Skip to Content

SGS AG SGSN

Morningstar Rating
CHF 81.44 +0.96 (1.19%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

SGS Well Positioned for Whatever 2024 Throws at It

SGS is the largest company globally in the testing, inspection, and certification sector, with global operations servicing a variety of sectors. The TIC market is highly fragmented, comprised mainly of local or regional players that lack the capabilities to operate across multiple industries and geographies. As such, they struggle to successfully service the needs of multinational companies. SGS' scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Price vs Fair Value

SGSN is trading at a 11% discount.
Price
CHF 80.48
Fair Value
CHF 21.00
Uncertainty
Low
1-Star Price
CHF 574.60
5-Star Price
CHF 25.00
Economic Moat
Ctkmk
Capital Allocation
Jfsjdhshv

Bulls Say, Bears Say

Bulls

As the largest company in the sector, SGS boasts a strong brand, diversified revenue base, and scale, allowing it significant competitive advantages that should persist.

Bears

Large exposure to commodity-related sectors could hurt the company’s ability to grow as quickly as hoped over the next few years.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SGSN is a good fit for your portfolio.

Trading Information

Previous Close Price
CHF 80.48
Day Range
CHF 80.5482.00
52-Week Range
CHF 69.6288.34
Bid/Ask
CHF 0.00 / CHF 0.00
Market Cap
CHF 15.01 Bil
Volume/Avg
563,020 / 425,105

Key Statistics

Price/Earnings (Normalized)
22.40
Price/Sales
2.28
Dividend Yield (Trailing)
3.93%
Dividend Yield (Forward)
3.93%
Total Yield
4.00%

Company Profile

Switzerland-listed SGS is the largest and one of the oldest companies in the testing, inspection, and certification industry. The company’s primary activities involve testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure global/company standards. SGS is one of only four TIC companies that operate globally across numerous industries, including agriculture, food and life science, and transport services. SGS was first listed in 1981 and employs almost 100,000 people worldwide.
Sector
Industrials
Industry
Consulting Services
Stock Style Box
Large Core
Total Number of Employees
103,193

Competitors

Valuation

Metric
SGSN
ERF
BVI
Price/Earnings (Normalized)
22.4021.0019.24
Price/Book Value
32.702.856.29
Price/Sales
2.281.842.09
Price/Cash Flow
13.7511.8614.35
Price/Earnings
SGSN
ERF
BVI

Financial Strength

Metric
SGSN
ERF
BVI
Quick Ratio
1.181.341.67
Current Ratio
1.211.451.67
Interest Coverage
12.174.188.40
Quick Ratio
SGSN
ERF
BVI

Profitability

Metric
SGSN
ERF
BVI
Return on Assets (Normalized)
10.17%5.44%8.25%
Return on Equity (Normalized)
146.09%13.87%31.39%
Return on Invested Capital (Normalized)
14.72%7.66%12.79%
Return on Assets
SGSN
ERF
BVI
See how this stock stacks up to its competitors with Morningstar Investor

Consulting Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
EXPGF
Experian PLCVdcq$37.7 Bil
EXPGY
Experian PLC ADRBjbgcjscGyvy$37.7 Bil
VRSK
Verisk Analytics IncCczstdmbbQcfm$31.9 Bil
EFX
Equifax IncDssvsjgpkVntph$30.2 Bil
BAH
Booz Allen Hamilton Holding Corp Class AQlhfv$18.4 Bil
SGSOF
SGS AGDngldg$16.5 Bil
SGSOY
SGS AG ADRQcrvk$16.5 Bil
TRU
TransUnionRbtbxlrmryKqr$13.6 Bil
BVRDF
Bureau Veritas SAZdtbt$12.9 Bil
BVVBY
Bureau Veritas SA ADRDlklc$12.9 Bil

Sponsor Center