SIKA AG-REG (SIKA.DE) Stock Fundamental Analysis
FRA:SIKA - Deutsche Boerse Ag - CH0418792922 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SIKA. SIKA was compared to 67 industry peers in the Chemicals industry. SIKA has an excellent profitability rating, but there are some minor concerns on its financial health. SIKA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SIKA had positive earnings in the past year.
SIKA had a positive operating cash flow in the past year.
In the past 5 years SIKA has always been profitable.
SIKA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIKA has a better Return On Assets (7.80%) than 85.07% of its industry peers.
SIKA has a better Return On Equity (17.71%) than 94.03% of its industry peers.
SIKA's Return On Invested Capital of 10.20% is amongst the best of the industry. SIKA outperforms 88.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIKA is significantly above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.71% | ||
| ROIC | 10.2% |
ROA(3y)8.37%
ROA(5y)8.67%
ROE(3y)19.69%
ROE(5y)21.6%
ROIC(3y)11.67%
ROIC(5y)11.84%
1.3 Margins
SIKA's Profit Margin of 10.59% is amongst the best of the industry. SIKA outperforms 83.58% of its industry peers.
SIKA's Profit Margin has improved in the last couple of years.
The Operating Margin of SIKA (14.57%) is better than 83.58% of its industry peers.
SIKA's Operating Margin has improved in the last couple of years.
SIKA has a better Gross Margin (54.54%) than 82.09% of its industry peers.
SIKA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.57% | ||
| PM (TTM) | 10.59% | ||
| GM | 54.54% |
OM growth 3Y-1.05%
OM growth 5Y2.29%
PM growth 3Y-2.22%
PM growth 5Y2.69%
GM growth 3Y1.74%
GM growth 5Y0.36%
2. Health
2.1 Basic Checks
SIKA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SIKA remains at a similar level compared to 1 year ago.
The number of shares outstanding for SIKA has been increased compared to 5 years ago.
SIKA has a better debt/assets ratio than last year.
2.2 Solvency
SIKA has an Altman-Z score of 3.94. This indicates that SIKA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SIKA (3.94) is better than 83.58% of its industry peers.
SIKA has a debt to FCF ratio of 4.14. This is a neutral value as SIKA would need 4.14 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.14, SIKA belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
SIKA has a Debt/Equity ratio of 0.77. This is a neutral value indicating SIKA is somewhat dependend on debt financing.
SIKA's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. SIKA is outperformed by 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 3.94 |
ROIC/WACC2.28
WACC4.48%
2.3 Liquidity
SIKA has a Current Ratio of 1.77. This is a normal value and indicates that SIKA is financially healthy and should not expect problems in meeting its short term obligations.
SIKA has a Current ratio (1.77) which is in line with its industry peers.
SIKA has a Quick Ratio of 1.24. This is a normal value and indicates that SIKA is financially healthy and should not expect problems in meeting its short term obligations.
SIKA has a better Quick ratio (1.24) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.69% over the past year.
SIKA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.36% yearly.
The Revenue has been growing slightly by 4.67% in the past year.
SIKA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.72% yearly.
EPS 1Y (TTM)16.69%
EPS 3Y5.55%
EPS 5Y10.36%
EPS Q2Q%2.71%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y8.33%
Revenue growth 5Y7.72%
Sales Q2Q%0.6%
3.2 Future
SIKA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.94% yearly.
The Revenue is expected to grow by 4.97% on average over the next years.
EPS Next Y7.49%
EPS Next 2Y9.35%
EPS Next 3Y9.77%
EPS Next 5Y7.94%
Revenue Next Year2.53%
Revenue Next 2Y3.9%
Revenue Next 3Y4.52%
Revenue Next 5Y4.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SIKA is valuated quite expensively with a Price/Earnings ratio of 26.09.
SIKA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SIKA to the average of the S&P500 Index (27.50), we can say SIKA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.26, the valuation of SIKA can be described as rather expensive.
SIKA's Price/Forward Earnings ratio is in line with the industry average.
SIKA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.09 | ||
| Fwd PE | 24.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIKA indicates a slightly more expensive valuation: SIKA is more expensive than 62.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SIKA is valued a bit cheaper than 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.47 | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SIKA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.48
PEG (5Y)2.52
EPS Next 2Y9.35%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
SIKA has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, SIKA has a dividend in line with its industry peers.
SIKA's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of SIKA decreases each year by -4.26%.
Dividend Growth(5Y)-4.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SIKA pays out 21.25% of its income as dividend. This is a sustainable payout ratio.
DP21.25%
EPS Next 2Y9.35%
EPS Next 3Y9.77%
FRA:SIKA (7/18/2025, 7:00:00 PM)
217.1
-1 (-0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners52.78%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap34.84B
Analysts76
Price Target288.9 (33.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.77
Dividend Growth(5Y)-4.26%
DP21.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.86%
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.09 | ||
| Fwd PE | 24.26 | ||
| P/S | 2.76 | ||
| P/FCF | 23.47 | ||
| P/OCF | 18.64 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.59 |
EPS(TTM)8.32
EY3.83%
EPS(NY)8.95
Fwd EY4.12%
FCF(TTM)9.25
FCFY4.26%
OCF(TTM)11.65
OCFY5.37%
SpS78.62
BVpS47.01
TBVpS-10.58
PEG (NY)3.48
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.71% | ||
| ROCE | 12.8% | ||
| ROIC | 10.2% | ||
| ROICexc | 10.76% | ||
| ROICexgc | 33.56% | ||
| OM | 14.57% | ||
| PM (TTM) | 10.59% | ||
| GM | 54.54% | ||
| FCFM | 11.76% |
ROA(3y)8.37%
ROA(5y)8.67%
ROE(3y)19.69%
ROE(5y)21.6%
ROIC(3y)11.67%
ROIC(5y)11.84%
ROICexc(3y)13.24%
ROICexc(5y)13.63%
ROICexgc(3y)40.24%
ROICexgc(5y)38.69%
ROCE(3y)14.65%
ROCE(5y)14.86%
ROICexcg growth 3Y-2.53%
ROICexcg growth 5Y2.29%
ROICexc growth 3Y-10.28%
ROICexc growth 5Y-1.73%
OM growth 3Y-1.05%
OM growth 5Y2.29%
PM growth 3Y-2.22%
PM growth 5Y2.69%
GM growth 3Y1.74%
GM growth 5Y0.36%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 64.61% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 11.95 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 111.1% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3.94 |
F-Score7
WACC4.48%
ROIC/WACC2.28
Cap/Depr(3y)63.42%
Cap/Depr(5y)54.55%
Cap/Sales(3y)2.69%
Cap/Sales(5y)2.32%
Profit Quality(3y)103.8%
Profit Quality(5y)109.45%
High Growth Momentum
Growth
EPS 1Y (TTM)16.69%
EPS 3Y5.55%
EPS 5Y10.36%
EPS Q2Q%2.71%
EPS Next Y7.49%
EPS Next 2Y9.35%
EPS Next 3Y9.77%
EPS Next 5Y7.94%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y8.33%
Revenue growth 5Y7.72%
Sales Q2Q%0.6%
Revenue Next Year2.53%
Revenue Next 2Y3.9%
Revenue Next 3Y4.52%
Revenue Next 5Y4.97%
EBIT growth 1Y4.31%
EBIT growth 3Y7.2%
EBIT growth 5Y10.19%
EBIT Next Year36.2%
EBIT Next 3Y16.55%
EBIT Next 5Y13.18%
FCF growth 1Y1.34%
FCF growth 3Y15.71%
FCF growth 5Y6.26%
OCF growth 1Y5.92%
OCF growth 3Y17.88%
OCF growth 5Y7.5%