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Sika (SXYAY)
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Sika (SXYAY) AI Stock Analysis

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SXYAY

Sika

(OTC:SXYAY)

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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
$26.00
▲(8.70% Upside)
Action:Reiterated
Date:08/29/26
The score is driven mainly by solid underlying profitability and positive free cash flow, tempered by a 2025 revenue decline and some margin/cash-generation softening. Technically, the uptrend is strong (price above major moving averages with positive MACD), but momentum appears stretched (overbought Stoch and elevated RSI). Valuation is a key headwind due to a high P/E and only a modest dividend yield.
Positive Factors
Solid Profitability
Sika retains strong underlying earnings power, with stable gross margins and mid-teens EBIT margins. This indicates differentiated, value-added specialty chemical products and provides resilience across construction and industrial demand cycles.
Negative Factors
Revenue Contraction
The revenue decline signals weaker operating momentum and exposes Sika to softer end-market demand or project activity. If prolonged, lower volumes could reduce fixed-cost absorption and limit the company’s ability to sustain growth.
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Positive Factors
Negative Factors
Solid Profitability
Sika retains strong underlying earnings power, with stable gross margins and mid-teens EBIT margins. This indicates differentiated, value-added specialty chemical products and provides resilience across construction and industrial demand cycles.
Read all positive factors

Sika (SXYAY) vs. SPDR S&P 500 ETF (SPY)

Sika Business Overview & Revenue Model

Company Description
Sika AG, a prominent specialty chemicals enterprise established in 1910, operates globally from its headquarters in Baar, Switzerland. The company specializes in the creation, manufacturing, and distribution of a comprehensive array of systems and...
How the Company Makes Money
Sika primarily makes money by selling specialty chemical products and integrated systems to customers in construction and industrial end markets. Revenue is generated from product sales across multiple categories: (1) Concrete admixtures and addit...

Sika Earnings Call Summary

Earnings Call Date:Jul 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Feb 19, 2027
Earnings Call Sentiment Positive
The call balanced clear operational and strategic progress against notable external and timing headwinds. Highlights include 4% local currency growth in H1, a 60 bps material margin expansion to 55.7%, EBITDA resilience (CHF 1.063 billion), Fast Forward program traction (on track for CHF 80m savings), rising M&A synergies (NBCC CHF 195m TTM), and raised full-year local currency guidance to 3%–6%. Lowlights centered on a large FX translation drag (~-5.5% in H1), a ~1.5% China construction headwind, elevated transportation and supply-chain costs, and a one-off tax payment that reduced H1 free cash flow. On balance, underlying operational execution, margin improvement initiatives, and upgraded guidance outweigh the external and timing challenges.
Positive Updates
Solid Top-Line Performance in Local Currency
Reported sales of CHF 5.59 billion (slight decline YoY) but strong local currency growth of 4% in H1 2026 (organic 2.9% + 1.1% M&A). Group raised full-year local currency growth guidance from ~1%–4% to 3%–6% based on H1 momentum.
Negative Updates
Significant Foreign Exchange Headwind
Adverse FX translation reduced reported sales by ~5.5% in H1 (over CHF 300 million negative impact). Management expects a negative FX impact of approximately 3%–4% for the full year, weighing on reported Swiss franc results.
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Q2-2026 Updates
Negative
Solid Top-Line Performance in Local Currency
Reported sales of CHF 5.59 billion (slight decline YoY) but strong local currency growth of 4% in H1 2026 (organic 2.9% + 1.1% M&A). Group raised full-year local currency growth guidance from ~1%–4% to 3%–6% based on H1 momentum.
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Company Guidance
Management raised full‑year local‑currency sales guidance to 3–6% (up from 1–4%) and maintained an EBITDA margin target of 19.0–19.5%, while targeting operating free cash flow of >10% of net sales; they expect a roughly 3–4% negative FX translation headwind for the year (H1 FX was –5.5%, >CHF300m). In H1 they reported CHF5.59bn revenue (4% L.C. growth: organic 2.9% + 1.1% M&A; excluding China construction organic growth was 4.4% with China construction a ~1.5pp headwind), material margin expanded to 55.7% (+60bps), EBITDA was CHF1.063bn (margin +10bps reported, +30bps constant currency), net profit CHF552m (EPS CHF3.43), and operating free cash flow CHF139.6m. Fast Forward is expected to deliver CHF80m savings in 2026 (≈80% run‑rate at mid‑year) and trailing 12‑month M&A synergies reached CHF195m with a CHF200–220m target for 2026.

Sika Financial Statement Overview

Summary
Core profitability remains solid (gross margin mid-50s; EBIT margin mid-teens) with positive free cash flow conversion (~78% of net income in 2025). However, 2025 revenue declined (-7.816%), net margin compressed (~9.3% vs ~10.6% in 2024), and operating cash flow as a share of revenue softened (~14% vs ~18% in 2023), indicating weaker near-term operating momentum.
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.23B11.20B11.76B11.24B10.49B9.25B
Gross Profit4.84B6.15B6.42B6.02B5.18B4.79B
EBITDA1.99B1.97B2.30B2.00B1.94B1.76B
Net Income1.05B998.31M1.25B1.06B1.16B1.05B
Balance Sheet
Total Assets15.96B15.38B15.98B15.05B11.32B10.70B
Cash, Cash Equivalents and Short-Term Investments623.09M808.52M712.90M648.20M1.88B1.18B
Total Debt6.03B5.52B5.72B5.84B3.89B3.66B
Total Liabilities9.17B8.71B8.93B9.12B6.35B6.30B
Stockholders Equity6.78B6.66B7.03B5.92B4.97B4.39B
Cash Flow
Free Cash Flow1.23B1.19B1.38B1.37B833.80M893.30M
Operating Cash Flow1.60B1.52B1.74B1.65B1.10B1.06B
Investing Cash Flow-612.39M-530.62M-580.70M-3.52B-169.00M-469.20M
Financing Cash Flow-893.95M-862.79M-1.08B694.90M-190.00M-736.80M

Sika Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price23.92
Price Trends
50DMA
22.30
Negative
100DMA
20.76
Positive
200DMA
19.76
Positive
Market Momentum
MACD
-0.12
Positive
RSI
41.81
Neutral
STOCH
17.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXYAY, the sentiment is Neutral. The current price of 23.92 is above the 20-day moving average (MA) of 23.15, above the 50-day MA of 22.30, and above the 200-day MA of 19.76, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SXYAY.

Sika Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$77.86B29.2962.12%0.99%5.76%7.42%
69
Neutral
$12.55B18.9520.93%2.20%6.66%-3.58%
66
Neutral
$35.59B28.0715.48%1.30%4.70%
65
Neutral
$2.66B14.499.16%1.94%-0.57%81.10%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
$3.16B60.582.77%2.42%-1.39%
60
Neutral
$23.23B14.8919.47%2.75%1.47%23.56%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SXYAY
Sika
22.14
0.14
0.65%
ASH
Ashland
69.06
20.57
42.41%
FUL
H.B. Fuller Company
49.41
-10.29
-17.23%
PPG
PPG Industries
104.52
-2.18
-2.04%
RPM
RPM International
98.37
-20.38
-17.17%
SHW
Sherwin-Williams Company
320.73
-22.42
-6.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2026