Sika AG Fundamental Analysis (SIX: SIKA.SW)
Sika AG (SIX: SIKA.SW) shows weak financial fundamentals with a PE ratio of 29.28, profit margin of 9.38%, and ROE of 15.48%. The company generates $11.1B in annual revenue with weak year-over-year growth of -4.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SIKA.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakSIKA.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSIKA.SW shows balanced valuation metrics.
Growth Score
WeakSIKA.SW faces weak or negative growth trends.
Financial Health Score
ExcellentSIKA.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateSIKA.SW maintains healthy but balanced margins.
Key Financial Metrics
Is SIKA.SW Expensive or Cheap?
P/E Ratio
SIKA.SW trades at 29.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SIKA.SW's PEG of -1.99 indicates potential undervaluation.
Price to Book
The market values Sika AG at 4.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.76 times EBITDA. This is generally considered low.
How Well Does SIKA.SW Make Money?
Net Profit Margin
For every $100 in sales, Sika AG keeps $9.38 as profit after all expenses.
Operating Margin
Core operations generate 13.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.48 in profit for every $100 of shareholder equity.
ROA
Sika AG generates $6.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sika AG produces operating cash flow of $1.58B, showing steady but balanced cash generation.
Free Cash Flow
Sika AG generates strong free cash flow of $1.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.64 in free cash annually.
FCF Yield
SIKA.SW converts 4.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SIKA.SW Stacks Against Its Sector Peers
| Metric | SIKA.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.28 | 27.39 | Neutral |
| ROE | 15.48% | 1206.00% | Weak |
| Net Margin | 9.38% | 372.00% | Weak |
| Debt/Equity | 0.89 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.30 | 3.14 | Neutral |
| ROA | 6.51% | 2761.00% | Weak |
SIKA.SW outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sika AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.52%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
11.91%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
2.40%
Industry Style: Cyclical, Commodity, Value
Growing