Wide-Moat SGS Continues to Expand Its Scale Via Acquisitions; Shares Fairly Valued
SGS is the largest testing, inspection, and certification firm globally, with offerings covering a variety of sectors from consumer products to natural resources. The industry is highly fragmented, with only four global players accompanied by a slew of regional and local companies. This gives large firms such as SGS an advantage, especially with multinational clients. SGS’ portfolio of over 1,000 government accreditations, authorizations, and certifications is another advantage, providing a significant barrier to entry.
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