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Sulzer

SWX:SUN
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SUN
SWX
CHF4B
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

Sulzer Ltd provides products and services for the oil and gas, power, water, and other markets in Switzerland and internationally. The last earnings update was 117 days ago. More info.


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SUN Share Price and Events
7 Day Returns
-1.3%
SWX:SUN
-0.3%
CH Machinery
-0%
CH Market
1 Year Returns
13.3%
SWX:SUN
14.4%
CH Machinery
13.3%
CH Market
SUN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sulzer (SUN) -1.3% 8.3% 17.2% 13.3% 6% -6.4%
CH Machinery -0.3% 7.6% 15.7% 14.4% 26.5% 41.5%
CH Market -0% 3.2% 4.8% 13.3% 21.9% 13%
1 Year Return vs Industry and Market
  • SUN underperformed the Machinery industry which returned 14.4% over the past year.
  • SUN matched the Switzerland Market (13.3%) over the past year.
Price Volatility
SUN
Industry
5yr Volatility vs Market

Value

 Is Sulzer undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sulzer to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sulzer.

SWX:SUN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:SUN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.078 (1 + (1- 18%) (39.98%))
1.289
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.289 * 5.96%)
10.96%

Discounted Cash Flow Calculation for SWX:SUN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sulzer is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:SUN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 10.96%)
2020 243.97 Analyst x3 219.87
2021 273.00 Analyst x3 221.73
2022 269.00 Analyst x1 196.91
2023 288.00 Analyst x1 189.99
2024 300.45 Est @ 4.32% 178.63
2025 312.50 Est @ 4.01% 167.44
2026 324.34 Est @ 3.79% 156.62
2027 336.13 Est @ 3.63% 146.28
2028 347.99 Est @ 3.53% 136.48
2029 360.00 Est @ 3.45% 127.25
Present value of next 10 years cash flows CHF1,741.00
SWX:SUN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CHF360.00 × (1 + 3.28%) ÷ (10.96% – 3.28%)
CHF4,838.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF4,838.10 ÷ (1 + 10.96%)10
CHF1,710.12
SWX:SUN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF1,741.00 + CHF1,710.12
CHF3,451.12
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF3,451.12 / 34.06
CHF101.34
SWX:SUN Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF101.34
Current discount Discount to share price of CHF105.80
= -1 x (CHF105.80 - CHF101.34) / CHF101.34
-4.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sulzer is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sulzer's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sulzer's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:SUN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CHF CHF3.68
SWX:SUN Share Price ** SWX (2019-11-15) in CHF CHF105.8
Switzerland Machinery Industry PE Ratio Median Figure of 25 Publicly-Listed Machinery Companies 23.34x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sulzer.

SWX:SUN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:SUN Share Price ÷ EPS (both in CHF)

= 105.8 ÷ 3.68

28.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sulzer is overvalued based on earnings compared to the CH Machinery industry average.
  • Sulzer is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Sulzer's expected growth come at a high price?
Raw Data
SWX:SUN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
19.6%per year
Switzerland Machinery Industry PEG Ratio Median Figure of 23 Publicly-Listed Machinery Companies 1.18x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.17x

*Line of best fit is calculated by linear regression .

SWX:SUN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.78x ÷ 19.6%

1.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sulzer is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sulzer's assets?
Raw Data
SWX:SUN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CHF CHF45.96
SWX:SUN Share Price * SWX (2019-11-15) in CHF CHF105.8
Switzerland Machinery Industry PB Ratio Median Figure of 25 Publicly-Listed Machinery Companies 2.3x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.66x
SWX:SUN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:SUN Share Price ÷ Book Value per Share (both in CHF)

= 105.8 ÷ 45.96

2.3x

* Primary Listing of Sulzer.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sulzer is good value based on assets compared to the CH Machinery industry average.
X
Value checks
We assess Sulzer's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Sulzer has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sulzer expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sulzer expected to grow at an attractive rate?
  • Sulzer's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Sulzer's earnings growth is expected to exceed the Switzerland market average.
  • Sulzer's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:SUN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:SUN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 19.6%
SWX:SUN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.4%
Switzerland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
Switzerland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:SUN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:SUN Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,841 1
2022-12-31 4,267 1
2021-12-31 3,976 384 251 8
2020-12-31 3,855 359 235 8
2019-12-31 3,636 297 182 8
2019-11-18
SWX:SUN Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2019-06-30 3,547 301 121
2019-03-31 3,456 281 117
2018-12-31 3,365 261 114
2018-09-30 3,282 219 106
2018-06-30 3,212 177 104
2018-03-31 3,130 180 94
2017-12-31 3,049 184 83
2017-09-30 2,987 210 64
2017-06-30 2,924 236 46
2017-03-31 2,901 250 52
2016-12-31 2,877 263 59
2016-09-30 2,918 229 78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sulzer's earnings are expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).
  • Sulzer's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:SUN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Sulzer Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SUN Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 7.35 8.36 6.42 8.00
2020-12-31 6.88 7.52 5.94 8.00
2019-12-31 5.31 5.70 4.77 8.00
2019-11-18
SWX:SUN Past Financials Data
Date (Data in CHF Millions) EPS *
2019-06-30 3.68
2019-03-31 3.62
2018-12-31 3.56
2018-09-30 3.26
2018-06-30 3.16
2018-03-31 2.79
2017-12-31 2.44
2017-09-30 1.89
2017-06-30 1.33
2017-03-31 1.53
2016-12-31 1.73
2016-09-30 2.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sulzer is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sulzer's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sulzer has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sulzer performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sulzer's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sulzer has delivered over 20% year on year earnings growth in the past 5 years.
  • Sulzer's 1-year earnings growth is less than its 5-year average (16% vs 38.2%)
  • Sulzer's earnings growth has exceeded the CH Machinery industry average in the past year (16% vs 2.7%).
Earnings and Revenue History
Sulzer's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sulzer Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SUN Past Revenue, Cash Flow and Net Income Data
Date (Data in CHF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 3,547.30 120.90 762.00 87.10
2019-03-31 3,456.10 117.30 752.85 86.75
2018-12-31 3,364.90 113.70 743.70 86.40
2018-09-30 3,282.00 105.75 737.55 85.40
2018-06-30 3,211.90 104.20 731.40 84.40
2018-03-31 3,130.45 93.70 719.15 82.70
2017-12-31 3,049.00 83.20 706.90 81.00
2017-09-30 2,986.65 64.35 685.30 78.95
2017-06-30 2,924.30 45.50 663.70 76.90
2017-03-31 2,900.50 52.25 652.15 74.15
2016-12-31 2,876.70 59.00 640.60 71.40
2016-09-30 2,917.70 78.25 650.20 71.65
2016-06-30 2,958.70 97.50 659.80 71.90
2016-03-31 2,964.85 85.70 659.35 72.65
2015-12-31 2,971.00 73.90 658.90 73.40
2015-09-30 3,042.30 -61.65 661.95 73.05
2015-06-30 3,113.60 -197.20 665.00 72.70
2015-03-31 3,162.85 -178.95 667.35 74.45
2014-12-31 3,212.10 -160.70 669.70 76.20
2014-09-30 3,208.05 2.20 667.80 75.05
2014-06-30 3,204.00 165.10 665.90 73.90
2014-03-31 3,233.95 169.80 674.55 72.25
2013-12-31 3,263.90 174.50 683.20 70.60
2013-06-30 2,969.60 187.70 630.40 58.80
2013-03-31 3,155.15 216.05 643.75 62.85
2012-12-31 3,340.70 244.40 657.10 66.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sulzer has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sulzer used its assets less efficiently than the CH Machinery industry average last year based on Return on Assets.
  • Sulzer's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sulzer's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sulzer has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sulzer's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sulzer's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sulzer is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sulzer's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sulzer's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sulzer Company Filings, last reported 4 months ago.

SWX:SUN Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,576.90 1,317.10 938.60
2019-03-31 1,576.90 1,317.10 938.60
2018-12-31 1,641.10 1,334.70 1,095.20
2018-09-30 1,641.10 1,334.70 1,095.20
2018-06-30 1,047.10 881.00 359.10
2018-03-31 1,047.10 881.00 359.10
2017-12-31 1,702.40 713.80 488.80
2017-09-30 1,702.40 713.80 488.80
2017-06-30 1,496.10 599.10 327.90
2017-03-31 1,496.10 599.10 327.90
2016-12-31 1,591.00 465.40 429.50
2016-09-30 1,591.00 465.40 429.50
2016-06-30 1,553.40 510.90 571.20
2016-03-31 1,553.40 510.90 571.20
2015-12-31 2,234.20 520.60 1,217.30
2015-09-30 2,234.20 520.60 1,217.30
2015-06-30 2,181.10 529.60 1,107.90
2015-03-31 2,181.10 529.60 1,107.90
2014-12-31 2,442.00 527.20 1,301.50
2014-09-30 2,442.00 527.20 1,301.50
2014-06-30 2,743.80 549.60 1,290.30
2014-03-31 2,743.80 549.60 1,290.30
2013-12-31 2,340.70 571.40 528.70
2013-06-30 2,250.80 629.80 453.50
2013-03-31 2,250.80 629.80 453.50
2012-12-31 2,223.40 606.60 513.10
  • Sulzer's level of debt (83.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20% vs 83.5% today).
  • Debt is well covered by operating cash flow (22.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.1x coverage).
X
Financial health checks
We assess Sulzer's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sulzer has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Sulzer's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.31%
Current annual income from Sulzer dividends. Estimated to be 3.52% next year.
If you bought CHF2,000 of Sulzer shares you are expected to receive CHF66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sulzer's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.85%).
  • Sulzer's dividend is below the markets top 25% of dividend payers in Switzerland (3.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:SUN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Switzerland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.2%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:SUN Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.86 8.00
2020-12-31 3.76 8.00
2019-12-31 3.55 8.00
2019-11-18
SWX:SUN Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2019-02-15 3.500 3.518
2018-02-27 3.500 3.250
2017-03-01 3.500 3.041
2016-04-05 3.500 3.623
2015-04-02 3.500 3.546
2014-02-20 3.200 2.753
2013-03-27 3.200 2.206
2012-08-13 3.000 2.090
2012-02-23 3.000 2.464
2011-02-24 3.000 2.584
2011-02-18 3.000 2.170
2010-02-25 2.800 2.478
2009-02-26 2.800 3.795

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sulzer's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Sulzer's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sulzer afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sulzer has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sulzer's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Poux-Guillaume
COMPENSATION CHF5,846,000
AGE 49
TENURE AS CEO 3.9 years
CEO Bio

Mr. Grégoire Poux-Guillaume, also known as Greg, has been the Chief Executive Officer at Sulzer, Ltd., since December 1, 2015 and was its Ad Interim Chief Financial Officer until 2018. Mr. Poux-Guillaume served as the President of Grid Sector at Alstom SA from 2012 to 2015 and also served as its Executive Vice President. Previously, from 2009 to 2011, he served as Senior Managing Director of CVC Capital Partners Ltd. He joined CVC in 2009 and was based in France. Previously, he worked for Alstom, where he served as the Head of Strategy during the turnaround phase before becoming the Chief Executive Officer of their €1 billion environmental control systems business. Prior to this, he was active in mid-market private equity transactions and worked for McKinsey and Total. He served as President and Chief Executive Officer of Alstom Grid from 2011 to 2015. Prior to this, he held various positions with Alstom Group from 2003 to 2008 including its Executive Vice President. From 2000 to 2002, he led transactions for Softbank (Technology Venture Capital) and for the Halley family (Carrefour). He was with McKinsey & Company from 1999 to 2000 after having held various positions with Total Exploration & Production from 1993 to 1997. He was a Director of Delachaux Group SA. Mr. Poux-Guillaume holds Bachelor and Master of Science degrees in Mechanical Engineering, Ecole Centrale Paris, France and also an M.B.A. from Harvard University.

CEO Compensation
  • Greg's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Greg's remuneration is higher than average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Sulzer management team in years:

3.9
Average Tenure
54
Average Age
  • The tenure for the Sulzer management team is about average.
Management Team

Greg Poux-Guillaume

TITLE
Chief Executive Officer
COMPENSATION
CHF6M
AGE
49
TENURE
3.9 yrs

Jill Lee

TITLE
Chief Financial Officer
COMPENSATION
CHF36K
AGE
56
TENURE
1.6 yrs

Christoph Ladner

TITLE
Head of Group Communications and Investor Relations
TENURE
5.4 yrs

Armand Sohet

TITLE
Chief Human Resources Officer
AGE
54
TENURE
3.7 yrs

Philipp Süess

TITLE
Head of Europe & America - Sulzer Chemtech

Urs Probst

TITLE
Head of Europe - Markets & Technology

Walter Herter

TITLE
Head of Asia Pacific - Markets & Technology

Bruno Gerig

TITLE
Head of Human Resources - Sulzer Metco

Keith Dowle

TITLE
Head of Europe & Middle East Operations - Sulzer Pumps

Richard Müller

TITLE
Head of Finance & Controlling - Sulzer Turbo Services
TENURE
14.1 yrs
Board of Directors Tenure

Average tenure and age of the Sulzer board of directors in years:

4.6
Average Tenure
62
Average Age
  • The tenure for the Sulzer board of directors is about average.
Board of Directors

Peter Löscher

TITLE
Chairman
COMPENSATION
CHF765K
AGE
62
TENURE
5.7 yrs

Matthias Bichsel

TITLE
Vice Chairman
COMPENSATION
CHF321K
AGE
65
TENURE
4.6 yrs

Gerhard Roiss

TITLE
Independent Director
COMPENSATION
CHF273K
AGE
67
TENURE
4.6 yrs

Hanne Birgitte Breinbjerg Sørensen

TITLE
Independent Director
COMPENSATION
CHF260K
AGE
54
TENURE
1.6 yrs

Marco Musetti

TITLE
Independent Director
COMPENSATION
CHF270K
AGE
50
TENURE
8.6 yrs

Mikhail Lifshitz

TITLE
Independent Director
COMPENSATION
CHF254K
AGE
56
TENURE
3.6 yrs

Lukas Braunschweiler

TITLE
Independent Director
COMPENSATION
CHF226K
AGE
63
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Sulzer's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sulzer has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Sulzer Ltd's (VTX:SUN) CEO Salary Justified?

Check out our latest analysis for Sulzer How Does Greg Poux-Guillaume's Compensation Compare With Similar Sized Companies? … It would therefore appear that Sulzer Ltd pays Greg Poux-Guillaume more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at Sulzer Ltd with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Does Sulzer (VTX:SUN) Have A Healthy Balance Sheet?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … SWX:SUN Historical Debt, August 24th 2019 How Strong Is Sulzer's Balance Sheet? … Sulzer has a market capitalization of CHF3.09b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose.

Simply Wall St -

One Thing To Remember About The Sulzer Ltd (VTX:SUN) Share Price

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … View our latest analysis for Sulzer What we can learn from SUN's beta value Given that it has a beta of 1.28, we can surmise that the Sulzer share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

Don't Sell Sulzer Ltd (VTX:SUN) Before You Read This

View our latest analysis for Sulzer How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Sulzer: P/E of 27.51 = CHF101.1 ÷ CHF3.68 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … The image below shows that Sulzer has a higher P/E than the average (19) P/E for companies in the machinery industry.

Simply Wall St -

What Do Analysts Think About Sulzer Ltd's (VTX:SUN) Future?

Overall, the consensus outlook from analysts appear highly confident, with profits predicted to ramp up by an impressive 72% next year, relative to the past 5-year average growth rate of 15%. … To understand the overall trajectory of SUN's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … SWX:SUN Past and Future Earnings, July 23rd 2019 From the current net income level of CHF114m and the final forecast of CHF249m by 2022, the annual rate of growth for SUN’s earnings is 23%.

Simply Wall St -

What Kind Of Investor Owns Most Of Sulzer Ltd (VTX:SUN)?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Check out our latest analysis for Sulzer SWX:SUN Ownership Summary, July 19th 2019 What Does The Institutional Ownership Tell Us About Sulzer? … As you can see, institutional investors own 18% of Sulzer.

Simply Wall St -

Is Sulzer Ltd (VTX:SUN) A Great Dividend Stock?

Is Sulzer Ltd (VTX:SUN) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A high yield and a long history of paying dividends is an appealing combination for Sulzer. We'd guess that plenty of investors have purchased it for the income. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. It's not great to see that Sulzer's have fallen at approximately 7.1% over the past five years. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. We'd also point out that Sulzer issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … In sum, we find it hard to get excited about Sulzer from a dividend perspective.

Simply Wall St -

What Should You Know About Sulzer Ltd's (VTX:SUN) Future?

Today I want to provide a brief commentary on how market analysts view Sulzer's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Sulzer Analysts' outlook for next year seems positive, with earnings increasing by a significant 73%. … SWX:SUN Past and Future Earnings, June 28th 2019 Even though it’s helpful to understand the growth rate each year relative to today’s level, it may be more beneficial to analyze the rate at which the business is moving every year, on average.

Simply Wall St -

What Should Investors Know About Sulzer Ltd's (VTX:SUN) Growth?

Below, I've laid out key growth figures on how market analysts predict Sulzer's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … See our latest analysis for Sulzer Market analysts' consensus outlook for next year seems positive, with earnings rising by a significant 73%. … SWX:SUN Past and Future Earnings, June 28th 2019 While it is useful to understand the rate of growth year by year relative to today’s figure, it may be more beneficial analyzing the rate at which the earnings are rising or falling on average every year.

Simply Wall St -

If You Like EPS Growth Then Check Out Sulzer (VTX:SUN) Before It's Too Late

In contrast to all that, I prefer to spend time on companies like Sulzer (VTX:SUN), which has not only revenues, but also profits. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … For growth investors like me, Sulzer's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

Company Info

Description

Sulzer Ltd provides products and services for the oil and gas, power, water, and other markets in Switzerland and internationally. The company operates through Pumps Equipment, Rotating Equipment Services, Chemtech, and Applicator Systems divisions. It offers side-mounted horizontal and top-mounted vertical agitators, dynamic chemical mixers, and tower and tank flow management products; tower management systems; turbo compressors, aeration systems, and mechanical aerators; cartridges, mixers, dispensers, and accessories; process solutions; medium consistency products; pumping solutions and auxiliary equipment; and control and monitoring equipment. The company also provides lifting stations; pump and lifting station accessories; products for distillation, absorption, stripping, evaporation, phase separation, liquid-liquid extraction, crystallization, and membrane separation; static mixers; submersible mixers; lube oil systems; and solids reduction, separation, and removal systems. In addition, it offers rotating equipment services; mass transfer equipment, welding, plant maintenance, and turnaround project services; feasibility and debottlenecking studies, process validations, and basic engineering services; packaging solutions for beauty products; spare parts; testing services; training services; and services for water, wastewater, and dewatering products, as well as operates services centers for rotating equipment. Sulzer Ltd was founded in 1834 and is headquartered in Winterthur, Switzerland.

Details
Name: Sulzer Ltd
SUN
Exchange: SWX
Founded: 1834
CHF3,562,296,406
34,056,371
Website: http://www.sulzer.com
Address: Sulzer Ltd
Neuwiesenstrasse 15,
Winterthur,
Zurich, 8401,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX SUN Registered Shares SIX Swiss Exchange CH CHF 02. Jan 1992
OTCPK SULZ.F Registered Shares Pink Sheets LLC US USD 02. Jan 1992
DB SUL1 Registered Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0QQ9 Registered Shares London Stock Exchange GB CHF 02. Jan 1992
Number of employees
Current staff
Staff numbers
16,289
Sulzer employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 20:38
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/15
Last earnings filing: 2019/07/24
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.