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Sulzer AG (CH:SUN)
:SUN
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Sulzer AG
(OTC:SUN)
71Outperform
Positive Factors
Financial Performance
Sulzer just released FY24 results, in line with upgraded guidance and ahead of consensus on sales, OpEBIT, and orders.
Services Growth
Sales in Services were up 10% year over year, benefiting from solid demand across all end-markets with an unchanged strong margin of 15.7%.
Negative Factors
Chemtech Orders
Orders in Chemtech are down 17% year over year to CHF230m against tough comparisons.
Order Performance
1Q25 orders came in softer, flat year over year to CHF1,020m, primarily driven by a larger Chemtech order shifting into the next quarter and high uncertainty in Oil & Gas verticals in the US.
Sulzer AG (SUN) vs. S&P 500 (SPY)
Market Cap
CHF4.87B
Dividend Yield2.79%
Average Volume (3M)60.41K
Price to Earnings (P/E)18.6
Beta (1Y)1.14
Revenue Growth7.58%
EPS Growth14.41%
CountryCH
Employees13,455
SectorIndustrials
Sector Strength82
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)7.74
Shares Outstanding34,262,367
10 Day Avg. Volume35,160
30 Day Avg. Volume60,410
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF185.00Price Target Upside26.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Sulzer AG Business Overview & Revenue Model
Company DescriptionSulzer AG (SUN) is a global leader in fluid engineering, specializing in the development and manufacturing of pumping solutions, services for rotating equipment, and separation, mixing, and application technologies. The company serves a diverse range of industries, including oil and gas, power, water, and general industry, providing innovative and sustainable solutions tailored to meet the specific needs of their clients.
How the Company Makes MoneySulzer AG generates revenue primarily through the sale of its highly engineered products and the provision of aftermarket services. The company's key revenue streams include the sale of pumps, agitators, and mixers, as well as the provision of maintenance and repair services for rotating equipment. Additionally, Sulzer benefits from long-term service agreements and contracts with major industrial players, ensuring a stable income stream. The company's focus on innovation and sustainability, along with strategic partnerships and acquisitions, further strengthens its market position and contributes to its earnings.
Sulzer AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.28B | 3.18B | 3.16B | 2.97B | 3.73B | Gross Profit |
| 1.08B | 939.60M | 946.90M | 872.50M | 1.12B | EBIT |
| 329.70M | 153.30M | 203.60M | 162.40M | 252.50M | EBITDA |
| 440.00M | 250.10M | 334.80M | 261.20M | 403.20M | Net Income Common Stockholders |
| 229.10M | 28.60M | 1.42B | 83.60M | 154.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 977.00M | 1.21B | 1.53B | 1.43B | 1.09B | Total Assets |
| 4.37B | 4.70B | 5.08B | 5.43B | 5.16B | Total Debt |
| 1.15B | 1.44B | 1.60B | 1.84B | 1.44B | Net Debt |
| 174.50M | 248.60M | 93.50M | 719.60M | 404.40M | Total Liabilities |
| 3.27B | 3.67B | 3.80B | 4.01B | 3.57B | Stockholders Equity |
| 1.10B | 1.02B | 1.27B | 1.40B | 1.58B |
| Cash Flow | Free Cash Flow | |||
| 296.60M | 49.50M | 230.30M | 263.20M | 204.80M | Operating Cash Flow |
| 362.20M | 119.30M | 316.40M | 368.70M | 319.70M | Investing Cash Flow |
| -104.80M | -87.00M | 414.50M | -461.80M | -242.70M | Financing Cash Flow |
| -448.60M | -286.30M | -365.20M | 236.50M | -123.20M |
Sulzer AG Technical Analysis
Positive
145.80
Price Trends
144.15
Positive
139.88
Positive
133.74
Positive
Market Momentum
1.19
Negative
59.67
Neutral
81.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SUN, the sentiment is Positive. The current price of 145.8 is above the 20-day moving average (MA) of 135.08, above the 50-day MA of 144.15, and above the 200-day MA of 133.74, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SUN.
Sulzer AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | CHF1.24B | 18.79 | 5.25% | -11.92% | 100.79% | ||
71 Outperform | CHF4.87B | 18.64 | 22.45% | 2.79% | 7.58% | 14.41% | |
70 Outperform | CHF1.74B | 22.69 | 2.65% | 10.38% | 18.74% | ||
70 Neutral | CHF3.91B | 17.26 | 2.86% | -11.73% | -35.55% | ||
64 Neutral | $4.30B | 11.84 | 5.23% | 249.82% | 4.06% | -10.21% | |
61 Neutral | CHF1.55B | 24.81 | 1.72% | -5.25% | -6.32% | ||
54 Neutral | CHF4.97B | 22.98 | 2.23% | -3.33% | -8.90% |
* Industrials Sector Average
Performance Comparison
CH:SUN
Sulzer AG
145.80
29.49
25.36%
CH:OERL
OC Oerlikon Corporation AG
3.81
-0.76
-16.63%
CH:KARN
Kardex AG
229.00
-7.86
-3.32%
CH:INRN
Interroll Holding AG
1,900.00
-1,010.00
-34.71%
CH:BUCN
Bucher Industries AG
382.50
16.66
4.55%
CH:GF
Georg Fischer AG
62.65
-3.52
-5.32%
Sulzer AG Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q4-2024)
| % Change Since: 9.80%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a generally positive outlook with strong financial results, double-digit growth in sales and order intake, and improved profitability. However, challenges in the Chinese market and lower than anticipated free cash flow were noted as areas of concern.Q4-2024 Updates
Positive Updates
Double-Digit Growth in Sales and Order Intake
Sulzer reported double-digit growth in both sales and order intake for 2024, with CHF 3.5 billion in sales, a significant increase from the previous year.
Strong Profitability Improvements
The company saw a strong improvement in profitability with an EBITDA of CHF 436 million, and a return on capital employed reaching 19.7% for 2024.
Significant Increase in Dividend
Sulzer proposed a substantial increase in dividend payments from CHF 3.75 per share to CHF 4.25 per share, reflecting the company's solid financial performance.
Order Intake Margin Growth
Order intake margin increased by 110 basis points in 2024, indicating a strong market position.
Strong Performance in Services and Flow Divisions
The Services division grew by 12.5% in order intake, while the Flow division saw a 14.7% increase in the Energy segment and 10.6% in the Water and Industry segment.
Negative Updates
Challenges in the Chinese Market
Chemtech's growth was slower at 5.4% due to a 20-25% market decline in China, although this was partially mitigated by expansion in the Americas and the Middle East.
Free Cash Flow Below Expectations
Free cash flow was CHF 235 million, lower than expected due to increased CapEx and higher tax payments.
High Net Working Capital
Net working capital was high due to a significant increase in backlog from CHF 1.9 billion to CHF 2.3 billion.
FX Impact on Financials
A negative FX impact of 3% affected order intake and sales, though less than the 8% impact in 2023.
Company Guidance
In the recent earnings call, Sulzer presented its 2024 financial results, showcasing a robust double-digit growth in both sales and order intake. The company achieved CHF 3.5 billion in sales, reflecting significant growth over the previous year, despite a 3% negative impact from the Swiss franc's appreciation. EBITDA improved to CHF 436 million, marking a substantial enhancement in profitability. Sulzer's return on capital employed increased by 200 basis points to 19.7%, indicating a positive trend in operational efficiency. The company's backlog rose to CHF 2.3 billion, demonstrating strong demand. In terms of regional performance, the Americas and Asia Pacific exhibited strong growth, with services in the U.S. and APAC regions showing continued expansion. Sulzer's strategic focus on essential industries such as energy, water, and chemicals, coupled with operational excellence initiatives, has positioned the company for sustained growth. The company plans to propose a dividend increase from CHF 3.75 to CHF 4.25 per share, reflecting its solid financial standing. Looking ahead to 2025, Sulzer anticipates sales growth between 5% and 8%, with an EBITDA margin projected above 15%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.