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SGS AG SGSN

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Stock XSWX Rating as of
CHF 93.64 −1.68 (1.76%)
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As of Delayed Price Closed

Company Report

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SGS Maintains Strong Position

Benjamin Slupecki

SGS is the largest company globally in the testing, inspection, and certification sector, with global operations servicing a variety of sectors. The TIC market is highly fragmented, comprised mainly of local or regional players that lack the capabilities to operate across multiple industries and geographies. As such, they struggle to successfully service the needs of multinational companies. SGS' scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

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Price vs Fair Value

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SGSN is trading at a 268% premium.
Price
CHF 93.64
Fair Value
CHF 27.00
Uncertainty
Low
1-Star Price
CHF 395.80
5-Star Price
CHF 93.00
Economic Moat
Yxkmhz
Capital Allocation
Mbkqwzpv

Bulls Say, Bears Say

Bulls

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.

Bears

Large exposure to commodity-related sectors could hurt the company’s ability to grow as quickly as hoped over the next few years.

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Trading Information

Previous Close Price
CHF 95.32
Day Range
CHF 93.64–95.34
52-Week Range
CHF 69.62–98.40
Bid/Ask
CHF 92.00 / CHF 95.00
Market Cap
CHF 17.72 Bil
Volume/Avg
444,103 / 358,648

Key Statistics

Price/Earnings (Normalized)
25.59
Price/Sales
2.72
Dividend Yield (Trailing)
3.42%
Dividend Yield (Forward)
3.42%
Total Yield
3.53%

Company Profile

Switzerland-listed SGS is the largest and one of the oldest companies in the testing, inspection, and certification industry. The company’s primary activities involve testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure global/company standards. SGS is one of only four TIC companies that operate globally across numerous industries, including agriculture, food and life science, and transport services. SGS was first listed in 1981 and employs almost 100,000 people worldwide.
Sector
Industrials
Industry
Consulting Services
Stock Style Box
Large Core
Total Number of Employees
103,193
Website
https://www.sgs.com

Competitors

Valuation

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Metric
SGSN
ITRK
BVI
Price/Earnings (Normalized)
 25.5921.2022.20
Price/Book Value
 29.636.318.02
Price/Sales
 2.722.482.23
Price/Cash Flow
 16.6715.0815.33
Price/Earnings
SGSN
ITRK
BVI

Financial Strength

Metric
SGSN
ITRK
BVI
Quick Ratio
 1.201.251.31
Current Ratio
 1.231.271.33
Interest Coverage
 10.5610.298.83
Quick Ratio
SGSN
ITRK
BVI

Profitability

Metric
SGSN
ITRK
BVI
Return on Assets (Normalized)
 9.70%10.62%8.39%
Return on Equity (Normalized)
 146.30%29.30%33.46%
Return on Invested Capital (Normalized)
 14.10%15.57%13.18%
Return on Assets
SGSN
ITRK
BVI

Consulting Services Industry Comparables

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1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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 SGS AG
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—Cjzp$21.2 Bil
 SGS AG ADR
SGSOY
—Vss$21.2 Bil
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—Ptmg$20.8 Bil
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BVRDF
—Ppssdsl$14.5 Bil
 Bureau Veritas SA ADR
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—Qbdvzcy$14.5 Bil
 FTI Consulting Inc
FCN
NtsllhvJkpjysm$8.1 Bil

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