Sika (SXYAY) AI Stock Analysis

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Sika

(OTC:SXYAY)

Rating:78Outperform

Price Target:―

Sika's overall stock score reflects its strong financial performance and positive earnings call highlights, such as record revenue growth and successful strategic initiatives. The technical indicators suggest caution, while the valuation implies moderate optimism. Regional growth and effective operations bolster the score, though challenges remain in specific markets.

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

Market Cap

$43.49B

Dividend Yield1.71%

Average Volume (3M)4.06K

Price to Earnings (P/E)30.6

Beta (1Y)0.96

Revenue Growth6.72%

EPS GrowthN/A

CountryUS

Employees33,511

SectorBasic Materials

Sector Strength68

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.48

Shares Outstanding1,604,793,000

10 Day Avg. Volume0

30 Day Avg. Volume4,058

Financial Highlights & Ratios

PEG Ratio0.31

Price to Book (P/B)0.68

Price to Sales (P/S)0.00

P/FCF Ratio4.07

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$33.96

Price Target Upside26.53% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Sika Business Overview & Revenue Model

Company DescriptionSika 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 MoneySika AG generates revenue primarily through the sale of its specialty chemical products and systems to the construction and industrial sectors. The company's key revenue streams include the sale of concrete admixtures, which improve the quality and durability of concrete, and waterproofing systems that protect buildings and structures from moisture damage. Roofing systems and flooring solutions also contribute significantly to its earnings, as these products are essential for the construction and maintenance of buildings. Additionally, Sika offers sealing and bonding materials that are crucial for various industrial applications. The company's global presence and extensive distribution network enable it to reach a broad customer base, including construction companies, industrial manufacturers, and distributors. Strategic acquisitions and partnerships further enhance Sika's product offerings and market reach, contributing to its financial performance.

Sika Earnings Call Summary

Earnings Call Date:Feb 22, 2025

(Q4-2024)

% Change Since: -5.29%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Positive

Sika reported strong financial performance with record revenue growth, improved profitability, and successful integration of MBCC. However, challenges remain in the Chinese market and foreign exchange impacts. The overall outlook remains positive with continued focus on sustainable and profitable growth.

Q4-2024 Updates

Positive Updates

Record Revenue Growth

Sika achieved net sales of CHF 11.76 billion, marking a new record for 2024 with a 7.4% growth in local currency and a 4.7% growth in Swiss francs.

EBITDA Margin Improvement

The company achieved an all-time high EBITDA margin of 19.3%, with an 11% increase in EBITDA to CHF 2.27 billion.

Strong Net Profit Growth

Net profit increased by 17.4%, reaching CHF 1.25 billion, reflecting a strong financial performance.

Successful MBCC Integration

Generated CHF 125 million in synergies from the MBCC acquisition, exceeding initial guidance.

Dividend Growth

The Board of Directors proposed a dividend increase of 9.1% to CHF 3.60 per share.

Improved Employee Engagement

Employee engagement survey showed a strong 86% engagement level, indicating a highly dedicated workforce.

Sustainability Achievements

Significant reductions in accidents (36%), CO2 emissions (10%), and water discharge (7%) were achieved in alignment with sustainability goals.

Negative Updates

Challenging Market in China

Continued difficult construction market in China due to low consumer confidence and deflationary pressures in the residential sector.

Currency Impact on Sales

Foreign exchange negatively impacted sales by 2.7%, equating to a CHF 311 million decrease.

Higher Interest Expenses

Interest expenses increased by CHF 24.5 million, primarily due to MBCC-related financing.

Company Guidance

In the call transcript for Sika's fiscal year 2024, the company reported impressive financial metrics, including a record net sales figure of CHF 11.76 billion, reflecting a 7.4% growth in local currency and a 4.7% increase in Swiss francs. Sika achieved an all-time high EBITDA margin of 19.3%, alongside a net profit jump of 17.4% compared to the previous year. The earnings per share (EPS) rose by 49% to CHF 7.76, and the company has seen a substantial 200% growth in dividends over the last decade. Regionally, sales growth was strong, with the Americas achieving 11%, EMEA 7%, and Asia Pacific 2.4%. Notably, the EMEA region crossed the CHF 5 billion sales mark for the first time, and the Americas reached CHF 4 billion. Sika's strategic efforts, including the successful integration of MBCC and a focus on cross-selling and operational efficiencies, contributed to these results. The company remains optimistic about further growth, setting a target of 3% to 6% sales growth in local currency for 2025, with EBITDA margins expected to rise to between 19.5% and 19.8%.

Sika Financial Statement Overview

Summary

Sika demonstrates strong financial performance with consistent revenue and profit growth, robust margins, a balanced capital structure, and strong cash flow generation. The company effectively utilizes equity, positioning 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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
1.71B	1.55B	1.58B	1.39B	1.13B
	EBITDA
2.30B	2.00B	1.94B	1.76B	1.48B
	Net Income Common Stockholders
1.25B	1.06B	1.16B	1.05B	824.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
712.90M	648.20M	1.88B	1.18B	1.33B
	Total Assets
15.98B	15.05B	11.32B	10.70B	9.79B
	Total Debt
5.72B	5.84B	3.89B	3.66B	4.14B
	Net Debt
5.02B	5.19B	2.02B	2.49B	2.83B
	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

Positive

Last Price26.84

Price Trends

50DMA

25.17

Positive

100DMA

25.33

Positive

200DMA

26.60

Positive

Market Momentum

MACD

0.39

Positive

RSI

60.97

Neutral

STOCH

87.17

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXYAY, the sentiment is Positive. The current price of 26.84 is above the 20-day moving average (MA) of 26.63, above the 50-day MA of 25.17, and above the 200-day MA of 26.60, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 87.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SXYAY.

Sika Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXYAY	78 Outperform	$43.49B	30.57	19.13%	1.71%	6.72%	―
SHW	78 Outperform	$90.40B	34.13	70.22%	0.88%	0.26%	12.82%
RPM	72 Outperform	$14.88B	23.21	25.53%	1.76%	-0.61%	15.06%
EMN	68 Neutral	$9.38B	10.35	16.16%	4.08%	2.78%	1.50%
DD	66 Neutral	$29.36B	40.24	0.06%	2.34%	4.51%	-121.68%
PPG	64 Neutral	$26.11B	19.49	18.47%	2.36%	-7.67%	-0.58%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

* Basic Materials Sector Average

Performance Comparison

SXYAY

Sika

26.84

-2.27

-7.80%

EMN

Eastman Chemical

78.95

-20.22

-20.39%

PPG

PPG Industries

112.03

-14.79

-11.66%

RPM

RPM International

114.86

4.45

4.03%

SHW

Sherwin-Williams Company

357.13

59.14

19.85%

DuPont de Nemours

68.44

-10.05

-12.80%

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.