Sulzer Ltd
Sulzer Ltd Fundamental Analysis
Sulzer Ltd (SULZF) shows moderate financial fundamentals with a PE ratio of 21.27, profit margin of 7.63%, and ROE of 23.16%. The company generates $3.5B in annual revenue with moderate year-over-year growth of 7.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.7/100 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 SULZF's fundamental strength across five key dimensions:
Efficiency Score
WeakSULZF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSULZF shows balanced valuation metrics.
Growth Score
ExcellentSULZF delivers strong and consistent growth momentum.
Financial Health Score
ModerateSULZF shows balanced financial health with some risks.
Profitability Score
ModerateSULZF maintains healthy but balanced margins.
Key Financial Metrics
Is SULZF Expensive or Cheap?
P/E Ratio
SULZF trades at 21.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SULZF's PEG of 5.67 indicates potential overvaluation.
Price to Book
The market values Sulzer Ltd at 5.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.43 times EBITDA. This signals the market has high growth expectations.
How Well Does SULZF Make Money?
Net Profit Margin
For every $100 in sales, Sulzer Ltd keeps $7.63 as profit after all expenses.
Operating Margin
Core operations generate 11.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.16 in profit for every $100 of shareholder equity.
ROA
Sulzer Ltd generates $6.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sulzer Ltd generates limited operating cash flow of $302.39M, signaling weaker underlying cash strength.
Free Cash Flow
Sulzer Ltd produces free cash flow of $211.75M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.28 in free cash annually.
FCF Yield
SULZF converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How SULZF Stacks Against Its Sector Peers
| Metric | SULZF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.27 | 26.49 | Better (Cheaper) |
| ROE | 23.16% | 1307.00% | Weak |
| Net Margin | 7.63% | -5131.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.23 | 10.48 | Neutral |
| ROA | 6.06% | -1549793.00% (disorted) | Weak |
SULZF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sulzer Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.83%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
70.92%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1.79%
Industry Style: Cyclical, Value, Infrastructure
Growing