer AG
192.08
47.87
33.19%
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.