Sulzer AG (SUN) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: 3.07%
• Average Volume (3M): 32.43K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.16
• Revenue Growth: 5.79%
• EPS Growth: 13.20%
• Country: CH
• Employees: 13,455
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.74
• Shares Outstanding: 34,262,367
• 10 Day Avg. Volume: 35,834
• 30 Day Avg. Volume: 32,426
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 10.32
• 1Y Price Target: $173.00
• Price Target Upside: 29.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: CHF166.00 ▲(24.44% Upside)

Sulzer AG's overall stock score reflects its strong financial performance and fair valuation. While the company shows robust growth and profitability, technical indicators suggest short-term weakness. The mixed sentiment from the earnings call highlights both opportunities and challenges, particularly in the Chemtech division and due to currency fluctuations.

Positive Factors

Negative Factors

Sulzer AG Business Overview & Revenue Model

Company Description

Sulzer Ltd provides fluid engineering services. The company operates through Flow Equipment, Services, Chemtech, and Others segments. It offers side-mounted horizontal and top-mounted vertical agitators, dynamic chemical mixers, and tower and tank flow management products; tower management systems; turbo compressors, aeration systems, and mechanical aerators; cartridges, mixers, dispensers, and accessories; process solutions, which include the initial concept and pilot testing; medium consistency products; pumping solutions and auxiliary equipment; and control and monitoring equipment. The company also provides lifting stations; pump and lifting station accessories; products for distillation, absorption, stripping, evaporation, phase separation, liquid-liquid extraction, and crystallization; static and submersible mixers; solids reduction, separation, and removal systems; and screening, sedimentation, and filtration solutions. In addition, its services include rotating equipment services; static equipment services, welding, plant maintenance, and turnaround project services. Further, the company digital solution, which includes control and monitoring software solutions that include a range of software primarily designed to simplify set-up and maintenance for web-based alarm handling and monitoring software; sense condition monitoring solutions, which detects possible equipment failures early on and optimizes maintenance planning.; PumpsOnline services that allow access to equipment-related information; BLUE BOX, a collaborative digital solution; and DOC BOX, which allows users to systematically identify the root cause of a problem. It serves oil and gas; chemical; general industry; water; power; adhesive, dental, and healthcare; and beauty markets. The company operates in Switzerland, the United Kingdom, Saudi Arabia, Germany, Spain, Sweden, the Americas, and the Asia Pacific. Sulzer Ltd was founded in 1834 and is headquartered in Winterthur, Switzerland.

How the Company Makes Money

Sulzer 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 133.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SUN, the sentiment is Negative. The current price of 133.4 is below the 20-day moving average (MA) of 141.77, below the 50-day MA of 149.19, and below the 200-day MA of 144.36, indicating a bearish trend. The MACD of -4.11 indicates Positive momentum. The RSI at 26.18 is Positive, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SUN.

Sulzer AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	73 Outperform	$4.55B	16.67	23.37%	3.07%	5.79%	13.20%
KARN	70 Outperform	2.46B	33.13	―	1.91%	11.43%	6.46%
BUCN	68 Neutral	3.98B	17.65	12.05%	2.87%	-11.64%	-24.17%
INRN	68 Neutral	2.10B	35.35	13.23%	1.28%	-3.67%	-12.95%
OERL	66 Neutral	924.58M	-897.42	5.90%	7.18%	-17.75%	―
GF	60 Neutral	5.13B	18.49	196.33%	2.19%	-24.42%	32.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%