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 65 industry peers in the Chemicals industry. While SIKA has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SIKA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SIKA was profitable.
In the past year SIKA had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.80%, SIKA belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
With an excellent Return On Equity value of 17.71%, SIKA belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
SIKA's Return On Invested Capital of 10.20% is amongst the best of the industry. SIKA outperforms 86.15% of its industry peers.
SIKA had an Average Return On Invested Capital over the past 3 years of 11.67%. This is significantly above the industry average of 6.60%.
| 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 has a Profit Margin of 10.59%. This is amongst the best in the industry. SIKA outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of SIKA has grown nicely.
The Operating Margin of SIKA (14.57%) is better than 83.08% of its industry peers.
In the last couple of years the Operating Margin of SIKA has grown nicely.
SIKA has a better Gross Margin (54.54%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of SIKA has remained more or less at the same level.
| 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.
Compared to 5 years ago, SIKA has more shares outstanding
The debt/assets ratio for SIKA has been reduced compared to a year ago.
2.2 Solvency
SIKA has an Altman-Z score of 4.11. This indicates that SIKA is financially healthy and has little risk of bankruptcy at the moment.
SIKA has a better Altman-Z score (4.11) than 81.54% of its industry peers.
The Debt to FCF ratio of SIKA is 4.14, which is a neutral value as it means it would take SIKA, 4.14 years of fcf income to pay off all of its debts.
SIKA's Debt to FCF ratio of 4.14 is fine compared to the rest of the industry. SIKA outperforms 80.00% of its industry peers.
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 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 4.11 |
ROIC/WACC2.25
WACC4.54%
2.3 Liquidity
A Current Ratio of 1.77 indicates that SIKA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, SIKA is in line with its industry, outperforming 49.23% of the companies in the same industry.
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.
With a Quick ratio value of 1.24, SIKA perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 10.36% on average over the past years. This is quite good.
SIKA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing slightly by 7.72% on average over the past years.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.83% yearly.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y7.49%
EPS Next 2Y9.35%
EPS Next 3Y9.77%
EPS Next 5Y10.83%
Revenue Next Year2.53%
Revenue Next 2Y3.9%
Revenue Next 3Y4.52%
Revenue Next 5Y4.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 28.19.
The rest of the industry has a similar Price/Earnings ratio as SIKA.
SIKA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.22, which means the current valuation is very expensive for SIKA.
61.54% of the companies in the same industry are cheaper than SIKA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SIKA to the average of the S&P500 Index (22.17), we can say SIKA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 26.22 |
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 63.08% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIKA indicates a somewhat cheap valuation: SIKA is cheaper than 64.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.36 | ||
| EV/EBITDA | 17.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SIKA does not grow enough to justify the current Price/Earnings ratio.
SIKA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.76
PEG (5Y)2.72
EPS Next 2Y9.35%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, SIKA has a reasonable but not impressive dividend return.
SIKA's Dividend Yield is comparable with the industry average which is at 3.09.
Compared to the average S&P500 Dividend Yield of 2.38, SIKA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 (6/4/2025, 7:00:00 PM)
233.4
+1.1 (+0.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners53.2%
Inst Owner ChangeN/A
Ins Owners3.49%
Ins Owner ChangeN/A
Market Cap37.46B
Analysts74.29
Price Target294.5 (26.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 26.22 | ||
| P/S | 2.98 | ||
| P/FCF | 25.36 | ||
| P/OCF | 20.14 | ||
| P/B | 4.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.67 |
EPS(TTM)8.28
EY3.55%
EPS(NY)8.9
Fwd EY3.81%
FCF(TTM)9.2
FCFY3.94%
OCF(TTM)11.59
OCFY4.97%
SpS78.23
BVpS46.77
TBVpS-10.53
PEG (NY)3.76
PEG (5Y)2.72
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 | 4.11 |
F-Score7
WACC4.54%
ROIC/WACC2.25
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 5Y10.83%
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 5Y4.48%
EBIT growth 1Y4.31%
EBIT growth 3Y7.2%
EBIT growth 5Y10.19%
EBIT Next Year36.2%
EBIT Next 3Y16.55%
EBIT Next 5Y14.33%
FCF growth 1Y1.34%
FCF growth 3Y15.71%
FCF growth 5Y6.26%
OCF growth 1Y5.92%
OCF growth 3Y17.88%
OCF growth 5Y7.5%