Sika AG (CH:SIKA)
:SIKA
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Sika AG
(SIKA)
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Rating:69Neutral
Price Target:
CHF144.00
▲(9.59% Upside)
Action:DowngradedDate:02/28/26
The score is primarily driven by solid underlying financial quality (healthy margins and consistent free cash flow), offset by the 2025 growth/profit slowdown and moderate leverage. Technicals are only mildly constructive due to price remaining below the 200-day average, while valuation is fair-to-slightly expensive for the current growth profile. Earnings call guidance is cautiously supportive, but near-term macro/China and FX risks keep the overall rating in the upper-middle range.
Positive Factors
Cash generation & conversion
Sika’s sustained high free cash flow (CHF 1.36bn; 12.1% of sales) and near‑100% conversion of profit to cash create durable funding for capex, dividends, bolt‑on M&A and Fast Forward investments. Reliable cash conversion supports strategic flexibility and shareholder returns over the medium term.
Negative Factors
China residential downturn
A severe multi‑year China residential slump (≈45% consumption drop) and an ~18% Sika China construction revenue decline are material structural headwinds. Given China’s size for global construction inputs, prolonged weakness reduces group organic growth, utilization and local margin leverage for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & conversion
Sika’s sustained high free cash flow (CHF 1.36bn; 12.1% of sales) and near‑100% conversion of profit to cash create durable funding for capex, dividends, bolt‑on M&A and Fast Forward investments. Reliable cash conversion supports strategic flexibility and shareholder returns over the medium term.
Read all positive factors
Sika AG (SIKA) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF21.08B
Dividend Yield2.23%
Average Volume (3M)413.87K
Price to Earnings (P/E)25.0
Beta (1Y)1.20
Revenue Growth-1.05%
EPS Growth-1.46%
CountryCH
Employees33,511
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.06
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
CHF180.36Price Target Upside37.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.36
Revenue Forecast (FY)CHF11.11B
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 automotive industry worldwide. It offers tile adhesives and grouts, an...
How the Company Makes Money
Sika makes money primarily by manufacturing and selling specialty chemical products and systems used in construction and industrial applications. Revenue is generated through (1) direct product sales to construction-related customers such as contr...
Sika AG Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
Balanced. The call highlighted clear operational strengths—market outperformance in local currency, material margin expansion, very strong cash generation, successful M&A integration and substantial R&D/innovation investment—while equally acknowledging meaningful near-term headwinds: a sharp China residential downturn, negative FX translation that reduced reported sales, Fast Forward one-time charges and temporary margin pressure. Management presented a constructive but cautious outlook (FY2026 guidance: local-currency growth 1–4% and an EBITDA margin target around ~19–20%), driven by confidence in efficiency programs, bolt-on M&A and data-center and infrastructure opportunities, but with recognition of continued short-term uncertainty and the need to convert planned efficiency/synergy benefits.Positive Updates
Outperformance vs Market and Regional Growth
Sika grew sales to CHF 11.2bn with 0.6% growth in local currency in FY2025, outperforming a market decline of ~2.5%. EMEA and Americas each delivered ~2.2% local currency growth, demonstrating pockets of momentum (Middle East, Africa, Central Asia, data centers, Latin America).
Negative Updates
Significant China Residential Downturn
China construction market saw an ~45% reduction in residential consumption over two years and Sika's China construction business declined ~18% in 2025, materially weighing on group organic growth and reported results.
Read all updates
Q4-2025 Updates
Positive
Negative
Outperformance vs Market and Regional Growth
Sika grew sales to CHF 11.2bn with 0.6% growth in local currency in FY2025, outperforming a market decline of ~2.5%. EMEA and Americas each delivered ~2.2% local currency growth, demonstrating pockets of momentum (Middle East, Africa, Central Asia, data centers, Latin America).
Read all positive updates
Company Guidance
Management guided 2026 to local‑currency sales growth of 1–4% (with a strategic aim to outperform the market by 3–6%), and an EBITDA margin target of about 19.5–20%; they expect Fast Forward to deliver roughly CHF 80m of benefits in 2026 (after CHF 86m of Fast Forward one‑offs in 2025), plan CHF 120–150m of related investments over the next three years and foresee total Fast‑Forward/digital benefits of CHF 150–200m by 2028, with ~CHF 80m materializing already in 2026. Management assumes roughly a 1.5% M&A contribution for 2026 (some larger bolt‑ons closing later), implying an organic growth range of about −2% to +1% if acquisitions sit at the top of the guidance; they reconfirm progressive capital allocation (proposed dividend CHF 3.70/share, +2.8%), continued bolt‑on M&A and a drive to hit midterm outperformance, anchored to 2025s baseline of CHF 11.2bn sales, +0.6% LCC growth, material margin 54.9% (+50bps), EBITDA CHF 2.065bn (18.4%; 19.2% excl. Fast Forward) and operating free cash flow CHF 1.36bn (12.1%).Sika AG Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.20B | 11.76B | 11.24B | 10.49B | 9.25B |
| Gross Profit | 6.15B | 6.42B | 3.53B | 3.08B | 2.79B |
| EBITDA | 1.49B | 2.30B | 2.08B | 1.94B | 1.76B |
| Net Income | 1.05B | 1.25B | 1.06B | 1.16B | 1.05B |
Balance Sheet | |||||
| Total Assets | 15.36B | 15.98B | 15.05B | 11.48B | 10.90B |
| Cash, Cash Equivalents and Short-Term Investments | 807.60M | 712.90M | 648.20M | 1.88B | 1.18B |
| Total Debt | 5.84B | 5.72B | 5.84B | 3.89B | 3.66B |
| Total Liabilities | 8.70B | 8.93B | 9.12B | 6.52B | 6.50B |
| Stockholders Equity | 6.66B | 7.03B | 5.92B | 4.97B | 4.39B |
Cash Flow | |||||
| Free Cash Flow | 1.25B | 1.38B | 1.37B | 833.80M | 893.50M |
| Operating Cash Flow | 1.59B | 1.74B | 1.65B | 1.10B | 1.06B |
| Investing Cash Flow | -555.60M | -580.70M | -3.52B | -175.40M | -469.40M |
| Financing Cash Flow | -903.40M | -1.08B | 694.90M | -183.60M | -736.60M |
Sika AG Technical Analysis
Neutral
131.40
Price Trends
141.83
Negative
147.10
Negative
165.22
Negative
Market Momentum
-3.74
Negative
43.43
Neutral
72.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SIKA, the sentiment is Neutral. The current price of 131.4 is above the 20-day moving average (MA) of 130.58, below the 50-day MA of 141.83, and below the 200-day MA of 165.22, indicating a neutral trend. The MACD of -3.74 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | CHF14.82B | 27.52 | 22.08% | 3.16% | -4.25% | -0.03% | |
69 Neutral | CHF21.08B | 24.98 | ― | 2.23% | -1.05% | -1.46% | |
65 Neutral | CHF36.21B | -20.68 | 12.79% | 2.03% | -19.77% | 421.53% | |
56 Neutral | CHF2.57B | -31.13 | 5.38% | 5.97% | -2.40% | 38.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:SIKA
Sika AG
131.40
-59.16
-31.05%
CH:HOLN
Holcim
67.20
25.05
59.42%
CH:CLN
Clariant AG
7.80
-0.15
-1.86%
CH:EMSN
EMS-CHEMIE HOLDING AG
633.50
78.45
14.13%
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.