SGS SA
SGS SA Fundamental Analysis
SGS SA (SGSOF) shows moderate financial fundamentals with a PE ratio of 27.26, profit margin of 9.62%, and ROE of 86.66%. The company generates $7.0B in annual revenue with weak year-over-year growth of 2.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGSOF's fundamental strength across five key dimensions:
Efficiency Score
WeakSGSOF struggles to generate sufficient returns from assets.
Valuation Score
WeakSGSOF trades at a premium to fair value.
Growth Score
WeakSGSOF faces weak or negative growth trends.
Financial Health Score
ModerateSGSOF shows balanced financial health with some risks.
Profitability Score
ModerateSGSOF maintains healthy but balanced margins.
Key Financial Metrics
Is SGSOF Expensive or Cheap?
P/E Ratio
SGSOF trades at 27.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SGSOF's PEG of 7.80 indicates potential overvaluation.
Price to Book
The market values SGS SA at 20.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.23 times EBITDA. This signals the market has high growth expectations.
How Well Does SGSOF Make Money?
Net Profit Margin
For every $100 in sales, SGS SA keeps $9.62 as profit after all expenses.
Operating Margin
Core operations generate 15.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $86.66 in profit for every $100 of shareholder equity.
ROA
SGS SA generates $8.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SGS SA produces operating cash flow of $1.21B, showing steady but balanced cash generation.
Free Cash Flow
SGS SA generates strong free cash flow of $970.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.01 in free cash annually.
FCF Yield
SGSOF converts 5.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.87
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How SGSOF Stacks Against Its Sector Peers
| Metric | SGSOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.26 | 26.89 | Neutral |
| ROE | 86.66% | 1304.00% | Weak |
| Net Margin | 9.62% | -29196.00% (disorted) | Weak |
| Debt/Equity | 5.44 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.44 | 10.90 | Neutral |
| ROA | 8.48% | -1543746.00% (disorted) | Weak |
SGSOF outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SGS SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.49%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-10.64%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
14.72%
Industry Style: Cyclical, Value, Infrastructure
High Growth