Sika (SXYAY) AI Stock Analysis

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Sika

(OTC:SXYAY)

Rating:72Outperform

Price Target:

$29.00

▲(15.77%Upside)

Sika's strong financial performance and positive earnings call sentiment are significant strengths, reflecting robust growth and operational efficiency. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors, combined with the moderate dividend yield, result in a balanced overall stock score.

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

Market Cap

$40.91B

Dividend Yield1.8%

Average Volume (3M)5.79K

Price to Earnings (P/E)29.0

Beta (1Y)0.91

Revenue Growth6.72%

EPS GrowthN/A

CountryUS

Employees33,511

SectorBasic Materials

Sector Strength63

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.48

Shares Outstanding1,604,793,000

10 Day Avg. Volume11,595

30 Day Avg. Volume5,795

Financial Highlights & Ratios

PEG Ratio101.61

Price to Book (P/B)4.65

Price to Sales (P/S)0.00

P/FCF Ratio24.18

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$32.15

Price Target Upside28.34% 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:Feb 22, 2025

(Q4-2024)

% Change Since: -11.61%|

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 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 Price25.05

Price Trends

50DMA

26.31

Negative

100DMA

25.56

Negative

200DMA

26.04

Negative

Market Momentum

MACD

-0.23

Positive

RSI

36.23

Neutral

STOCH

0.02

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 25.05 is below the 20-day moving average (MA) of 26.38, below the 50-day MA of 26.31, and below the 200-day MA of 26.04, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 0.02 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHW	74 Outperform	$84.97B	32.08	70.22%	0.93%	0.26%	12.82%
SXYAY	72 Outperform	$40.91B	28.96	19.13%	1.80%	6.72%	―
RPM	71 Outperform	$14.14B	22.04	25.53%	1.85%	-0.61%	15.06%
EMN	69 Neutral	$8.91B	9.82	16.16%	4.30%	2.78%	1.50%
PPG	64 Neutral	$25.94B	19.36	18.47%	2.38%	-7.67%	-0.58%
DD	63 Neutral	$31.00B	40.24	0.06%	2.21%	4.51%	-121.68%
Sector *	62 Neutral	$10.15B	9.72	0.09%	2.91%	2.26%	-33.42%

* Basic Materials Sector Average

Performance Comparison

SXYAY

Sika

25.05

-4.17

-14.27%

EMN

Eastman Chemical

77.55

-16.15

-17.24%

PPG

PPG Industries

115.57

-9.54

-7.63%

RPM

RPM International

110.59

0.06

0.05%

SHW

Sherwin-Williams Company

339.86

20.65

6.47%

DuPont de Nemours

73.95

-4.11

-5.27%

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 12, 2025