Trade the Sika share!
SIKA

Analysis before buying or selling Sika shares

Trade the Sika share!
BUY   SELL
79% of retail CFD accounts lose money - eToro.com
 
Chart provided by Tradingview

If you are considering buying Sika stock or starting to trade on its online price, we suggest that you discover, through this article, how it will be possible for you to perform good analysis of its price. We are going to provide you with the information that will be most useful to you in this context, including the precise activities of this company as well as its sources of profit, its main competitors on the market or even some recent partnerships or its main strengths and weaknesses. We will also take a closer look at the fundamental analysis of this stock and the elements to follow in order to achieve it.

Elements to consider before selling or buying Sika shares

Analysis N°1

In particular, the operations that the Sika Group will implement in order to position itself more effectively in the emerging markets, including Eastern Europe, South America, the Middle East and South Asia, will be monitored with a view to improving its growth prospects in the more or less long term.

Analysis N°2

Strategic operations aimed at improving the Group's market share and positioning in certain segments, including acquisitions and equity investments, will also have an influence on its growth and should be closely monitored.

Analysis N°3

The foreign exchange market and fluctuations in the value of the Swiss franc against other major currencies should also be closely monitored as these movements can have a strong influence on the company's international sales.

Analysis N°4

Of course, the competition to the Sika Group has been very strong in this sector over the last few years, and in particular the competitors who offer innovative and more effective products than those of Sika.

Analysis N°5

Finally, as Sika's business is closely linked to global economic growth, indicators of crisis or recovery that could influence demand, particularly in the euro zone, should be monitored.

Trade the Sika share!
79% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro

General presentation of Sika

We will now try to deepen your knowledge about Sika by giving you a complete overview of the company and its various businesses and revenue streams. This will give you a better understanding of its future challenges and threats and how it can accelerate its growth.

The Sika Group is a Swiss company specializing in the chemical industry. More specifically, the company is currently the world's leading manufacturer and seller of construction chemicals.

In order to better understand the activities of the Sika Group, they can be divided into different divisions according to the share of sales they generate and in this way:

  • First of all, construction chemicals account for the bulk of the company's revenues, generating 81.7% of its turnover. These include concrete and mortar additives, repair mortars, reinforcement and sealing products and sealants.
  • Next come chemicals for industrial manufacturing, which account for 18.3% of the company's turnover. These include bonding and sealing products such as polyurethanes, adhesives and butyls, mainly for the automotive, rail and shipbuilding industries.

It is also interesting to know the geographical distribution of the Sika Group's revenues, which only generate 4.6% of its sales in Switzerland and 9.1% in Germany, 29.6% in Europe Middle East Africa, 18.2% in the United States, 7.1% in the Americas, 21.5% in Asia Pacific and 9.9% in the rest of the world.

Analysis before buying or selling Sika shares
Trade the Sika share!
79% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro

The major competitors of Sika

Let us now take a closer look at the main competitors that the Sika Group faces in its development and in its business sector with a presentation of the main players in this sector.

BASF 

First of all, the German chemical group BASF is currently the largest chemical group in the world. It was founded by Frederic Eneglhorn and its name is the abbreviation of Fabrique d'aniline et de soude de Bade in French. Its headquarters are located in Ludwigshafen on the Rhine in Germany. It covers a total area of more than 10 km2 and employs more than 34,000 people in the development, testing, manufacture and sale of several thousand products, many of which are used in the construction industry.

LyondellBasell

This American multinational company is located in Houston, Texas. It is a petrochemicals company that also offers specialty chemicals for the construction industry, among other sectors.

Saint-Gobain 

Finally, the third largest competitor to Sika is the French company Saint-Gobain, which specialises in the production, processing and distribution of materials. The company was founded in 1665 and today has 171,000 employees in more than 68 countries around the world.


The major partners of Sika

While Sika has a few major enemies in the market, it also regularly enters into strategic partnerships with other companies. To better understand the value of these operations, we propose to discover here two concrete examples of this type of partnership.

CiDRA

First and foremost, the group recently expanded its partnership with CiDRA Concrete Systems Inc., located in Eden Prairie, Minnesota, as part of a final investment to complete its global relationship. This company specializes in digital information technology-based systems for monitoring concrete properties during transport. Sika and CiDRA already offer this service in the US and Canada and are now targeting other countries. The partnership between the two companies will see the launch of this data service in 2019 and will then be extended to other countries so that concrete producers outside these two territories can also have access to it.

Sunova

Finally, another partnership has been established by Sika's subsidiary Sika Sarnafil with Sunova, a specialist in photovoltaic roofing systems. The two companies will collaborate on the launch of Sunova MCG 1.1 photovoltaic roofing systems in France. This system allows the installation of high efficiency solar panels on roofs waterproofed with Silka-Sarnafil membranes by qualified and trained companies. It is designed for low slopes up to 17% and allows for quick and easy installation of semi-integrated photovoltaic panels and renovation of industrial buildings.

Trade the Sika share!
79% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro
Positive factors for Sika shares
The factors in favour of a rise in the Sika share price:

To conclude this article, we propose you to discover what are the advantages and disadvantages of the Silka share, in other words, the main strengths and weaknesses of this company compared to the competition.

Firstly, here is a summary of the advantages that the Silka Group has at its disposal at the moment:

  • First of all, we would like to emphasize the important size of this company, which employs more than 15,000 people in more than 76 different countries around the world.
  • Silka's current focus on energy efficiency and cost effectiveness also provides it with a stable and large customer base.
  • The Group's annual order book is also stable with consistent and strong sales over time.
  • The group also has a particularly efficient research and development department and a distribution department located in Baar, Switzerland.
  • Finally, the company's last advantage is its very strong presence in the European market, where it is currently the leader in construction chemistry products.
Negative factors for Sika shares
The factors in favour of a drop in the Sika share price:

It goes without saying that the Sika Group also has its weak points, which we would like to explore in more detail:

  • First of all, it is regrettable that the group is still too dependent on its building materials segment. Indeed, this strong dependence has prevented the group from developing in the industrial sector throughout the world.
  • Finally, Sika's second biggest flaw is its inconsistent market share. Indeed, it is particularly variable and has seen many ups and downs in recent years due to aggressive competition.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the largest shareholders of the Sika Group today?

Currently, a significant part of Sika's capital is owned by large shareholders. These include the competitor Saint-Gobain with 10.7% of the shares, Cascade Investment with 5.70% of the shares, Capital Research & Management with 3.37% of the shares, Norges Bank Investment management with 3.20%, BlackRock Investment management with 3.11%, Massachusetts Financial Services with 2.72%, The vanguard Group with 2.60%, Fidelity Management & Research with 1.59% and OppenheimerFunds with 1.59%.

Where can I find Sika news and financial reports?

You can consult all the news and the annual and quarterly financial reports directly from the official website of this company in the section reserved for shareholders and investors. You will also find important communications from the group about its strategic operations or details of its strategic growth plans. Of course, you can also find important news about the company on your broker's newsfeed or on specialized websites.

How to anticipate future changes in the Sika share price?

If you want to know how the Sika share is likely to perform in the coming months or years, or even in the shorter term, you need to carry out relevant analyses of this stock using several methods. Amongst the most frequently used analyses by investors are technical analysis, which is based on the study of charts and their indicators, and fundamental analysis, which focuses on the most impactful events and news.

Trade the Sika share!

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.