Sika AG
Sika AG Fundamental Analysis
Sika AG (SKFOF) shows moderate financial fundamentals with a PE ratio of 28.05, profit margin of 6.85%, and ROE of 11.97%. The company generates $11.2B in annual revenue with moderate year-over-year growth of 4.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKFOF's fundamental strength across five key dimensions:
Efficiency Score
WeakSKFOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSKFOF shows balanced valuation metrics.
Growth Score
ModerateSKFOF shows steady but slowing expansion.
Financial Health Score
ExcellentSKFOF maintains a strong and stable balance sheet.
Profitability Score
WeakSKFOF struggles to sustain strong margins.
Key Financial Metrics
Is SKFOF Expensive or Cheap?
P/E Ratio
SKFOF trades at 28.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SKFOF's PEG of 1.28 indicates fair valuation.
Price to Book
The market values Sika AG at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.77 times EBITDA. This signals the market has high growth expectations.
How Well Does SKFOF Make Money?
Net Profit Margin
For every $100 in sales, Sika AG keeps $6.85 as profit after all expenses.
Operating Margin
Core operations generate 10.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.97 in profit for every $100 of shareholder equity.
ROA
Sika AG generates $5.00 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 $1.48B, showing steady but balanced cash generation.
Free Cash Flow
Sika AG generates strong free cash flow of $1.22B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.59 in free cash annually.
FCF Yield
SKFOF converts 5.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SKFOF Stacks Against Its Sector Peers
| Metric | SKFOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.05 | 24.91 | Worse (Expensive) |
| ROE | 11.97% | 840.00% | Weak |
| Net Margin | 6.85% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.88 | 0.55 | Weak (High Leverage) |
| Current Ratio | 1.25 | 4.94 | Neutral |
| ROA | 5.00% | -4176.00% (disorted) | Weak |
SKFOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
28.16%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
46.35%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
26.85%
Industry Style: Cyclical, Commodity, Value
High Growth