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Sika

SWX:SIKA
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SIKA
SWX
CHF22B
Market Cap
  1. Home
  2. CH
  3. Materials
Company description

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The last earnings update was 41 days ago. More info.


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  • Sika has significant price volatility in the past 3 months.
SIKA Share Price and Events
7 Day Returns
-1.7%
SWX:SIKA
-0.8%
CH Chemicals
1.4%
CH Market
1 Year Returns
5.8%
SWX:SIKA
6.2%
CH Chemicals
-5.2%
CH Market
SIKA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sika (SIKA) -1.7% -14.5% -15.7% 5.8% - -
CH Chemicals -0.8% -10.3% -10.8% 6.2% 24.5% 38.9%
CH Market 1.4% -9% -13.7% -5.2% 3.7% -2.6%
1 Year Return vs Industry and Market
  • SIKA matched the Chemicals industry (6.2%) over the past year.
  • SIKA outperformed the Market in Switzerland which returned -5.2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

SIKA Value

 Is Sika 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 Sika 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 Sika.

SWX:SIKA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 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:SIKA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate -0.6%
Equity Risk Premium S&P Global 5.4%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.807 (1 + (1- 18%) (20.16%))
0.96
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% + (0.96 * 5.44%)
4.67%

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

The calculations below outline how an intrinsic value for Sika 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:SIKA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 4.67%)
2020 903.93 Analyst x6 863.59
2021 1,057.00 Analyst x6 964.75
2022 1,213.49 Analyst x3 1,058.15
2023 1,278.70 Est @ 5.37% 1,065.25
2024 1,324.68 Est @ 3.6% 1,054.31
2025 1,355.85 Est @ 2.35% 1,030.95
2026 1,375.94 Est @ 1.48% 999.54
2027 1,387.94 Est @ 0.87% 963.26
2028 1,394.13 Est @ 0.45% 924.37
2029 1,396.17 Est @ 0.15% 884.41
Present value of next 10 years cash flows CHF9,808.00
SWX:SIKA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CHF1,396.17 × (1 + -0.55%) ÷ (4.67% – -0.55%)
CHF26,591.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF26,591.67 ÷ (1 + 4.67%)10
CHF16,844.54
SWX:SIKA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF9,808.00 + CHF16,844.54
CHF26,652.54
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF26,652.54 / 141.74
CHF188.04
SWX:SIKA Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF188.04
Current discount Discount to share price of CHF154.20
= -1 x (CHF154.20 - CHF188.04) / CHF188.04
18%

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

Current Discount
Amount off the current price Sika is available for.
Intrinsic value
18%
Share price is CHF154.2 vs Future cash flow value of CHF188.04
Current Discount Checks
For Sika to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sika's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Sika's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Sika's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sika's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:SIKA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CHF CHF5.30
SWX:SIKA Share Price ** SWX (2020-04-03) in CHF CHF154.2
Switzerland Chemicals Industry PE Ratio Median Figure of 5 Publicly-Listed Chemicals Companies 26.13x
Switzerland Market PE Ratio Median Figure of 175 Publicly-Listed Companies 16.43x

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

** Primary Listing of Sika.

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

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

= 154.2 ÷ 5.30

29.07x

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

  • Sika is overvalued based on earnings compared to the CH Chemicals industry average.
  • Sika is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Sika's expected growth come at a high price?
Raw Data
SWX:SIKA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
11%per year
Europe Chemicals Industry PEG Ratio Median Figure of 59 Publicly-Listed Chemicals Companies 1.2x
Switzerland Market PEG Ratio Median Figure of 125 Publicly-Listed Companies 1.81x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.07x ÷ 11%

2.65x

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

  • Sika is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sika's assets?
Raw Data
SWX:SIKA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CHF CHF22.04
SWX:SIKA Share Price * SWX (2020-04-03) in CHF CHF154.2
Switzerland Chemicals Industry PB Ratio Median Figure of 7 Publicly-Listed Chemicals Companies 3.67x
Switzerland Market PB Ratio Median Figure of 216 Publicly-Listed Companies 1.33x
SWX:SIKA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 154.2 ÷ 22.04

7x

* Primary Listing of Sika.

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

  • Sika is overvalued based on assets compared to the CH Chemicals industry average.
X
Value checks
We assess Sika'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 Chemicals 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 Chemicals industry average (and greater than 0)? (1 check)
  5. Sika 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.

SIKA Future Performance

 How is Sika expected to perform in the next 1 to 3 years based on estimates from 10 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
11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sika expected to grow at an attractive rate?
  • Sika's earnings growth is expected to exceed the low risk savings rate of -0.6%.
Growth vs Market Checks
  • Sika's earnings growth is expected to exceed the Switzerland market average.
  • Sika's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:SIKA Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:SIKA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 11%
SWX:SIKA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 6.1%
Switzerland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
Switzerland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 8.3%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 2.2%

*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:SIKA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:SIKA Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 11,567 2
2023-12-31 10,351 1,723 1,184 3
2022-12-31 9,506 1,512 1,054 7
2021-12-31 9,242 1,361 988 10
2020-12-31 8,686 1,184 856 10
2020-04-04
SWX:SIKA Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2019-12-31 8,109 1,214 752
2019-09-30 7,728 1,031 723
2019-06-30 7,348 848 694
2019-03-31 7,217 796 689
2018-12-31 7,085 744 683
2018-09-30 6,904 715 680
2018-06-30 6,724 686 677
2018-03-31 6,486 669 660
2017-12-31 6,248 652 644
2017-09-30 6,038 611
2017-06-30 5,936 687 603
2017-03-31 5,842 712 583

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sika's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • Sika's revenue is expected to grow by 6.1% 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:SIKA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Sika Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SIKA Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 7.59 8.90 6.28 2.00
2022-12-31 7.38 8.39 5.90 5.00
2021-12-31 6.82 8.00 5.65 9.00
2020-12-31 5.92 6.79 4.98 9.00
2020-04-04
SWX:SIKA Past Financials Data
Date (Data in CHF Millions) EPS *
2019-12-31 5.30
2019-09-30 5.10
2019-06-30 4.90
2019-03-31 4.79
2018-12-31 4.69
2018-09-30 4.59
2018-06-30 4.49
2018-03-31 4.36
2017-12-31 4.23
2017-09-30 4.01
2017-06-30 3.96
2017-03-31 3.83

*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.
  • Sika is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sika'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.
Sika has a total score of 4/6, 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.

SIKA Past Performance

  How has Sika 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 Sika's growth in the last year to its industry (Chemicals).
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.
  • Sika's year on year earnings growth rate has been positive over the past 5 years.
  • Sika's 1-year earnings growth is less than its 5-year average (10.1% vs 11.1%)
  • Sika's earnings growth has not exceeded the CH Chemicals industry average in the past year (10.1% vs 10.1%).
Earnings and Revenue History
Sika'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 Sika Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:SIKA Past Revenue, Cash Flow and Net Income Data
Date (Data in CHF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,109.20 751.90 1,578.20
2019-09-30 7,728.45 723.05 1,489.45
2019-06-30 7,347.70 694.20 1,513.70
2019-03-31 7,216.55 688.55 1,486.05
2018-12-31 7,085.40 682.90 1,345.40
2018-09-30 6,904.45 679.75 1,368.10
2018-06-30 6,723.50 676.60 1,390.80
2018-03-31 6,485.90 660.05 1,357.65
2017-12-31 6,248.30 643.50 1,324.50
2017-09-30 6,037.50 610.90 2,230.40
2017-06-30 5,936.40 602.80 1,288.50
2017-03-31 5,842.05 582.95 1,276.15
2016-12-31 5,747.70 563.10 1,263.80
2016-09-30 5,726.00 537.60 1,106.50
2016-06-30 5,670.20 509.50 1,137.70
2016-03-31 5,579.70 484.90 1,122.10
2015-12-31 5,489.20 460.30 1,106.50
2015-09-30 5,491.90 467.00 1,093.70
2015-06-30 5,539.60 457.30 1,095.90
2015-03-31 5,555.45 448.15 1,094.80
2014-12-31 5,571.30 439.00 1,093.70
2014-09-30 5,508.90 397.00 1,072.60
2014-06-30 5,396.60 379.00 1,058.30
2014-03-31 5,269.40 360.60 1,044.70
2013-12-31 5,142.20 342.20 1,031.10
2013-09-30 5,000.40 312.50 1,048.40
2013-06-30 4,920.70 292.20 1,047.70

*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 Sika has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Sika used its assets more efficiently than the CH Chemicals industry average last year based on Return on Assets.
  • Sika's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sika'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 Chemicals 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.
Sika 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.

SIKA Health

 How is Sika'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 Sika's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sika is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sika's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sika'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 not covered by short term assets, assets are 0.9x 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 Sika Company Filings, last reported 3 months ago.

SWX:SIKA Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,161.20 4,076.10 997.60
2019-09-30 3,161.20 4,076.10 997.60
2019-06-30 2,835.40 4,471.90 627.80
2019-03-31 2,835.40 4,471.90 627.80
2018-12-31 1,675.20 3,029.90 916.10
2018-09-30 1,675.20 3,029.90 916.10
2018-06-30 1,386.30 3,080.20 579.50
2018-03-31 1,386.30 3,080.20 579.50
2017-12-31 3,411.10 749.90 1,040.10
2017-09-30 3,411.10 749.90 1,040.10
2017-06-30 2,972.90 698.90 819.10
2017-03-31 2,972.90 698.90 819.10
2016-12-31 2,947.70 718.50 1,156.80
2016-09-30 2,563.10 698.60 705.80
2016-06-30 2,563.10 698.60 705.80
2016-03-31 2,563.10 698.60 705.80
2015-12-31 2,552.10 957.60 1,076.20
2015-09-30 2,223.40 948.00 679.70
2015-06-30 2,223.40 948.00 679.70
2015-03-31 2,223.40 948.00 679.70
2014-12-31 2,383.30 953.30 901.60
2014-09-30 2,147.10 947.20 526.80
2014-06-30 2,147.10 947.20 526.80
2014-03-31 2,147.10 947.20 526.80
2013-12-31 2,136.20 1,257.90 1,033.20
2013-09-30 1,932.30 847.70 544.30
2013-06-30 1,932.30 847.70 544.30
  • Sika's level of debt (128.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.9% vs 128.9% today).
  • Debt is well covered by operating cash flow (29.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.8x coverage).
X
Financial health checks
We assess Sika'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. Sika 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.

SIKA Dividends

 What is Sika'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
1.49%
Current annual income from Sika dividends. Estimated to be 1.92% next year.
If you bought CHF2,000 of Sika shares you are expected to receive CHF30 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?
  • Sika's pays a lower dividend yield than the bottom 25% of dividend payers in Switzerland (2.08%).
  • Sika's dividend is below the markets top 25% of dividend payers in Switzerland (4.36%).
Upcoming dividend payment

Purchase Sika before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:SIKA 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 10 Analyst Estimates (S&P Global) See Below
Switzerland Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.3%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 159 Stocks 3.3%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.3%
Switzerland Bottom 25% Dividend Yield 25th Percentile 2.1%
Switzerland Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

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

SWX:SIKA Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 3.61 2.00
2022-12-31 3.27 7.00
2021-12-31 2.98 10.00
2020-12-31 2.62 11.00
2020-04-04
SWX:SIKA Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2020-02-24 2.300 1.455
2020-01-15 2.300 1.266
2019-04-09 2.050 1.306

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

  • It is too early to tell whether Sika has stable dividend payments.
  • Sika only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Sika's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Sika's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Sika afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sika has a total score of 2/6, see the detailed checks below.


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

SIKA Management

 What is the CEO of Sika'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
Paul Schuler
COMPENSATION CHF4,333,000
AGE 64
TENURE AS CEO 2.8 years
CEO Bio

Mr. Paul Schuler, MBA, has been Chief Executive Officer at Sika AG since July 1, 2017 and has been its Member of Group Management since 2007. Mr. Schuler served as Regional Manager of Europe, Middle East and Africa at Sika AG since 2013. Mr. Schuler served as Regional Manager of North America of Sika AG since 2007 until 2012. Mr. Schuler served as the Head of Marketing Industry since 1988 until 2002 and Area Manager for Germany since 2003 until 2006 at Sika Finanz AG. He served as General Manager at Sika Deutschland GmbH, Stuttgart, Germany; Sika Korrosionsschutz GmbH, Gelsenkirchen, Germany; Sika Trocal GmbH, Troisdorf, Germany and Sika Addiment GmbH, Leimen, Germany from 2003 to 2006. He served as Product Manager and Head of Sales Industry at Sika Schweiz AG, Zurich, Switzerland from 1988 to 2002; International Key Account Sales Manager Switzerland at EMS Chemie AG, Domat/Ems, Switzerland from 1982 to 1988; Project Manager of Air Condition Plants at Luwa AG, HongKong/China from 1980 to 1982 and Production Manager at Hemair AG, Schindellegi, Switzerland from 1976 to 1980. He holds M.B.A from Graduate School of Business Administration, University of Washington/Zurich since 1993.

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

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

3
Average Tenure
55
Average Age
  • The tenure for the Sika management team is about average.
Management Team

Paul Schuler

TITLE
CEO & Member of Group Management
COMPENSATION
CHF4M
AGE
64
TENURE
2.8 yrs

Adrian Widmer

TITLE
Chief Financial Officer
AGE
51
TENURE
6.1 yrs

Frank Höfflin

TITLE
CTO & Member of Group Management
AGE
55
TENURE
3 yrs

Dominik Slappnig

TITLE
Head of Corporate Communications & Investor Relations

Stefan Mösli

TITLE
General Counsel & Secretary of the Board
AGE
59

Ernesto Schuemperli

TITLE
Head of Infrastructure & Mining
AGE
64
TENURE
3 yrs

Luz Granizo

TITLE
Head Technology Center Spain and Corporate Technology Head of Refurbishment

Thomas Hasler

TITLE
Head of Global Business & Industry
AGE
54
TENURE
9.3 yrs

Philippe Jost

TITLE
Head of Construction
AGE
48
TENURE
1.3 yrs

Marcos Vazquez

TITLE
Head of Procurement
Board of Directors Tenure

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

8.1
Average Tenure
62
Average Age
  • The tenure for the Sika board of directors is about average.
Board of Directors

Paul Hälg

TITLE
Chairman of the Board
COMPENSATION
CHF954K
AGE
65
TENURE
8 yrs

Monika Ribar

TITLE
Director
COMPENSATION
CHF313K
AGE
60
TENURE
9 yrs

Frits van Dijk

TITLE
Director
COMPENSATION
CHF309K
AGE
72
TENURE
8.3 yrs

Zug Sauter

TITLE
Director
COMPENSATION
CHF292K
AGE
62
TENURE
20.3 yrs

Christoph Tobler

TITLE
Director
COMPENSATION
CHF292K
AGE
62
TENURE
15.3 yrs

Justin Howell

TITLE
Director
COMPENSATION
CHF271K
AGE
48
TENURE
1.8 yrs

Thierry F. Vanlancker

TITLE
Director
COMPENSATION
CHF167K
AGE
55
TENURE
1 yrs

Victor Balli

TITLE
Director
COMPENSATION
CHF208K
AGE
62
TENURE
1 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 Sika'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. Sika 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.

SIKA News

Simply Wall St News

How Many Sika AG (VTX:SIKA) Shares Do Institutions Own?

We can see that Sika does have institutional investors; and they hold 52% of the stock. … Insider Ownership Of Sika The definition of company insiders can be subjective, and does vary between jurisdictions. … Public Company Ownership Public companies currently own 12% of SIKA stock.

Simply Wall St -

Calculating The Intrinsic Value Of Sika AG (VTX:SIKA)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CHF, Millions) CHF826.5m CHF1.0b CHF1.2b CHF1.3b CHF1.5b CHF1.6b CHF1.7b CHF1.7b CHF1.8b CHF1.9b Growth Rate Estimate Source Analyst x5 Analyst x4 Analyst x1 Analyst x1 Est @ 8.92% Est @ 7.22% Est @ 6.04% Est @ 5.21% Est @ 4.63% Est @ 4.22% Present Value (CHF, Millions) Discounted @ 9.59% CHF754.2 CHF859.2 CHF905.0 CHF925.0 CHF919.3 CHF899.5 CHF870.4 CHF835.6 CHF797.8 CHF758.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CHF8.5b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CHF1.9b × (1 + 3.3%) ÷ (9.6% – 3.3%) = CHF31b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CHFCHF31b ÷ ( 1 + 9.6%)10 = CHF12.42b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CHF20.94b.

Simply Wall St -

Is Sika AG's (VTX:SIKA) P/E Ratio Really That Good?

Sika has a price to earnings ratio of 28.25, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Sika: P/E of 28.25 = CHF138.3 ÷ CHF4.9 (Based on the trailing twelve months to June 2019.) Is A High P/E Ratio Good? … How Does Sika's Debt Impact Its P/E Ratio?

Simply Wall St -

Sika (VTX:SIKA) Seems To Use Debt Quite Sensibly

and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Either way, since Sika does have more debt than cash, it's worth keeping an eye on its balance sheet. … When analysing debt levels, the balance sheet is the obvious place to start.

Simply Wall St -

Why You Should Like Sika AG’s (VTX:SIKA) ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sika: 0.19 = CHF942m ÷ (CHF6.4b - CHF1.4b) (Based on the trailing twelve months to December 2018.) So, Sika has an ROCE of 19%. … How Sika's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is Sika AG's (VTX:SIKA) Growth Strong Enough To Justify Its June Share Price?

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Sika is available at price-to-earnings ratio of 35.55x, showing us it is overvalued compared to the CH market average ratio of 18.19x , and overvalued based on current earnings compared to the Chemicals industry average of 31.96x. … However, to properly examine the value of a high-growth stock such as Sika, we must reflect its earnings growth into the valuation. … A PE ratio of 35.55x and expected year-on-year earnings growth of 14% give Sika a quite high PEG ratio of 2.49x.

Simply Wall St -

Want To Invest In Sika AG (VTX:SIKA) Today? Read This First

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Sika is available at price-to-earnings ratio of 35.55x, showing us it is overvalued compared to the CH market average ratio of 18.19x , and overvalued based on current earnings compared to the Chemicals industry average of 31.96x. … But, to properly examine the value of a high-growth stock such as Sika, we must reflect its earnings growth into the valuation. … A PE ratio of 35.55x and expected year-on-year earnings growth of 14% give Sika a quite high PEG ratio of 2.49x.

Simply Wall St -

I Built A List Of Growing Companies And Sika (VTX:SIKA) Made The Cut

Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … Although Sika 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 -

Sika AG (VTX:SIKA): Is It A Smart Long Term Opportunity?

See our latest analysis for Sika Can we expect Sika to keep growing? … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … SWX:SIKA Past and Future Earnings, June 4th 2019 From the current net income level of CHF683m and the final forecast of CHF1.1b by 2022, the annual rate of growth for SIKA’s earnings is 14%.

Simply Wall St -

Estimating The Intrinsic Value Of Sika AG (VTX:SIKA)

Today we will run through one way of estimating the intrinsic value of Sika AG (VTX:SIKA). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model?

Simply Wall St -

SIKA Company Info

Description

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and tile grouts, and systems for under-tile waterproofing and sound reduction, as well as products for exterior and interior walls, such as wall-levelling products, decorative finish renders, and facade external insulation finish systems; and develops and markets various admixtures and additives for use in concrete, cement, and mortar production, as well as single-ply and built-up flat roofing systems. It also provides a range of technologies used for below and aboveground waterproofing, including flexible membrane systems, liquid applied membranes, joint waterproofing systems, waterproofing mortars and mortar admixtures, and injection resins and grouts for use in various markets, such as commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, tapes, spray foams, and elastic adhesives for the building envelope, interior finishing, and infrastructure construction applications. Further, the company provides repair, strengthening, and protective solutions for concrete structures, such as repair mortars, nonshrinking grouts, anchoring adhesives, protective coatings, and corrosion control and structural strengthening systems. It serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessels, industrial lamination, renewable energies, and facade engineering industries. Sika AG was founded in 1910 and is headquartered in Baar, Switzerland.

Details
Name: Sika AG
SIKA
Exchange: SWX
Founded: 1910
CHF21,856,200,214
141,739,301
Website: http://www.sika.com
Address: Sika AG
Zugerstrasse 50,
Baar,
Zug, 6341,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX SIKA Registered Shares SIX Swiss Exchange CH CHF 13. Jun 2018
OTCPK SKFO.F Registered Shares Pink Sheets LLC US USD 13. Jun 2018
DB SIKA Registered Shares Deutsche Boerse AG DE EUR 13. Jun 2018
LSE 0Z4C Registered Shares London Stock Exchange GB CHF 13. Jun 2018
BMV SIKA N Registered Shares Bolsa Mexicana de Valores MX MXN 13. Jun 2018
OTCPK SXYA.Y UNSPONSORD ADR Pink Sheets LLC US USD 15. May 2013
Number of employees
Current staff
Staff numbers
25,141
Sika employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 01:59
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/23
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.