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Sulzer AG (CH:SUN)
:SUN
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Sulzer AG
(OTC:SUN)
Rating:78Outperform
Price Target:
CHF175.00
▲(12.61% Upside)
Positive Factors
Earnings
Sales are up with earnings continuing to improve due to operational improvements and higher service share.
Order Backlog
The backlog increased to CHF2.5bn (+9% QoQ) and bodes well to achieve this year's guidance, which was confirmed, implying +5% order growth for the remainder of the year to meet the mid-point.
Negative Factors
Chemtech Orders
Orders in Chemtech are down -17% YoY to CHF230m against tough comps.
Order Momentum
Order momentum reflects current capital expenditure hesitance across energy verticals.
Sulzer AG (SUN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF5.25B
Dividend Yield2.71%
Average Volume (3M)49.93K
Price to Earnings (P/E)19.2
Beta (1Y)1.16
Revenue Growth5.79%
EPS Growth13.20%
CountryCH
Employees13,455
SectorIndustrials
Sector Strength78
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.74
Shares Outstanding34,262,367
10 Day Avg. Volume34,088
30 Day Avg. Volume49,934
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)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
CHF181.84Price Target Upside17.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Sulzer AG Business Overview & Revenue Model
Company DescriptionSulzer AG (SUN) is a global industrial engineering and manufacturing company headquartered in Winterthur, Switzerland. The company operates primarily in two sectors: Sulzer Pumps, which focuses on the design and production of pumps and related services for various industries including oil and gas, water and wastewater, and chemicals; and Sulzer Chemtech, which provides separation and mixing technology for processes in the chemical and petrochemical sectors. Sulzer also has a strong presence in the surface solutions market, offering coating services and technologies to enhance the performance and durability of industrial components.
How the Company Makes MoneySulzer AG generates revenue through multiple streams, primarily from the sale of its engineered products, including pumps, mixers, and separation technologies. The company earns money by providing customized solutions and services to its clients, often including installation, maintenance, and after-sales support. Key revenue streams include the provision of equipment and systems for various applications in the oil & gas, water, and chemical industries, as well as long-term service agreements. Significant partnerships with major players in these industries enhance its market reach and stability of earnings. Additionally, Sulzer's focus on innovation and technology development allows it to introduce advanced solutions, further driving revenue growth.
Sulzer AG Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: 4.16%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
Sulzer showed strong sales growth and profitability improvements, supported by successful innovations and a positive order backlog. However, challenges in the Chemtech division, currency impacts, and cash flow issues balanced the positive aspects.Q2-2025 Updates
Positive Updates
Strong Sales Growth
Sulzer experienced a strong sales increase of 6.3% in the first half of the year, with the Flow division growing by 10.3% and the Services division by almost 15%.
Profitability Improvement
Sulzer's profitability improved for the third consecutive year. The EBITDA margin increased by 90 basis points compared to last year, and the return on capital employed rose by 270 basis points.
Service Division Success
The Service division achieved double-digit sales growth for the third consecutive year, with order intake growing by 12%.
Innovation Success
Sulzer reported several successful innovations, including biopolymer orders, sustainable aviation fuels, and carbon capture projects, indicating strong future potential.
Positive Order Backlog Development
Despite currency impacts, the order backlog grew by 5% compared to H1 last year.
Negative Updates
Chemtech Division Challenges
The Chemtech division faced a sales decline of 13.6% due to geopolitical uncertainties and overcapacity in Asia, particularly in China, affecting the refinery and petrochemical sectors.
Impact of Currency Fluctuations
The Swiss franc increased by 15% against the U.S. dollar since January 2025, negatively impacting sales and order intake by approximately 4%, equating to around CHF 70 million.
Order Intake Decline in Flow Division
While the Flow division experienced sales growth, the order intake declined by 3.1% due to the absence of a large USD 100 million order from the previous year.
Cash Flow Challenges
Free cash flow was CHF 12 million lower compared to H1 last year, mainly due to increased inventory and accounts receivable resulting from project delays.
Company Guidance
During Sulzer's Half Year 2025 Results Presentation, the company reaffirmed its midterm financial goals, targeting an EBITDA margin above 17% and a return on capital employed over 22%. Despite geopolitical uncertainties and currency fluctuations, Sulzer experienced a 6.3% increase in sales, with notable double-digit growth in the Flow (10.3%) and Services (14.8%) divisions, though Chemtech saw a 13.6% decline. The order intake for Services rose by 12%, although Flow's intake decreased by 3.1%, impacted by a major order from the previous year. Sulzer's EBITDA margin improved by 90 basis points year-over-year, with ongoing cost optimization efforts contributing to this progress. The company maintains a positive outlook for the second half of 2025, with anticipated order intake growth between 2% and 5%, sales growth of 5% to 8%, and an EBITDA margin above 15%.Sulzer AG Financial Statement Overview
Summary
Sulzer AG shows strong financial performance with consistent revenue and profit growth, stable margins, and effective cash flow management. The balance sheet is healthy with manageable debt levels, though monitoring leverage is advised.Income Statement
Sulzer AG has shown consistent revenue growth with a Revenue Growth Rate of 7.6% from 2023 to 2024. Its Gross Profit Margin is solid at 33.5% and Net Profit Margin at 7.4% in 2024, indicating strong profitability. The EBIT Margin of 10.8% and EBITDA Margin of 14.2% also highlight efficient operations. The company's income statement reflects a healthy growth trajectory and profitability, although there was a dip in net income in 2021 due to one-off factors.85
Very Positive
Balance Sheet
The company's Debt-to-Equity Ratio is 0.95 in 2024, which is reasonable for the industry, showing balanced leverage. The Return on Equity (ROE) is strong at 21.4%, indicating efficient use of equity to generate profits. The Equity Ratio is 25.9%, suggesting a moderate reliance on equity financing. Overall, the balance sheet is stable, but the company should monitor its debt levels to maintain financial flexibility.78
Positive
Cash Flow
Sulzer AG's Free Cash Flow increased by 4.4% from 2023 to 2024, supporting growth and investment. The Operating Cash Flow to Net Income Ratio is 1.24, indicating strong cash conversion from profits. The Free Cash Flow to Net Income Ratio is 0.88, showing a solid capacity to fund operations and growth initiatives. Cash flow management is robust, supporting business sustainability.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.53B | 3.28B | 3.18B | 3.16B | 2.97B |
| Gross Profit | 1.18B | 1.08B | 939.60M | 946.90M | 872.50M |
| EBITDA | 503.00M | 440.00M | 250.10M | 334.80M | 261.20M |
| Net Income | 261.90M | 229.10M | 28.60M | 1.42B | 83.60M |
Balance Sheet | |||||
| Total Assets | 4.71B | 4.37B | 4.70B | 5.08B | 5.43B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 977.00M | 1.21B | 1.53B | 1.43B |
| Total Debt | 1.16B | 1.15B | 1.44B | 1.60B | 1.84B |
| Total Liabilities | 3.48B | 3.27B | 3.67B | 3.80B | 4.01B |
| Stockholders Equity | 1.22B | 1.10B | 1.02B | 1.27B | 1.40B |
Cash Flow | |||||
| Free Cash Flow | 231.40M | 296.60M | 49.50M | 230.30M | 263.20M |
| Operating Cash Flow | 323.80M | 362.20M | 119.30M | 316.40M | 368.70M |
| Investing Cash Flow | -98.20M | -104.80M | -87.00M | 414.50M | -461.80M |
| Financing Cash Flow | -151.60M | -448.60M | -286.30M | -365.20M | 236.50M |
Sulzer AG Technical Analysis
Neutral
155.40
Price Trends
150.24
Positive
147.17
Positive
141.94
Positive
Market Momentum
2.10
Positive
50.45
Neutral
46.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SUN, the sentiment is Neutral. The current price of 155.4 is above the 20-day moving average (MA) of 154.85, above the 50-day MA of 150.24, and above the 200-day MA of 141.94, indicating a neutral trend. The MACD of 2.10 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 46.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SUN.
Sulzer AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF5.25B | 19.25 | 23.37% | 2.71% | 5.79% | 13.20% | |
75 Outperform | CHF4.05B | 17.94 | 2.78% | -11.64% | -24.17% | ||
70 Outperform | CHF2.51B | 33.86 | 1.84% | 11.43% | 6.46% | ||
68 Neutral | CHF1.93B | 32.50 | 1.36% | -3.67% | -12.95% | ||
66 Neutral | CHF1.00B | 16.34 | 6.54% | -17.75% | ― | ||
64 Neutral | CHF5.35B | 19.30 | 2.07% | -24.42% | 32.48% | ||
61 Neutral | C$7.19B | -4.76 | -4.20% | 2.32% | 13.56% | -31.48% |
* Industrials Sector Average
Performance Comparison
CH:SUN
Sulzer AG
153.60
31.67
25.97%
CH:OERL
OC Oerlikon Corporation AG
3.05
-1.43
-31.92%
CH:KARN
Kardex AG
322.50
74.96
30.28%
CH:INRN
Interroll Holding AG
2,345.00
-144.23
-5.79%
CH:BUCN
Bucher Industries AG
396.00
52.90
15.42%
CH:GF
Georg Fischer AG
65.15
2.20
3.49%
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.