# Sika AG (SIKA.SW)

Canonical: https://gigainvestors.com/s/SIKA.SW

Analysis as of: 2026-10-16T07:34:10.518Z. Financial observations: FY2002–FY2025.

Listing currency: CHF. Reporting currency: CHF.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CHF 181.35 per share; close as of 2026-10-15.

Estimated value: low CHF 115.49 per share, central CHF 161.69 per share, high CHF 189.36 per share. Buy at or below the central value CHF 161.69 per share. Valuation as of 2026-10-16T07:34:10.518Z; scenarios are not confidence intervals.

Expected annual return: 9.3% at the stated quote. About 9.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CH 10-year bond 0.5% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.04×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.13×

- FY2020: 0.14×

- FY2021: 0.15×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.15×

- FY2025: 0.14×

### moat: pass

- ROIC, median of available years: 29.4%

- ROIC, second-lowest year: 25.0%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 53.3%

- Recent gross margin (lower of latest and 3-year median): 54.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 16.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 33.0%

- FY2017: 31.2%

- FY2018: 29.8%

- FY2019: 25.5%

- FY2020: 29.1%

- FY2021: 30.5%

- FY2022: 32.5%

- FY2023: 25.1%

- FY2024: 25.0%

- FY2025: 22.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CHF 6.1B

- Net income, five-year total: CHF 5.6B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.4 pp

- Working capital / revenue, final three-year average: 20.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.13×

- FY2022: 1.04×

- FY2023: 1.14×

- FY2024: 1.09×

- FY2025: 1.10×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 31.2% vs 25.0%

- Per-share earnings: 3.70 to 6.62 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: CHF 14B

- Cumulative retained earnings: CHF 3.5B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.6%

- Per-share value change: CHF 2.93

- Per-share value, starting three-year median: CHF 3.70

- Per-share value, ending three-year median: CHF 6.62

- Buybacks concentrated in cheaper years (correlation): 0.65

- Average buyback yield: 1.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: CHF 7.8B

- Cumulative net income, 10 years: CHF 9.0B

- ROIC, first three-year median: 31.2%

- ROIC, last three-year median: 25.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CHF 3.70

- FY2017: CHF 4.22

- FY2018: CHF 4.52

- FY2019: CHF 4.64

- FY2020: CHF 5.03

- FY2021: CHF 6.46

- FY2022: CHF 7.19

- FY2023: CHF 6.62

- FY2024: CHF 7.76

- FY2025: CHF 6.51

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.52×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.19×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -0.1%

- FY2018: -1.0%

- FY2019: -4.6%

- FY2020: -5.5%

- FY2021: -0.1%

- FY2022: 0.5%

- FY2023: -3.9%

- FY2024: -3.1%

- FY2025: -3.6%

## Holders

## Price story

Down 52% since Dec 2021 · "Sika Shares Drop After Guidance Cut" (finance.yahoo.com, Jan 2026) · sales -4.8%

Story as of 2026-10-16T09:59:59.411Z; price observation 2026-10-15.

Price needs cash profits to grow 8% a year for ten years

- 2026-01-13: Sika Shares Drop After Guidance Cut ([finance.yahoo.com](https://finance.yahoo.com/m/057000f3-49bd-36dc-bd54-457f5eb03c75/sika-shares-drop-after.html))

- 2026-07-28: SIKA DELIVERS 4.0% LOCAL CURRENCY REVENUE GROWTH AND UPGRADES FULL-YEAR GROWTH EXPECTATIONS ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sika-delivers-4-0-local-030000966.html))

### Sales · FY2024–2025

sales -4.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CHF 5.7B 

- FY2017: CHF 6.2B 

- FY2018: CHF 7.1B 

- FY2019: CHF 8.1B 

- FY2020: CHF 7.9B 

- FY2021: CHF 9.3B 

- FY2022: CHF 10B 

- FY2023: CHF 11B 

- FY2024: CHF 12B 

- FY2025: CHF 11B 

### Gross margin · FY2025

gross margin 54.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 55.3% 

- FY2017: 54.4% 

- FY2018: 52.9% 

- FY2019: 53.6% 

- FY2020: 30.7% 

- FY2021: 30.1% 

- FY2022: 29.4% 

- FY2023: 31.4% 

- FY2024: 54.5% 

- FY2025: 54.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are CHF 11.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2025: revenue 11201300000; grossProfit 6153600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SIKA.SW: 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. It offers admixtures and additives for concrete, cement, and mortar production;waterproofing solutions, such as flexible membrane systems, liquid-applied membranes, joint waterproofing systems, waterproofing mortars, and injection resins under the SikaProof brand for commercial and residential basements, tunnels, bridges, and water retaining structures; and flat roofing systems, including both flexible sheet and liquid-applied membranes under the Sika Sarnafil brand, as well as vapor control layers, adhesives, insulation, fixation, roof drainage, and accessories. The company also provides adhesives and grouts, systems for under-tile waterproofing, sound reduction, decorative finishes, and exterior insulation finishing systems; flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial settings; and sealants, adhesives, spray foams, and tapes for commercial, industrial, residential, and infrastructure construction projects. It serves automobile and commercial vehicle assembly, industrial lamination, renewable energy, home appliances, and advanced resins industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

### Why customers stay

Margins ranged from 31.4% to 54.9% during 2023–25; it earns 29.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2023: grossProfit / revenue = 31.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2024: grossProfit / revenue = 54.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2025: grossProfit / revenue = 54.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); 10-year return on capital observations [[2016,0.33009836163697465],[2017,0.31159233594272295],[2018,0.29786593260754574],[2019,0.2547809179501385],[2020,0.290738014970928],[2021,0.30505907601399135],[2022,0.3249652391500724],[2023,0.250865044857814],[2024,0.2499086028468844],[2025,0.22460362341297066]]; median 0.29430197378923684. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CHF 297 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2016: growth capex 0; upkeep 149500000; owner earnings 584000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2017: growth capex 0; upkeep 158500000; owner earnings 657200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2018: growth capex 29400000; upkeep 204000000; owner earnings 682900000. Growth capex / owner earnings = 0.043051691316444575.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2019: growth capex 0; upkeep 179700000; owner earnings 838860000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2020: growth capex 0; upkeep 131700000; owner earnings 995780000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2021: growth capex 0; upkeep 170600000; owner earnings 1180380000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2022: growth capex 0; upkeep 266000000; owner earnings 1214160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2023: growth capex 0; upkeep 256800000; owner earnings 1210700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2024: growth capex 0; upkeep 359000000; owner earnings 1357440000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2025: growth capex 0; upkeep 348100000; owner earnings 1151260000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); Dividend observations: [[2016,198000000],[2017,243700000],[2018,281800000],[2019,290600000],[2020,326000000],[2021,354500000],[2022,445800000],[2023,492300000],[2024,264700000],[2025,288800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); FY2025: cash repurchases 297000000 CHF.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SIKA.SW SharesStats.PercentInsiders = 0.159 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8% yearly over ten years; actual growth was 8.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.518Z); Ten-year compound average after fade. Initial solved rate 0.1318013000228141. Price 181.35; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.125482200838496 → FY2025 7.172333877418792. Closing-price date 2026-10-15.

## Monthly share-price history (CHF per share)

- 2016-10: CHF 79.27 per share

- 2016-11: CHF 82.22 per share

- 2016-12: CHF 81.53 per share

- 2017-01: CHF 86.42 per share

- 2017-02: CHF 94.25 per share

- 2017-03: CHF 100.17 per share

- 2017-04: CHF 105.83 per share

- 2017-05: CHF 104.00 per share

- 2017-06: CHF 102.67 per share

- 2017-07: CHF 111.08 per share

- 2017-08: CHF 113.33 per share

- 2017-09: CHF 120.08 per share

- 2017-10: CHF 123.08 per share

- 2017-11: CHF 126.67 per share

- 2017-12: CHF 129.00 per share

- 2018-01: CHF 134.42 per share

- 2018-02: CHF 129.67 per share

- 2018-03: CHF 124.75 per share

- 2018-04: CHF 120.50 per share

- 2018-05: CHF 131.17 per share

- 2018-06: CHF 137.40 per share

- 2018-07: CHF 140.90 per share

- 2018-08: CHF 143.70 per share

- 2018-09: CHF 142.90 per share

- 2018-10: CHF 129.20 per share

- 2018-11: CHF 123.70 per share

- 2018-12: CHF 124.60 per share

- 2019-01: CHF 131.00 per share

- 2019-02: CHF 135.00 per share

- 2019-03: CHF 139.10 per share

- 2019-04: CHF 156.00 per share

- 2019-05: CHF 148.90 per share

- 2019-06: CHF 166.60 per share

- 2019-07: CHF 144.00 per share

- 2019-08: CHF 142.10 per share

- 2019-09: CHF 146.00 per share

- 2019-10: CHF 169.50 per share

- 2019-11: CHF 174.05 per share

- 2019-12: CHF 181.85 per share

- 2020-01: CHF 173.50 per share

- 2020-02: CHF 171.40 per share

- 2020-03: CHF 159.95 per share

- 2020-04: CHF 159.70 per share

- 2020-05: CHF 164.50 per share

- 2020-06: CHF 182.35 per share

- 2020-07: CHF 200.50 per share

- 2020-08: CHF 216.60 per share

- 2020-09: CHF 226.30 per share

- 2020-10: CHF 225.70 per share

- 2020-11: CHF 231.90 per share

- 2020-12: CHF 241.80 per share

- 2021-01: CHF 242.40 per share

- 2021-02: CHF 240.20 per share

- 2021-03: CHF 270.00 per share

- 2021-04: CHF 272.40 per share

- 2021-05: CHF 289.30 per share

- 2021-06: CHF 302.50 per share

- 2021-07: CHF 319.10 per share

- 2021-08: CHF 330.10 per share

- 2021-09: CHF 296.80 per share

- 2021-10: CHF 310.00 per share

- 2021-11: CHF 360.70 per share

- 2021-12: CHF 380.20 per share

- 2022-01: CHF 321.10 per share

- 2022-02: CHF 306.00 per share

- 2022-03: CHF 307.40 per share

- 2022-04: CHF 301.00 per share

- 2022-05: CHF 265.50 per share

- 2022-06: CHF 220.00 per share

- 2022-07: CHF 233.90 per share

- 2022-08: CHF 220.40 per share

- 2022-09: CHF 200.70 per share

- 2022-10: CHF 225.80 per share

- 2022-11: CHF 237.00 per share

- 2022-12: CHF 221.70 per share

- 2023-01: CHF 258.80 per share

- 2023-02: CHF 263.90 per share

- 2023-03: CHF 255.50 per share

- 2023-04: CHF 245.40 per share

- 2023-05: CHF 248.40 per share

- 2023-06: CHF 255.70 per share

- 2023-07: CHF 270.70 per share

- 2023-08: CHF 250.40 per share

- 2023-09: CHF 233.10 per share

- 2023-10: CHF 216.90 per share

- 2023-11: CHF 237.20 per share

- 2023-12: CHF 273.70 per share

- 2024-01: CHF 240.10 per share

- 2024-02: CHF 255.50 per share

- 2024-03: CHF 268.60 per share

- 2024-04: CHF 263.30 per share

- 2024-05: CHF 272.90 per share

- 2024-06: CHF 257.20 per share

- 2024-07: CHF 266.80 per share

- 2024-08: CHF 272.00 per share

- 2024-09: CHF 280.10 per share

- 2024-10: CHF 240.50 per share

- 2024-11: CHF 228.10 per share

- 2024-12: CHF 215.80 per share

- 2025-01: CHF 233.30 per share

- 2025-02: CHF 228.70 per share

- 2025-03: CHF 213.20 per share

- 2025-04: CHF 205.80 per share

- 2025-05: CHF 219.70 per share

- 2025-06: CHF 215.40 per share

- 2025-07: CHF 192.60 per share

- 2025-08: CHF 185.50 per share

- 2025-09: CHF 177.10 per share

- 2025-10: CHF 157.20 per share

- 2025-11: CHF 158.25 per share

- 2025-12: CHF 162.60 per share

- 2026-01: CHF 148.30 per share

- 2026-02: CHF 159.50 per share

- 2026-03: CHF 129.90 per share

- 2026-04: CHF 143.70 per share

- 2026-05: CHF 153.30 per share

- 2026-06: CHF 166.75 per share

- 2026-07: CHF 181.85 per share

- 2026-08: CHF 192.05 per share

- 2026-09: CHF 184.00 per share

- 2026-10: CHF 176.50 per share

## Annual estimated value (CHF per share)

- FY2016: low CHF 42.88 per share, central CHF 51.83 per share, high CHF 59.34 per share

- FY2017: low CHF 52.50 per share, central CHF 67.05 per share, high CHF 77.46 per share

- FY2018: low CHF 70.76 per share, central CHF 100.87 per share, high CHF 117.66 per share

- FY2019: low CHF 78.90 per share, central CHF 112.74 per share, high CHF 131.61 per share

- FY2020: low CHF 61.50 per share, central CHF 68.99 per share, high CHF 78.98 per share

- FY2021: low CHF 71.91 per share, central CHF 81.18 per share, high CHF 93.29 per share

- FY2022: low CHF 92.94 per share, central CHF 105.04 per share, high CHF 120.36 per share

- FY2023: low CHF 96.58 per share, central CHF 116.23 per share, high CHF 134.99 per share

- FY2024: low CHF 101.26 per share, central CHF 121.97 per share, high CHF 141.63 per share

- FY2025: low CHF 116.57 per share, central CHF 162.75 per share, high CHF 190.41 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations