Sika (SXYAY) AI Stock Analysis

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Sika

(OTC:SXYAY)

Rating:70Outperform

Price Target:

$27.00

▲(13.07% Upside)

Sika's overall performance is solid, driven by robust financial health and strategic growth initiatives. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call provided a balanced view with notable strengths and ongoing challenges.

Sika (SXYAY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$37.74B

Dividend Yield3.66%

Average Volume (3M)7.88K

Price to Earnings (P/E)26.7

Beta (1Y)0.92

Revenue Growth1.27%

EPS GrowthN/A

CountryUS

Employees33,511

SectorBasic Materials

Sector Strength57

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.43

Shares Outstanding1,604,793,000

10 Day Avg. Volume6,264

30 Day Avg. Volume7,883

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 Cap1.34

Enterprise Value/Revenue4.30

Enterprise Value/Gross Profit7.88

Enterprise Value/Ebitda21.94

Forecast

1Y Price Target

$32.15

Price Target Upside34.63% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Sika Business Overview & Revenue Model

Company DescriptionSika (SXYAY) is a global specialty chemical company based in Switzerland, renowned for its innovative solutions in the construction and industrial sectors. The company specializes in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and automotive industry. Sika's extensive product portfolio includes concrete admixtures, mortars, sealants and adhesives, structural strengthening systems, flooring, and waterproofing solutions.

How the Company Makes MoneySika makes money primarily through the sale of its high-performance construction and industrial products. The company's revenue model is built around the manufacturing and distribution of specialty chemicals and systems that enhance durability and sustainability in construction and industrial applications. Key revenue streams include sales from its construction business, which provides products such as concrete admixtures, waterproofing systems, roofing, and flooring solutions. Additionally, Sika generates substantial revenue from its industrial segment, which offers adhesive and sealant solutions, as well as systems for automotive and transportation markets. The company's global reach, extensive distribution network, and strategic acquisitions also play a significant role in driving its earnings.

Sika Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: -3.08%|

Next Earnings Date:Feb 20, 2026

Earnings Call Sentiment Neutral

The earnings call highlighted Sika's strong operational performance and resilience in challenging markets, with positive developments in synergy realization and strategic acquisitions. However, significant challenges such as foreign exchange impacts, a difficult market environment in China, and trade policy uncertainties in the Americas were noted. The sentiment is balanced with both positive and negative aspects.

Q2-2025 Updates

Positive Updates

Strong EBITDA Margin Growth

The EBITDA margin expanded by 20 basis points to 18.9%, showcasing strong operational efficiency and synergy realization from the MBCC acquisition.

Resilience in Challenging Markets

Sika achieved 0.6% local currency growth in a declining market, maintaining a high material margin of 55.1%.

Successful Synergy Realization

MBCC synergy targets have been raised by CHF 20 million for the ongoing year, with total expected synergies for the full year now between CHF 160 million to CHF 180 million.

Strategic Acquisitions

Closed 4 bolt-on acquisitions in roofing, building finishing, and expansion in Qatar, indicating strong consolidation efforts in a fragmented industry.

Growth in Key Regions

Strong growth in regions like the Middle East, Africa, and Latin America, with significant double-digit growth in these areas.

Negative Updates

Negative Foreign Exchange Impact

Sales were adversely impacted by foreign exchange movements, reducing local currency growth by 4.3 percentage points in the period.

Challenging Market in China

Deflationary market environment in China led to negative growth in Asia Pacific, with organic growth at minus 2.1%.

Trade Policy Impact in the Americas

Mixed signals in U.S. trade policy unsettled market participants, slowing market momentum in the U.S. and North America.

Cash Flow Reduction

Operating free cash flow decreased to CHF 181.9 million from CHF 401 million in the previous year, affected by various factors including currency movements and higher investment in growth.

Sales Decline in Asia Pacific

Sales in Asia Pacific declined by minus 4.7%, mainly due to challenges in the Chinese construction sector.

Company Guidance

During the Sika Half Year 2025 Results Conference Call, guidance was provided with a focus on modest sales growth in local currency for the full year and an EBITDA margin target of 19.5% to 19.8%. The company achieved 0.6% local currency growth, supported by price and volume despite challenging market conditions. Material margin was maintained at 55.1%, and the EBITDA margin improved by 20 basis points to 18.9%. The company also raised its MBCC synergy targets by CHF 20 million for the current and following year. Despite adverse foreign exchange effects reducing growth by 4.3 percentage points, Sika demonstrated resilience with strong market share gains, especially in EMEA and Latin America. The company closed four acquisitions in roofing and building finishing, with plans for continued consolidation in the fragmented market.

Sika Financial Statement Overview

Summary

Sika demonstrates solid financial health with consistent revenue and profit growth, efficient operations, and strong cash flow generation. The balanced capital structure and effective equity utilization position it well within the competitive chemicals industry.

Income Statement

Very Positive

Sika has demonstrated consistent revenue growth, with a 4.67% increase from 2023 to 2024. The gross profit margin has remained strong at 54.54%. The net profit margin improved to 10.59%, indicating enhanced profitability. Both EBIT and EBITDA margins are robust at 14.57% and 19.59%, respectively, showcasing operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio is 0.81, reflecting a balanced capital structure. Return on equity stands at a healthy 17.72%, indicating effective use of equity financing. The equity ratio is 44.02%, which suggests a stable financial position with adequate equity backing.

Cash Flow

Positive

Sika's free cash flow grew marginally by 1.34% from 2023 to 2024, indicating steady cash generation. The operating cash flow to net income ratio is 1.40, and the free cash flow to net income ratio is 1.11, both signifying strong cash flow relative to net income, enhancing financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.76B	11.24B	10.49B	9.25B	7.88B
Gross Profit	6.42B	6.02B	5.18B	4.79B	4.31B
EBITDA	2.30B	2.00B	1.94B	1.76B	1.48B
Net Income	1.25B	1.06B	1.16B	1.05B	824.50M
Balance Sheet
Total Assets	15.98B	15.05B	11.32B	10.70B	9.79B
Cash, Cash Equivalents and Short-Term Investments	712.90M	648.20M	1.88B	1.18B	1.33B
Total Debt	5.72B	5.84B	3.89B	3.66B	4.14B
Total Liabilities	8.93B	9.12B	6.35B	6.30B	6.51B
Stockholders Equity	7.03B	5.92B	4.97B	4.39B	3.29B
Cash Flow
Free Cash Flow	1.38B	1.37B	833.80M	893.30M	1.24B
Operating Cash Flow	1.74B	1.65B	1.10B	1.06B	1.37B
Investing Cash Flow	-580.70M	-3.52B	-169.00M	-469.20M	-253.10M
Financing Cash Flow	-1.08B	694.90M	-190.00M	-736.80M	-769.00M

Sika Technical Analysis

Technical Analysis Sentiment

Negative

Last Price23.88

Price Trends

50DMA

26.16

Negative

100DMA

25.49

Negative

200DMA

25.67

Negative

Market Momentum

MACD

-0.52

Positive

RSI

32.85

Neutral

STOCH

2.29

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXYAY, the sentiment is Negative. The current price of 23.88 is below the 20-day moving average (MA) of 25.40, below the 50-day MA of 26.16, and below the 200-day MA of 25.67, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 32.85 is Neutral, neither overbought nor oversold. The STOCH value of 2.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SXYAY.

Sika Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	$15.40B	22.42	25.42%	1.74%	0.51%	17.21%
SHW	72 Outperform	$87.79B	34.96	62.43%	0.88%	0.31%	2.66%
SXYAY	70 Outperform	$37.74B	26.71	18.94%	3.66%	1.27%	―
EMN	63 Neutral	$7.05B	8.62	14.52%	5.38%	1.60%	-3.97%
DD	61 Neutral	$30.38B	40.24	0.31%	2.18%	4.51%	-121.68%
Sector *	61 Neutral	$9.67B	7.09	-0.14%	3.12%	3.13%	-55.47%
PPG	55 Neutral	$23.93B	18.80	16.88%	2.57%	-10.59%	-7.79%

* Basic Materials Sector Average

Performance Comparison

SXYAY

Sika

23.50

-4.77

-16.87%

EMN

Eastman Chemical

61.39

-30.68

-33.32%

PPG

PPG Industries

106.02

-10.48

-9.00%

RPM

RPM International

119.99

7.19

6.37%

SHW

Sherwin-Williams Company

352.09

12.19

3.59%

DuPont de Nemours

72.60

-4.36

-5.67%

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.Date of analysis: Jul 30, 2025