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Sika AG Unsponsored ADR (SXYAY)
:SXYAY
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Sika
(OTC:SXYAY)
Select Model
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Rating:68Neutral
Price Target:
$23.50
▲(5.71% Upside)
Sika's overall stock score reflects strong financial performance and a cautiously optimistic earnings outlook, tempered by bearish technical indicators and moderate valuation. The company's strategic growth initiatives and operational efficiencies are positive, but market challenges and current stock trends present risks.
Positive Factors
Strong Regional Performance
Strong growth in EMEA and Americas indicates robust market presence and effective regional strategies, supporting long-term revenue stability.
Increased Synergy Targets
Raising synergy targets reflects successful integration efforts, enhancing operational efficiency and profitability over the long term.
EBITDA Margin Improvement
Improved EBITDA margin showcases effective cost management and operational efficiencies, contributing to sustainable profit growth.
Negative Factors
Adverse Foreign Exchange Impact
Currency fluctuations pose a risk to revenue growth, potentially affecting profitability and financial performance in the long term.
Challenges in China
Deflationary pressures in China could hinder growth prospects in a key market, affecting overall revenue and strategic goals.
Decline in Operating Free Cash Flow
Reduced operating free cash flow may limit financial flexibility, impacting the company's ability to invest in growth opportunities.
Sika (SXYAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.00B
Dividend Yield2.1%
Average Volume (3M)22.83K
Price to Earnings (P/E)22.7
Beta (1Y)0.89
Revenue Growth1.27%
EPS GrowthN/A
CountryUS
Employees33,511
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.43
Shares Outstanding1,604,793,000
10 Day Avg. Volume68,485
30 Day Avg. Volume22,828
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)4.89
Price to Sales (P/S)2.92
P/FCF Ratio24.83
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue4.36
Enterprise Value/Gross Profit7.99
Enterprise Value/Ebitda22.27
Forecast
1Y Price Target
$27.10Price Target Upside21.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sika Business Overview & Revenue Model
Company DescriptionSika AG is a global leader in specialty chemicals and construction materials, headquartered in Switzerland. The company operates in various sectors, including construction, automotive, industrial manufacturing, and maintenance. Sika's core products include adhesives, sealants, concrete admixtures, and waterproofing solutions, which are designed to enhance the durability and performance of construction and industrial applications.
How the Company Makes MoneySika generates revenue primarily through the sale of its diverse range of construction and industrial products. The company operates through several key segments, including Construction and Industry, which contribute to its earnings by providing innovative solutions that meet the needs of various markets. Sika's revenue model is based on direct sales to customers, as well as through distributors and partners in different regions. Key revenue streams include product sales, technical services, and consulting related to construction projects. The company also benefits from significant partnerships with major construction firms and manufacturers, which enhance its market reach and contribute to its overall financial performance.
Sika Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements like increased synergy targets and strong regional performance in EMEA and Americas. However, challenges such as adverse foreign exchange impacts and deflationary pressures in China were significant. The overall sentiment remains cautiously optimistic with an emphasis on strategic growth and efficiency improvements.Q2-2025 Updates
Positive Updates
Strong EMEA and Americas Performance
EMEA region demonstrated consistent improvement with a 1.9% growth in constant currencies, and significant double-digit growth in Middle East and Africa. The Americas saw a 3.5% growth in local currencies, with Latin America showing positive growth momentum.
Increased Synergy Targets
MBCC synergy targets were increased by CHF 20 million for the ongoing year, contributing to an overall synergy expectation of CHF 200 million to CHF 220 million by 2026.
EBITDA Margin Improvement
EBITDA margin expanded by 20 basis points to 18.9%, driven by cost efficiencies and synergies.
Bolt-On Acquisitions
Closed 4 bolt-on acquisitions in roofing, building finishing, and expansion in Qatar, indicating a strong market consolidation strategy.
Improved Cost Control
Operating costs decreased over-proportionally, driven by MBCC synergies and operational efficiency measures.
Negative Updates
Adverse Foreign Exchange Impact
Foreign exchange effects reduced local currency growth by 4.3 percentage points, particularly affecting sales growth in Swiss francs.
Challenges in China
China faced deflationary market conditions, impacting growth negatively by -4.7% in the region, with a focus on protecting margins.
Mixed Performance in Americas
The U.S. market experienced mixed signals from trade policy, causing a slowdown in growth momentum.
Decline in Operating Free Cash Flow
Operating free cash flow was lower than the previous year, partially due to seasonal working capital increases and higher investments.
Company Guidance
In the first half of 2025, Sika reported a modest sales growth of 1.6% in local currency, with organic growth at 0.6%, despite challenging market conditions. The company's EBITDA margin improved by 20 basis points to 18.9%, driven by efficiencies and synergies, notably increasing their MBCC synergy targets by CHF 20 million for the ongoing year. Regional performance varied, with EMEA growing 1.9% at constant currencies and the Americas seeing 3.5% growth in local currencies. Asia Pacific experienced a decline of 4.7%, primarily due to the deflationary market environment in China. Adverse foreign exchange movements impacted sales growth by 4.3 percentage points. Sika closed four acquisitions, contributing to 1 percentage point of additional growth. Looking ahead, Sika is committed to outpacing the market and achieving an EBITDA margin between 19.5% and 19.8% for the full year, with a focus on sustainable and profitable growth as outlined in their Strategy '28.Sika Financial Statement Overview
Summary
Sika demonstrates solid financial health with consistent revenue and profit growth, efficient operations, and strong cash flow generation. The company maintains a balanced capital structure and effective equity utilization, positioning it well within the competitive chemicals industry.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.60B | 11.76B | 11.24B | 10.49B | 9.25B | 7.88B |
| Gross Profit | 6.33B | 6.42B | 6.02B | 5.18B | 4.79B | 4.31B |
| EBITDA | 2.27B | 2.30B | 2.00B | 1.94B | 1.76B | 1.48B |
| Net Income | 1.22B | 1.25B | 1.06B | 1.16B | 1.05B | 824.50M |
Balance Sheet | ||||||
| Total Assets | 15.39B | 15.98B | 15.05B | 11.32B | 10.70B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 520.40M | 712.90M | 648.20M | 1.88B | 1.18B | 1.33B |
| Total Debt | 6.19B | 5.72B | 5.84B | 3.89B | 3.66B | 4.18B |
| Total Liabilities | 9.21B | 8.93B | 9.12B | 6.35B | 6.30B | 6.51B |
| Stockholders Equity | 6.17B | 7.03B | 5.92B | 4.97B | 4.39B | 3.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.38B | 1.37B | 833.80M | 893.30M | 1.24B |
| Operating Cash Flow | 1.55B | 1.74B | 1.65B | 1.10B | 1.06B | 1.37B |
| Investing Cash Flow | -618.20M | -580.70M | -3.52B | -169.00M | -469.20M | -253.10M |
| Financing Cash Flow | -1.01B | -1.08B | 694.90M | -190.00M | -736.80M | -769.00M |
Sika Technical Analysis
Negative
22.23
Price Trends
20.48
Negative
22.07
Negative
23.81
Negative
Market Momentum
-0.20
Negative
54.00
Neutral
84.27
Negative
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 22.23 is above the 20-day moving average (MA) of 19.28, above the 50-day MA of 20.48, and below the 200-day MA of 23.81, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 84.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SXYAY.
Sika Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $13.50B | 19.66 | 24.05% | 1.97% | 3.09% | 12.25% | |
73 Outperform | $82.58B | 32.53 | 59.94% | 0.95% | 0.96% | 1.96% | |
68 Neutral | $32.00B | 22.67 | 18.94% | 2.10% | 1.27% | ― | |
67 Neutral | $7.02B | 10.26 | 12.24% | 5.47% | -3.33% | -19.59% | |
67 Neutral | $22.67B | 18.03 | 16.31% | 2.75% | -12.98% | -11.34% | |
62 Neutral | $16.97B | ― | -0.46% | 1.76% | 2.42% | -196.54% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
SXYAY
Sika
19.92
-6.69
-25.14%
EMN
Eastman Chemical
61.53
-34.56
-35.97%
PPG
PPG Industries
101.03
-22.56
-18.25%
RPM
RPM International
105.30
-27.08
-20.46%
SHW
Sherwin-Williams Company
333.11
-40.02
-10.73%
DD
DuPont de Nemours
40.51
6.31
18.45%
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.