(SGSN) SGS - SW
Sector: Industrials | Industry: Consulting Services | Exchange: SW (Switzerland) | Market Cap: 17.698m CHF | Total Return: 9.9% in 12m
Avg Turnover: 30.5M
Warnings
No concerns identified
Tailwinds
Shakeout
SGS SA is a Switzerland-based global leader in the Testing, Inspection, and Certification (TIC) industry. Founded in 1878, the company operates across two primary segments: Testing & Inspection and Certification. Its service portfolio includes laboratory analysis, regulatory compliance, quality control, and sustainability assurance for a diverse range of sectors, including agriculture, energy, pharmaceuticals, and manufacturing.
The TIC sector functions as a critical intermediary in global trade, driven by increasing regulatory complexity and the outsourcing of quality assurance by industrial firms. As a capital-light business model, SGS relies on a vast network of laboratories and technical expertise rather than heavy manufacturing infrastructure. For deeper insights into the companys competitive positioning, consider exploring the detailed financial metrics available on ValueRay.
SGS maintains a broad geographic footprint across Europe, Asia Pacific, and the Americas, serving both private corporations and government entities. The company’s expansion into digital trust and cybersecurity reflects a strategic pivot toward modernizing traditional inspection services for the technology and MedTech industries.
- Rising demand for sustainability assurance and ESG certification services
- Strategic cost savings program targets margin expansion through 2027
- Global trade volume fluctuations impact Testing and Inspection segment revenue
- Strategic acquisitions in high-growth MedTech and cybersecurity sectors drive scale
| Net Income: 511.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -3.92 > 1.0 |
| NWC/Revenue: 23.04% < 20% (prev 4.72%; Δ 18.32% < -1%) |
| CFO/TA 0.15 > 3% & CFO 1.19b > Net Income 511.0m |
| Net Debt (4.50b) to EBITDA (1.17b): 3.85 < 3 |
| Current Ratio: 1.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (193.1m) vs 12m ago 4.39% < -2% |
| Gross Margin: 39.85% > 18% (prev 36.46%; Δ 3.39% > 0.5%) |
| Asset Turnover: 71.54% > 50% (prev 100.7%; Δ -29.12% > 0%) |
| Interest Coverage Ratio: 8.73 > 6 (EBIT TTM 794.0m / Interest Expense TTM 91.0m) |
| A: 0.15 (Total Current Assets 3.94b - Total Current Liabilities 2.73b) / Total Assets 7.88b |
| B: 0.37 (Retained Earnings 2.92b / Total Assets 7.88b) |
| C: 0.11 (EBIT TTM 794.0m / Avg Total Assets 7.32b) |
| D: 0.13 (Book Value of Equity 901.0m / Total Liabilities 6.89b) |
| Altman-Z'' = 3.08 = A |
| DSRI: 1.30 (Receivables 1.45b/1.45b, Revenue 5.23b/6.79b) |
| GMI: 0.92 (GM 36.46% / 39.85%) |
| AQI: 0.89 (AQ_t 0.33 / AQ_t-1 0.37) |
| SGI: 0.77 (Revenue 5.23b / 6.79b) |
| TATA: -0.09 (NI 511.0m - CFO 1.19b) / TA 7.88b) |
| Beneish M = -3.10 (Cap -4..+1) = AA |
As of June 19, 2026, the stock is trading at CHF 91.40 with a total of 321,074 shares traded.
Over the past week, the price has changed by -0.27%,
over one month by +3.92%,
over three months by +4.72% and
over the past year by +9.90%.
SGS has no consensus analysts rating.
P/E Trailing = 25.7126
P/E Forward = 22.0264
P/S = 2.5483
P/B = 19.6424
P/EG = 5.009
Revenue TTM = 5.23b CHF
EBIT TTM = 794.0m CHF
EBITDA TTM = 1.17b CHF
Long Term Debt = 3.37b CHF (from longTermDebt, last quarter)
Short Term Debt = 989.0m CHF (from shortTermDebt, last quarter)
Debt = 5.86b CHF (from shortLongTermDebtTotal, last quarter) + Leases 560.0m
Net Debt = 4.50b CHF (calculated: Debt 5.86b - CCE 1.36b)
Enterprise Value = 22.2b CHF (17.7b + Debt 5.86b - CCE 1.36b)
Interest Coverage Ratio = 8.73 (Ebit TTM 794.0m / Interest Expense TTM 91.0m)
EV/FCF = 27.35x (Enterprise Value 22.2b / FCF TTM 811.5m)
FCF Yield = 3.66% (FCF TTM 811.5m / Enterprise Value 22.2b)
FCF Margin = 15.50% (FCF TTM 811.5m / Revenue TTM 5.23b)
Net Margin = 9.76% (Net Income TTM 511.0m / Revenue TTM 5.23b)
Gross Margin = 39.85% ((Revenue TTM 5.23b - Cost of Revenue TTM 3.15b) / Revenue TTM)
Gross Margin QoQ = 37.92% (prev 43.80%)
Tobins Q-Ratio = 2.82 (Enterprise Value 22.2b / Total Assets 7.88b)
Interest Expense / Debt = 1.55% (Interest Expense 91.0m / Debt 5.86b)
Taxrate = 25.34% (186.0m / 734.0m)
NOPAT = 592.8m (EBIT 794.0m * (1 - 25.34%))
Current Ratio = 1.44 (Total Current Assets 3.94b / Total Current Liabilities 2.73b)
Debt / Equity = 6.50 (Debt 5.86b / totalStockholderEquity, last quarter 901.0m)
Debt / EBITDA = 3.85 (Net Debt 4.50b / EBITDA 1.17b)
Debt / FCF = 5.54 (Net Debt 4.50b / FCF TTM 811.5m)
Total Stockholder Equity = 734.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.98% (Net Income 511.0m / Total Assets 7.88b)
RoE = 69.59% (Net Income TTM 511.0m / Total Stockholder Equity 734.2m)
RoCE = 19.36% (EBIT 794.0m / Capital Employed (Equity 734.2m + L.T.Debt 3.37b))
RoIC = 10.08% (NOPAT 592.8m / Invested Capital 5.88b)
WACC = 5.59% (E(17.7b)/V(23.6b) * Re(7.06%) + D(5.86b)/V(23.6b) * Rd(1.55%) * (1-Tc(0.25)))
Discount Rate = 7.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: -75.77%
[DCF] Terminal Value 73.10% ; FCFF base≈870.5m ; Y1≈763.4m ; Y5≈616.8m
[DCF] Fair Price = 27.33 (EV 9.90b - Net Debt 4.50b = Equity 5.40b / Shares 197.8m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -57.77 | EPS CAGR: -56.35% | SUE: 0.0 | # QB: 0
Revenue Correlation: -15.79 | Revenue CAGR: -2.48% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2026-12-31): EPS=4.10 | Chg30d=-0.21% | Revisions=-7% | GrowthEPS=+7.1% | GrowthRev=+8.3%
EPS next Year (2027-12-31): EPS=4.39 | Chg30d=-0.22% | Revisions=-33% | GrowthEPS=+7.2% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -33%