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SGS

SWX:SGSN
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGSN
SWX
CHF20B
Market Cap
  1. Home
  2. CH
  3. Commercial Services
Company description

SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. The last earnings update was 150 days ago. More info.


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SGSN Share Price and Events
7 Day Returns
-0.7%
SWX:SGSN
-0.7%
Europe Professional Services
-0.3%
CH Market
1 Year Returns
12.5%
SWX:SGSN
19.3%
Europe Professional Services
17.8%
CH Market
SGSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SGS (SGSN) -0.7% 2% 6.2% 12.5% 26.6% 27.9%
Europe Professional Services -0.7% 0.6% 2.9% 19.3% 34.6% 62.5%
CH Market -0.3% 2% 3.8% 17.8% 20.3% 15.7%
1 Year Return vs Industry and Market
  • SGSN underperformed the Professional Services industry which returned 19.3% over the past year.
  • SGSN underperformed the Market in Switzerland which returned 17.8% over the past year.
Price Volatility
SGSN
Industry
5yr Volatility vs Market

Value

 Is SGS 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 SGS 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 SGS.

SWX:SGSN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.7%
Perpetual Growth Rate 10-Year CH Government Bond Rate -0.6%

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:SGSN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate -0.6%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.836 (1 + (1- 18%) (15.06%))
0.959
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.55% + (0.959 * 5.44%)
4.67%

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

The calculations below outline how an intrinsic value for SGS 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:SGSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 4.67%)
2020 772.15 Analyst x12 737.71
2021 817.04 Analyst x10 745.78
2022 846.00 Analyst x2 737.78
2023 863.59 Est @ 2.08% 719.53
2024 874.74 Est @ 1.29% 696.32
2025 881.20 Est @ 0.74% 670.17
2026 884.30 Est @ 0.35% 642.54
2027 885.02 Est @ 0.08% 614.38
2028 884.06 Est @ -0.11% 586.35
2029 881.94 Est @ -0.24% 558.85
Present value of next 10 years cash flows CHF6,709.00
SWX:SGSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CHF881.94 × (1 + -0.55%) ÷ (4.67% – -0.55%)
CHF16,808.54
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF16,808.54 ÷ (1 + 4.67%)10
CHF10,650.91
SWX:SGSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF6,709.00 + CHF10,650.91
CHF17,359.91
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF17,359.91 / 7.57
CHF2294.54
SWX:SGSN Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF2,294.54
Current discount Discount to share price of CHF2,602.00
= -1 x (CHF2,602.00 - CHF2,294.54) / CHF2,294.54
-13.4%

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

  • The current share price of SGS 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 SGS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SGS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:SGSN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CHF CHF98.43
SWX:SGSN Share Price ** SWX (2019-12-13) in CHF CHF2602
Europe Professional Services Industry PE Ratio Median Figure of 95 Publicly-Listed Professional Services Companies 20.22x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 20.08x

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

** Primary Listing of SGS.

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

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

= 2602 ÷ 98.43

26.44x

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

  • SGS is overvalued based on earnings compared to the Europe Professional Services industry average.
  • SGS is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does SGS's expected growth come at a high price?
Raw Data
SWX:SGSN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
6.1%per year
Europe Professional Services Industry PEG Ratio Median Figure of 58 Publicly-Listed Professional Services Companies 1.42x
Switzerland Market PEG Ratio Median Figure of 125 Publicly-Listed Companies 2.18x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.44x ÷ 6.1%

4.31x

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

  • SGS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SGS's assets?
Raw Data
SWX:SGSN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CHF CHF170.57
SWX:SGSN Share Price * SWX (2019-12-13) in CHF CHF2602
Europe Professional Services Industry PB Ratio Median Figure of 125 Publicly-Listed Professional Services Companies 2.32x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.77x
SWX:SGSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2602 ÷ 170.57

15.25x

* Primary Listing of SGS.

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

  • SGS is overvalued based on assets compared to the Europe Professional Services industry average.
X
Value checks
We assess SGS'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 Professional Services 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 Professional Services industry average (and greater than 0)? (1 check)
  5. SGS has a total score of 0/6, 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 SGS expected to perform in the next 1 to 3 years based on estimates from 19 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
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SGS expected to grow at an attractive rate?
  • SGS's earnings growth is expected to exceed the low risk savings rate of -0.6%.
Growth vs Market Checks
  • SGS's earnings growth is positive but not above the Switzerland market average.
  • SGS's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:SGSN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:SGSN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 6.1%
SWX:SGSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 2.8%
Europe Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
Europe Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 10.5%
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:SGSN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:SGSN Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 7,100 1,174 755 17
2020-12-31 6,812 1,104 708 19
2019-12-31 6,702 1,011 655 19
2019-12-15
SWX:SGSN Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2019-06-30 6,741 1,099 746
2019-03-31 6,724 1,087 695
2018-12-31 6,706 1,074 643
2018-09-30 6,657 1,024 631
2018-06-30 6,608 974 619
2018-03-31 6,479 981 620
2017-12-31 6,349 987 621
2017-09-30 6,240 982 591
2017-06-30 6,131 977 561
2017-03-31 6,058 996 552
2016-12-31 5,985 1,014 543
2016-09-30 5,923 1,022 568

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SGS's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • SGS's revenue is expected to grow by 2.8% 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:SGSN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from SGS Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SGSN Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 98.44 102.47 92.66 11.00
2020-12-31 93.10 106.00 87.39 14.00
2019-12-31 84.51 99.00 65.43 14.00
2019-12-15
SWX:SGSN Past Financials Data
Date (Data in CHF Millions) EPS *
2019-06-30 98.43
2019-03-31 91.47
2018-12-31 84.53
2018-09-30 83.13
2018-06-30 81.72
2018-03-31 82.03
2017-12-31 82.35
2017-09-30 78.29
2017-06-30 74.24
2017-03-31 72.92
2016-12-31 71.61
2016-09-30 74.82

*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.
  • SGS is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess SGS'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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
SGS 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 SGS 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 SGS's growth in the last year to its industry (Professional Services).
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.
  • SGS's year on year earnings growth rate has been positive over the past 5 years.
  • SGS's 1-year earnings growth exceeds its 5-year average (20.5% vs 2.8%)
  • SGS's earnings growth has exceeded the Europe Professional Services industry average in the past year (20.5% vs 10.6%).
Earnings and Revenue History
SGS'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 SGS Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SGSN 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 6,741.00 746.00 208.00
2019-03-31 6,723.50 694.50 208.00
2018-12-31 6,706.00 643.00 208.00
2018-09-30 6,657.00 631.00 205.00
2018-06-30 6,608.00 619.00 202.00
2018-03-31 6,478.50 620.00 202.00
2017-12-31 6,349.00 621.00 202.00
2017-09-30 6,240.00 591.00 192.50
2017-06-30 6,131.00 561.00 183.00
2017-03-31 6,058.00 552.00 183.00
2016-12-31 5,985.00 543.00 183.00
2016-09-30 5,923.00 568.00 166.00
2016-06-30 5,861.00 593.00 149.00
2016-03-31 5,786.50 571.00 149.00
2015-12-31 5,712.00 549.00 149.00
2015-09-30 5,771.00 568.50 151.50
2015-06-30 5,830.00 588.00 154.00
2015-03-31 5,856.50 608.50 154.00
2014-12-31 5,883.00 629.00 154.00
2014-09-30 5,830.50 609.50 154.00
2014-06-30 5,778.00 590.00 154.00
2014-03-31 5,804.00 595.00 154.00
2013-12-31 5,830.00 600.00 154.00
2013-09-30 5,802.50 586.00 127.00
2013-06-30 5,775.00 572.00 100.00
2013-03-31 5,672.00 558.50 100.00
2012-12-31 5,569.00 545.00 100.00

*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.
  • Whilst SGS made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • SGS used its assets more efficiently than the Europe Professional Services industry average last year based on Return on Assets.
  • SGS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SGS'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 Professional Services 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.
SGS has a total score of 4/6, 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 SGS'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 SGS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SGS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SGS's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SGS'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 1.2x 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 SGS Company Filings, last reported 5 months ago.

SWX:SGSN Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,374.00 2,317.00 874.00
2019-03-31 1,374.00 2,317.00 874.00
2018-12-31 1,743.00 2,488.00 1,752.00
2018-09-30 1,743.00 2,488.00 1,752.00
2018-06-30 1,666.00 2,089.00 943.00
2018-03-31 1,666.00 2,089.00 943.00
2017-12-31 2,005.00 2,090.00 1,393.00
2017-09-30 2,005.00 2,090.00 1,393.00
2017-06-30 1,552.00 2,090.00 962.00
2017-03-31 1,552.00 2,090.00 962.00
2016-12-31 1,853.00 1,719.00 984.00
2016-09-30 1,853.00 1,719.00 984.00
2016-06-30 1,598.00 1,720.00 1,226.00
2016-03-31 1,598.00 1,720.00 1,226.00
2015-12-31 1,981.00 2,216.00 1,734.00
2015-09-30 1,981.00 2,216.00 1,734.00
2015-06-30 1,643.00 2,216.00 1,052.00
2015-03-31 1,643.00 2,216.00 1,052.00
2014-12-31 2,403.00 1,688.00 1,365.00
2014-09-30 2,403.00 1,688.00 1,365.00
2014-06-30 1,981.00 1,662.00 956.00
2014-03-31 1,981.00 1,662.00 956.00
2013-12-31 2,212.00 1,311.00 973.00
2013-09-30 2,212.00 1,311.00 973.00
2013-06-30 2,027.00 1,291.00 648.00
2013-03-31 2,027.00 1,291.00 648.00
2012-12-31 2,118.00 1,318.00 992.00
  • SGS's level of debt (168.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (83.6% vs 168.6% today).
  • Debt is well covered by operating cash flow (47.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.3x coverage).
X
Financial health checks
We assess SGS'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. SGS has a total score of 3/6, 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 SGS'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%
Current annual income from SGS dividends. Estimated to be 3.21% next year.
If you bought CHF2,000 of SGS shares you are expected to receive CHF60 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?
  • SGS's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.74%).
  • SGS's dividend is below the markets top 25% of dividend payers in Switzerland (3.54%).
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:SGSN 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 19 Analyst Estimates (S&P Global) See Below
Europe Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 76 Stocks 2.5%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.8%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.7%
Switzerland Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

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

SWX:SGSN Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 91.10 1.00
2021-12-31 87.98 18.00
2020-12-31 83.81 20.00
2019-12-31 78.72 20.00
2019-12-15
SWX:SGSN Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2019-02-19 78.000 3.104
2019-01-22 78.000 3.228
2018-02-15 75.000 3.066
2018-01-23 75.000 3.075
2017-02-13 70.000 3.061
2017-01-23 70.000 3.360
2016-03-18 68.000 3.223
2015-01-21 68.000 3.703
2014-02-04 65.000 3.126
2014-01-21 65.000 3.123
2013-01-17 58.000 2.689
2012-01-26 65.000 3.496
2012-01-17 65.000 3.924
2011-01-21 65.000 4.207
2011-01-17 65.000 4.095
2010-01-25 60.000 3.982
2010-01-15 60.000 4.344
2009-01-16 50.000 3.906
2009-01-05 50.000 4.321

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 SGS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess SGS'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 SGS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SGS has a total score of 5/6, 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 SGS'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
Frankie Ng
COMPENSATION CHF0
AGE 53
TENURE AS CEO 4.8 years
CEO Bio

Mr. Frankie Ng serves as Executive Vice President of Transportation (A.I.) at SGS SA since November 2019. Mr. Ng serves as Chief Operating Officer at SGS SA since July 2019. Mr. Frankie Ng has been the Chief Executive Officer of SGS SA since March 12, 2015. Mr. Ng has been the Chief Executive Officer at SGS Korea Co., Ltd. since March 12, 2015. Mr. Ng served as an Executive Vice President of Industrial Services at SGS Korea Co., Ltd. and SGS North America Inc. since January 2012. Mr. Ng served as an Executive Vice President of Industrial Services at SGS SA from January 2012 to March 12, 2015. He served as an Executive Vice President of Consumer Testing Services of SGS SA since 2004 until March 12, 2015. Mr. Ng joined SGS in 1994 in Hong Kong. He served as Managing Director U.S Testing and Operations Manager China & Hong. He served as Division Manager for SGS-CSTC Standards Technical Services. He worked briefly with Sodeco S.A. as a Quality Assurance Engineer. In 2000, he was appointed Managing Director of SGS US Consumer Testing Services. He served as Member of Operations Council at SGS SA. Mr. Ng holds diploma in Engineering from the Engineering School of Geneva and a BA in Economics and Econometrics from the University of Essex, England.

CEO Compensation
  • Frankie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Frankie's remuneration is lower than average for companies of similar size in Switzerland.
Management Team Tenure

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

3.3
Average Tenure
59.5
Average Age
  • The tenure for the SGS management team is about average.
Management Team

Frankie Ng

TITLE
CEO, COO & Executive VP of Transportation (A.I.)
AGE
53
TENURE
4.8 yrs

Olivier Merkt

TITLE
General Counsel & Chief Compliance Officer
AGE
57

Dominik de Daniel

TITLE
Chief Financial Officer
AGE
44
TENURE
0.8 yrs

Christoph Heidler

TITLE
Chief Information Officer
TENURE
0.9 yrs

Jean-Luc de Buman

TITLE
Senior Vice President of Corporate Development
AGE
66

José Hernández-Sampelayo

TITLE
Senior Vice President of Human Resources
AGE
58
TENURE
2.4 yrs

Dirk Hellemans

TITLE
Chief Operating Officer of North & Central Europe
AGE
61
TENURE
4.1 yrs

Ewald van der Helm

TITLE
Global Head of Internal Audit & Senior VP

Dennis Yang

TITLE
Chief Operating Officer of Eastern Asia
AGE
70

Fred Herren

TITLE
Senior Vice President of Digital & Innovation
AGE
64
TENURE
16.9 yrs
Board of Directors Tenure

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

6.4
Average Tenure
58.5
Average Age
  • The tenure for the SGS board of directors is about average.
Board of Directors

Peter Kalantzis

TITLE
Chairman of the Board
COMPENSATION
CHF259K
AGE
74
TENURE
1.4 yrs

Shelby du Pasquier

TITLE
Director
COMPENSATION
CHF210K
AGE
59
TENURE
13.8 yrs

August von Finck

TITLE
Director
COMPENSATION
CHF180K
AGE
51
TENURE
17.6 yrs

Cornelius Grupp

TITLE
Director
COMPENSATION
CHF180K
AGE
72
TENURE
8.8 yrs

Paul Desmarais

TITLE
Director
COMPENSATION
CHF150K
AGE
65
TENURE
6.4 yrs

Ian Gallienne

TITLE
Director
COMPENSATION
CHF180K
AGE
48
TENURE
6.4 yrs

Gérard Lamarche

TITLE
Director
COMPENSATION
CHF180K
AGE
58
TENURE
6.4 yrs

Kory Sorenson

TITLE
Director
AGE
51
TENURE
0.8 yrs

Calvin Grieder

TITLE
Director
AGE
64
TENURE
0.9 yrs

Luitpold von Finck

TITLE
Director
AGE
48
TENURE
0.9 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 SGS'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. SGS 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

Why SGS SA's (VTX:SGSN) High P/E Ratio Isn't Necessarily A Bad Thing

Check out our latest analysis for SGS How Do I Calculate SGS's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for SGS: P/E of 24.04 = CHF2366 ÷ CHF98.43 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does SGS's P/E Ratio Compare To Its Peers?

Simply Wall St -

Do Institutions Own SGS SA (VTX:SGSN) Shares?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … General Public Ownership The general public, with a 41% stake in the company, will not easily be ignored. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.

Simply Wall St -

A Holistic Look At SGS SA (VTX:SGSN)

Established dividend payer with proven track record In the previous year, SGSN has ramped up its bottom line by 21%, with its latest earnings level surpassing its average level over the last five years. … SWX:SGSN Income Statement, August 5th 2019 Income investors would also be happy to know that SGSN is a great dividend company, with a current yield standing at 3.2%. … SWX:SGSN Historical Dividend Yield, August 5th 2019 Next Steps: For SGS, I've put together three fundamental aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for SGSN’s future growth?

Simply Wall St -

With EPS Growth And More, SGS (VTX:SGSN) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … Although SGS certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Why SGS SA (VTX:SGSN) Looks Like A Quality Company

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for SGS: 40% = CHF643m ÷ CHF1.7b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

SGS (VTX:SGSN) Has A Pretty Healthy Balance Sheet

We note that SGS SA (VTX:SGSN) does have debt on its balance sheet. … Because it carries more debt than cash, we think it's worth watching SGS's balance sheet over time. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Why You Should Like SGS SA’s (VTX:SGSN) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for SGS: 0.23 = CHF946m ÷ (CHF6.1b - CHF2.0b) (Based on the trailing twelve months to December 2018.) So, SGS has an ROCE of 23%.

Simply Wall St -

Are Dividend Investors Getting More Than They Bargained For With SGS SA's (VTX:SGSN) Dividend?

Today we'll take a closer look at SGS SA (VTX:SGSN) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. In this case, SGS likely looks attractive to dividend investors, given its 3.1% dividend yield and nine-year payment history. We'd agree the yield does look enticing. Some simple research can reduce the risk of buying SGS for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on SGS! SWX:SGSN Historical Dividend Yield, May 30th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, SGS paid out 92% of its profit as dividends. With a payout ratio this high, we'd say its dividend is not well covered by earnings. This may be fine if earnings are growing, but it might not take much of a downturn for the dividend to come under pressure. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. SGS paid out 74% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. It's good to see that while SGS's dividends were not well covered by profits, at least they are affordable from a free cash flow perspective. Even so, if the company were to continue paying out almost all of its profits, we'd be concerned about whether the dividend is sustainable in a downturn. Is SGS's Balance Sheet Risky? As SGS's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … This level of earnings growth is low, and the company is paying out 92% of its profit. … Limited recent earnings growth and a high payout ratio makes it hard for us to envision strong future dividend growth, unless the company should have substantial pricing power or some form of competitive advantage.

Simply Wall St -

Does SGS's (VTX:SGSN) Share Price Gain of 22% Match Its Business Performance?

For example, SGS SA (VTX:SGSN) shareholders have seen the share price rise 22% over three years, well in excess of the market return (13%, not including dividends). … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.

Simply Wall St -

SGS SA (VTX:SGSN): Immense Growth Potential?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … the past 5-year average growth rate of 0.7%.

Simply Wall St -

Company Info

Description

SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in nine segments: Agriculture, Food and Life; Mineral Services; Oil, Gas and Chemicals Services; Consumer and Retail Services; Certification and Business Enhancement; Industrial Services; Environment, Health and Safety Services; Transportation Services; and Governments and Institutions Services. The company offers inspection services to reduce risk, control quality and quantity, and meet relevant regulatory requirements in various regions and markets; and product testing services. It also provides verification services; certification services that enable its customers to demonstrate that their products, processes, systems, and services are compliant with national and international regulations and standards; workforce training services; and consultancy, outsourcing, and data analytics services. The company serves the agriculture and food, chemical, construction, consumer goods and retail, energy, environment, health and safety, industrial manufacturing, life sciences, logistics, mining, oil and gas, public, risk management, sustainability, trade, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.

Details
Name: SGS SA
SGSN
Exchange: SWX
Founded: 1878
CHF19,686,034,664
7,565,732
Website: http://www.sgs.com
Address: SGS SA
1 Place Des Alpes,
PO Box 2152,
Geneva,
Geneva, 1211,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX SGSN Registered Shares SIX Swiss Exchange CH CHF 13. Jul 1992
OTCPK SGSO.F Registered Shares Pink Sheets LLC US USD 13. Jul 1992
DB SUVN Registered Shares Deutsche Boerse AG DE EUR 13. Jul 1992
LSE 0QMI Registered Shares London Stock Exchange GB CHF 13. Jul 1992
OTCPK SGSO.Y UNSPONSORED ADR Pink Sheets LLC US USD 27. Aug 2004
SWX SGSNE CHF1 (REGD)(2ND BUY BACK) SIX Swiss Exchange CH CHF 15. May 2017
Number of employees
Current staff
Staff numbers
96,140
SGS employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/15 20:43
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2019/12/13
Last earnings filing: 2019/07/18
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.