Narrow-moat SGS reported a strong first-half 2024, with organic revenue growth of 8%, in line with management’s full-year guidance of mid- to high-single-digit growth. We reiterate our CHF 90 fair value estimate, but shares are now fairly valued following the July 24 price increase.
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.
Large exposure to commodity-related sectors could hurt the company’s ability to grow as quickly as hoped over the next few years.
|
Metric
|
SGSN
|
ERF
|
BVI
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.83 | 18.59 | 22.32 |
Price/Book Value | 29.90 | 2.53 | 6.76 |
Price/Sales | 2.70 | 1.63 | 2.25 |
Price/Cash Flow | 16.59 | 10.50 | 15.42 |
|
Metric
|
SGSN
|
ERF
|
BVI
|
|---|---|---|---|
Quick Ratio | 1.20 | 1.34 | 1.67 |
Current Ratio | 1.23 | 1.45 | 1.67 |
Interest Coverage | 10.56 | 4.18 | 8.40 |
|
Metric
|
SGSN
|
ERF
|
BVI
|
|---|---|---|---|
Return on Assets (Normalized) | 9.70% | 5.44% | 8.25% |
Return on Equity (Normalized) | 146.30% | 13.87% | 31.39% |
Return on Invested Capital (Normalized) | 14.10% | 7.66% | 12.79% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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