Added to YB: 2024-04-15
Pitch date: 2024-04-12
SGSN.SW [bullish]
SGS SA
+10.8%
current return
Author Info
Slow Turtle is an investment manager who invests in moats, special sits, commodities, deep value, and all caps. Sign up for the newsletter.
Company Info
SGS SA provides inspection, testing, and verification services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific.
Market Cap
CHF 16.6B
Pitch Price
CHF 78.79
Price Target
N/A
Dividend
3.59%
EV/EBITDA
14.95
P/E
30.21
EV/Sales
2.95
Sector
Professional Services
Category
growth
SGS: A fantastic business heading in the right direction
SGSN.SW: Accounting understates true profitability since 2019, FCF generation underestimated. New CEO making needed organizational changes. EM markets (50% of revs) to drive growth post-FX headwinds. Global TIC leader, 33% revs from APAC. 95% retention rates. OPM down but cash margins stable/up. Decentralizing saves CHF100M by 2025.
Read full article (4 min)