Added to YB: 2026-05-27
Pitch date: 2026-05-25
SIKA.SW [neutral]
Sika AG
+0.4%
current return
Author Info
Sector Stories is an ex-JPM buyside, analysing stocks mostly through a broader sector lens, and using substack to sharpen, share and track investment ideas. Sign up for the newsletter.
Company Info
Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide.
Market Cap
CHF 23.6B
Pitch Price
CHF 149.00
Price Target
N/A
Dividend
2.52%
EV/EBITDA
13.69
P/E
22.62
EV/Sales
2.53
Sector
Chemicals
Category
value
Sika: Sticky Business
SIKA.SW (overview): Leading construction chemicals co w/ spec-led products (55% sales) embedded in designs, 1-3% of project cost but mission-critical. 2-3% R&D spend vs <1% peers creates moat. Bolt-on M&A at 8x EBITDA → 4x post-synergies works; large deals (Parex, MBCC) dilutive, drove ROIC from 21% to 15%. China resi collapse (-45% 2yrs) cost 2% group organic growth. Margins held, FCF solid despite downturn. Trading 17x cash P/E; would buy closer to 13x given China uncertainty, M&A risk, negative end markets.
Read full article (18 min)