Latest news with #SikaAG
Business Insider
20 hours ago
- Business
- Business Insider
Kepler Capital Sticks to Its Buy Rating for Sika AG (SIKA)
In a report released on June 12, Martin Flueckiger from Kepler Capital maintained a Buy rating on Sika AG (SIKA – Research Report), with a price target of CHF250.00. The company's shares closed yesterday at CHF209.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Flueckiger covers the Industrials sector, focusing on stocks such as Kone Oyj, Sika AG, and Georg Fischer AG. According to TipRanks, Flueckiger has an average return of 6.8% and a 62.30% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Sika AG with a CHF242.63 average price target.
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Business Standard
a day ago
- Business
- Business Standard
Sika sees major growth opportunity in India amid infra, tax reforms
By Liana Baker and Reto Gregori Sika AG Chief Executive Officer Thomas Hasler views the Indian market as being one of the biggest opportunities for the Swiss building products company over the next few years. 'They fixed their tax system and they are now working on infrastructure,' Hasler said in an interview this week in New York. 'They're working on, let's say, the foundation for the economic growth.' Prime Minister Narendra Modi was sworn in for his third term last year, ensuring he will serve until at least 2029. He has made infrastructure a priority, from the building of oil tankers to rail projects and domestic gas production. That should benefit companies like Sika, which makes sealants, mortars and other building adhesives. The Baar-based company's shares closed at 209 Swiss francs on Friday, giving Sika a market value of about 33.5 billion francs ($41.3 billion). 'It's rail, it's road, ports, airports everything,' Hasler said, adding that the company needs to further invest in India since there's still four to five years before the next election. About 3 per cent to 4 per cent of Sika's revenue comes from India and that could grow to double digits over the next 10 years, he said. 'In India, market potential today is probably somewhere $3 to $4 billion,' He said. 'We may go up to $6 billion or $7 billion in 10 years.' To be sure, he said success isn't guaranteed in the world's second-most populous country and some of its megacities have 'pains.' 'This is not going to be in 10 years taking over Europe — this is long term. But India has a potential within 10 years to be much more significant,' he said. He added that Sika has a 'good footprint' in the country, which it doubled through its acquisition of MBCC Group. MBCC is Sika's largest acquisition to date, at about 5.5 billion francs. The deal for the former construction chemicals business of BASF SE, which it bought from private equity firm Lone Star Funds, closed in 2023. Sika fended off a takeover approach from rival Cie. de Saint Gobain SA several years ago, one of the most acrimonious takeover fights in Europe.
Bloomberg
a day ago
- Business
- Bloomberg
Swiss Industrials Company Sika Sees Big India Opportunity
Sika AG Chief Executive Officer Thomas Hasler views the Indian market as being one of the biggest opportunities for the Swiss building products company over the next few years. 'They fixed their tax system and they are now working on infrastructure,' Hasler said in an interview this week in New York. 'They're working on, let's say, the foundation for the economic growth.'
Yahoo
23-04-2025
- Business
- Yahoo
Sika AG (VTX:SIKA) most popular amongst individual investors who own 51% of the shares, institutions hold 46%
Significant control over Sika by individual investors implies that the general public has more power to influence management and governance-related decisions A total of 25 investors have a majority stake in the company with 38% ownership Institutions own 46% of Sika Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of Sika AG (VTX:SIKA) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk). Institutions, on the other hand, account for 46% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Let's delve deeper into each type of owner of Sika, beginning with the chart below. See our latest analysis for Sika Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Sika. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Sika's earnings history below. Of course, the future is what really matters. Hedge funds don't have many shares in Sika. BlackRock, Inc. is currently the company's largest shareholder with 7.7% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.6% and 4.3%, of the shares outstanding, respectively. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Shareholders would probably be interested to learn that insiders own shares in Sika AG. Insiders own CHF880m worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling. The general public, mostly comprising of individual investors, collectively holds 51% of Sika shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Sika has 1 warning sign we think you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
09-04-2025
- Business
- Yahoo
Is Sika AG (VTX:SIKA) Trading At A 37% Discount?
Sika's estimated fair value is CHF300 based on 2 Stage Free Cash Flow to Equity Sika is estimated to be 37% undervalued based on current share price of CHF189 The CHF270 analyst price target for SIKA is 10% less than our estimate of fair value Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sika AG (VTX:SIKA) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CHF, Millions) CHF1.61b CHF1.67b CHF1.85b CHF1.96b CHF2.04b CHF2.11b CHF2.15b CHF2.19b CHF2.22b CHF2.24b Growth Rate Estimate Source Analyst x5 Analyst x6 Analyst x3 Est @ 5.84% Est @ 4.20% Est @ 3.05% Est @ 2.24% Est @ 1.68% Est @ 1.28% Est @ 1.01% Present Value (CHF, Millions) Discounted @ 4.7% CHF1.5k CHF1.5k CHF1.6k CHF1.6k CHF1.6k CHF1.6k CHF1.6k CHF1.5k CHF1.5k CHF1.4k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CHF15b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 0.4%. We discount the terminal cash flows to today's value at a cost of equity of 4.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CHF2.2b× (1 + 0.4%) ÷ (4.7%– 0.4%) = CHF52b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CHF52b÷ ( 1 + 4.7%)10= CHF33b 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 CHF48b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of CHF189, the company appears quite good value at a 37% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Sika as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 4.7%, which is based on a levered beta of 1.003. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Sika Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Opportunity Annual revenue is forecast to grow faster than the Swiss market. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the Swiss market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Sika, we've put together three further factors you should further research: Risks: As an example, we've found 1 warning sign for Sika that you need to consider before investing here. Future Earnings: How does SIKA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart . Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SWX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
