Sika (SXYAY)
OTHER OTC:SXYAY
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Sika
(OTC:SXYAY)
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Rating:65Neutral
Price Target:
$18.50
▼(-16.78% Downside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid (but recently weakening) financial performance and a cautiously constructive 2026 outlook from management, tempered by softer 2025 growth/margins and FX/China-related headwinds. Technicals are mildly supportive, while valuation (P/E ~26 with a ~2% yield) limits upside in the score.
Positive Factors
Strong gross and EBIT margins
Sika’s mid-50% gross margin and mid-teens EBIT margin reflect durable pricing power from differentiated, system-based products and technical support. These structural margins support reinvestment and resilience versus commodity peers, sustaining profitability through cycles.
Negative Factors
China residential demand collapse
Severe, sustained weakness in China residential construction is a structural demand headwind given Sika’s exposure in APAC. Persistent low activity directly depresses organic growth and leaves group revenue and utilization exposed to a slow regional recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross and EBIT margins
Sika’s mid-50% gross margin and mid-teens EBIT margin reflect durable pricing power from differentiated, system-based products and technical support. These structural margins support reinvestment and resilience versus commodity peers, sustaining profitability through cycles.
Read all positive factors
Sika (SXYAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.70B
Dividend Yield2.05%
Average Volume (3M)22.83K
Price to Earnings (P/E)26.1
Beta (1Y)0.91
Revenue Growth1.27%
EPS GrowthN/A
CountryUS
Employees33,511
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.38
Shares Outstanding1,604,793,000
10 Day Avg. Volume0
30 Day Avg. Volume22,828
Financial Highlights & Ratios
PEG Ratio-1.29
Price to Book (P/B)3.90
Price to Sales (P/S)2.32
P/FCF Ratio21.88
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit4.38
Enterprise Value/Ebitda13.64
Forecast
1Y Price Target
$25.50Price Target Upside14.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.92
Revenue Forecast (FY)$14.02B
Sika Business Overview & Revenue Model
Company Description
Sika 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, an...
How the Company Makes Money
Sika makes money primarily by manufacturing and selling specialty chemical products and integrated system solutions used across the construction lifecycle (new build, refurbishment, and infrastructure maintenance) and in selected industrial manufa...
Sika Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook. Management documented clear operational progress (material margin expansion, strong cash generation, validated M&A playbook and growing synergies, a high-return Fast Forward program and attractive pockets of demand such as data centers). However, significant headwinds persist — most notably China residential weakness, adverse FX translation, Fast Forward one-off charges and Q4 softness — which compressed reported results in 2025 and make 2026 outcomes sensitive to market and currency movements. On balance, the company’s demonstrated cash strength, margin improvements ex-one-offs, accretive M&A execution and explicit recovery plan underpin a positive medium-term view despite short-term cyclical risks.Positive Updates
Stable Full-Year Sales and Local-Currency Outperformance
Reported sales of CHF 11.2 billion; 0.6% growth in local currency versus an estimated market decline of ~2.5%, demonstrating outperformance in a weak market.
Negative Updates
Significant China Residential Weakness
China residential market volume reduced by ~45% over two years; China construction business declined ~18% in 2025 — a major drag on group performance and a driver of the negative organic growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Stable Full-Year Sales and Local-Currency Outperformance
Reported sales of CHF 11.2 billion; 0.6% growth in local currency versus an estimated market decline of ~2.5%, demonstrating outperformance in a weak market.
Read all positive updates
Company Guidance
Sika guided FY2026 local‑currency sales growth of 1–4% (including M&A) with an EBITDA margin target around 19.0–20.0% (mid ≈19.5%) and reconfirmed its mid‑term Strategy ’28 ambition to outgrow markets by 3–6% in LC. Management expects Fast Forward to already deliver about CHF 80m of benefits in 2026 (after CHF 108m one‑time Fast Forward costs recognized in 2025, CHF 86m of which hit EBITDA), is planning CHF 120–150m of digital/tech investments over the next three years and targets CHF 150–200m annual run‑rate benefits by 2028. For context FY2025 was CHF 11.2bn sales, EBITDA CHF 2.065bn (18.4% reported; 19.2% excl. Fast Forward), material margin 54.9%, operating free cash flow CHF 1.36bn (12.1% of sales), FX was a ~‑5.4% translation headwind in 2025 and current spot rates imply ~‑3–4% FX exposure for 2026; the Board proposes a CHF 3.70 dividend (+2.8%).Sika Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.20B | 11.76B | 11.24B | 10.49B | 9.25B |
| Gross Profit | 6.15B | 6.42B | 6.02B | 5.18B | 4.79B |
| EBITDA | 1.97B | 2.30B | 2.00B | 1.94B | 1.76B |
| Net Income | 998.31M | 1.25B | 1.06B | 1.16B | 1.05B |
Balance Sheet | |||||
| Total Assets | 15.38B | 15.98B | 15.05B | 11.32B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 808.52M | 712.90M | 648.20M | 1.88B | 1.18B |
| Total Debt | 5.85B | 5.72B | 5.84B | 3.89B | 3.66B |
| Total Liabilities | 8.71B | 8.93B | 9.12B | 6.35B | 6.30B |
| Stockholders Equity | 6.66B | 7.03B | 5.92B | 4.97B | 4.39B |
Cash Flow | |||||
| Free Cash Flow | 1.19B | 1.38B | 1.37B | 833.80M | 893.30M |
| Operating Cash Flow | 1.52B | 1.74B | 1.65B | 1.10B | 1.06B |
| Investing Cash Flow | -530.62M | -580.70M | -3.52B | -169.00M | -469.20M |
| Financing Cash Flow | -862.79M | -1.08B | 694.90M | -190.00M | -736.80M |
Sika Technical Analysis
Neutral
22.23
Price Trends
18.18
Negative
18.76
Negative
20.78
Negative
Market Momentum
-0.38
Negative
52.08
Neutral
65.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXYAY, the sentiment is Neutral. The current price of 22.23 is above the 20-day moving average (MA) of 16.46, above the 50-day MA of 18.18, and above the 200-day MA of 20.78, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SXYAY.
Sika Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.16B | 70.63 | 21.80% | 1.96% | 3.09% | 12.25% | |
68 Neutral | $8.30B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
68 Neutral | $24.52B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
67 Neutral | $83.19B | 31.08 | 58.53% | 0.98% | 0.96% | 1.96% | |
65 Neutral | $27.70B | 26.06 | 16.28% | 2.05% | 1.27% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $19.44B | -21.54 | -3.77% | 1.74% | 2.42% | -196.54% |
* Basic Materials Sector Average
SXYAY
Sika
17.26
-5.32
-23.55%
EMN
Eastman Chemical
72.71
0.23
0.32%
PPG
PPG Industries
109.70
13.70
14.27%
RPM
RPM International
110.97
10.47
10.42%
SHW
Sherwin-Williams Company
335.73
8.74
2.67%
DD
DuPont de Nemours
47.42
23.79
100.68%
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.