Sika AG (SIKA) AI Stock Analysis

• Market Cap: CHF23.66B
• Dividend Yield: 2.23%
• Average Volume (3M): 413.87K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.16
• Revenue Growth: -1.05%
• EPS Growth: -1.46%
• Country: US
• Employees: 33,511
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.45
• Shares Outstanding: 160,479,300
• 10 Day Avg. Volume: 483,431
• 30 Day Avg. Volume: 413,868
• PEG Ratio: 2.09
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 25.02
• 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: CHF193.08
• Price Target Upside: 30.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: CHF166.00 ▲(12.09% Upside)

The score is driven primarily by strong financial performance (healthy margins, solid ROE, and manageable leverage). Valuation and earnings-call guidance are supportive, but the overall score is held back by weak technicals (price below major moving averages) and earnings-call risks around China demand, FX pressure, and lower cash generation.

Positive Factors

High margins & operating efficiency

Sika's persistently high gross and EBITDA margins indicate durable pricing power and efficient production processes across its specialty-chemicals portfolio. Strong margins provide structural resilience in cyclical construction markets and fund R&D, bolt-on M&A and margin improvement initiatives long term.

Healthy balance sheet and ROE

Moderate leverage combined with a robust 17.7% ROE reflects disciplined capital allocation and financial flexibility. This balance sheet strength supports continued bolt-on acquisitions, investment cycles and adverse market conditions without materially impairing strategic execution over the medium term.

Consistent cash generation

Positive free cash flow conversion and strong operating-cash-to-profit ratios show the business reliably converts earnings into cash. This sustainable cash generation underpins dividends, debt service and self-funded expansion, reducing reliance on external financing across business cycles.

Negative Factors

China / Asia Pacific weakness

Material weakness in China and APAC is a structural risk given Sika's geographic footprint. Prolonged deflationary or low-volume conditions in China could persistently depress regional revenues and margin leverage, making it harder to reach Strategy 2028 growth targets without offsetting gains elsewhere.

Significant FX headwinds

Large negative currency translation effects materially reduced reported growth and cash flow. Persistent FX volatility can structurally erode reported revenue and margin progress, complicate planning and weaken the predictability of earnings and free cash flow in multinational operations.

Decline in operating free cash flow

A sharp fall in operating free cash flow tied to higher working capital and investments raises durability concerns. If elevated working-capital needs from integration or rising capex persist, liquidity and self-funding capacity for acquisitions and returns could be constrained over the medium term.

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, 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 Money

Sika AG generates revenue primarily through the sale of its construction and industrial products, which are categorized into various segments including Concrete, Mortars, Waterproofing, Flooring, and Bonding & Sealing. The company benefits from a diversified revenue model that includes direct sales to contractors and builders, as well as partnerships with distributors and retailers across global markets. Sika's ability to innovate and develop new products tailored to the specific needs of industries, along with its strong presence in emerging markets, significantly contributes to its earnings. Additionally, strategic acquisitions and collaborations with key players in the construction and automotive sectors further enhance Sika's market reach and revenue potential.

Sika AG Financial Statement Overview

Summary

Strong profitability and operating efficiency (2024 gross margin 54.54%, EBIT margin 14.57%, EBITDA margin 19.60%) with positive revenue and free cash flow growth. Balance sheet is solid with manageable leverage (debt-to-equity 0.81) and strong ROE (17.71%).

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.60B	11.76B	11.24B	10.49B	9.25B	7.88B
Gross Profit	5.00B	6.42B	3.53B	3.08B	2.79B	2.42B
EBITDA	2.26B	2.30B	2.08B	1.94B	1.76B	1.48B
Net Income	1.22B	1.25B	1.06B	1.16B	1.05B	824.50M
Balance Sheet
Total Assets	15.39B	15.98B	15.05B	11.48B	10.90B	9.94B
Cash, Cash Equivalents and Short-Term Investments	520.40M	712.90M	648.20M	1.88B	1.18B	1.32B
Total Debt	6.22B	5.72B	5.84B	3.89B	3.66B	4.14B
Total Liabilities	9.21B	8.93B	9.12B	6.52B	6.50B	6.65B
Stockholders Equity	6.17B	7.03B	5.92B	4.97B	4.39B	3.29B
Cash Flow
Free Cash Flow	1.13B	1.38B	1.37B	833.80M	893.50M	1.24B
Operating Cash Flow	1.49B	1.74B	1.65B	1.10B	1.06B	1.37B
Investing Cash Flow	-638.30M	-580.70M	-3.52B	-175.40M	-469.40M	-332.00M
Financing Cash Flow	-862.30M	-1.08B	694.90M	-183.60M	-736.60M	-690.10M

Sika AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 148.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 148.1 is below the 20-day moving average (MA) of 154.65, below the 50-day MA of 156.23, and below the 200-day MA of 184.77, indicating a bearish trend. The MACD of -3.51 indicates Positive momentum. The RSI at 37.82 is Neutral, neither overbought nor oversold. The STOCH value of 24.45 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLN	73 Outperform	CHF43.32B	2.88	12.79%	2.03%	-19.77%	421.53%
SIKA	72 Outperform	CHF23.66B	19.34	―	2.23%	-1.05%	-1.46%
EMSN	66 Neutral	CHF14.15B	30.64	22.08%	3.16%	-4.25%	-0.03%
CLN	62 Neutral	CHF2.39B	21.11	5.38%	5.97%	-2.40%	38.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%