The stock of the week: SIG: The green packaging solutions from Switzerland
SIG has committed to reach net-zero greenhouse gas emissions across its value chain by 2050.
July 2023: SIG
SIG: The green packaging solutions from Switzerland
SIG has committed to reaching net-zero greenhouse gas emissions across its value chain by 2050.
SIG Group AG engages in the provision of systems and solutions for aseptic packaging.1 It is the only system supplier covering carton, pouche, and bag-in-box. SIG's sustainable, innovative and versatile packaging solutions are distributed in over 100 countries. The company has over 9,000 employees. In June 2023, it celebrated its 170th anniversary. SIG is headquartered in Neuhausen, Switzerland.2
On July 13, 2023, SIG received approval for its group-wide Net-Zero science-based target from the Science Based Targets initiative (SBTi), committing to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050. Of the 2,000+ companies, which have officially given the net-zero pledge, SIG is among the first 325 companies to have its target validated by the SBTi.3
At the beginning of May 2023, SIG announced its figures for the first quarter of 2023. The company continues to grow with revenues increasing by approximately 45% to EUR 729 million in the first quarter of 2023 compared to the same quarter last year (EUR 496.7 million) and a stable EBITDA margin of 24%.4 SIG pursues a stable dividend policy. The expected dividend yields for the financial years 2023, 2024 and 2025 are 1.96%, 2.18% and 2.35%, respectively.5
Here is how the bank analysts and the professional press currently view the stock:6
The professional social media sentiment is neutral for both the company and the broad Swiss Stock Market Index SPI. The sentiment for the sector is slightly positive.
Currently, there is barely any attention buzz around the company.
The bank analysts’ consensus is a “buy”. Out of 13 analysts covering the stock, 10 recommend buying the stock, 3 recommend holding it, and no analyst suggests selling it. The median upside potential of the stock price, expected by the analysts over the next 6-12 months, is currently around X% (reference price close of business 17/07/2023).
Sources:
1. SIG Group Ltd | CH0435377954 | 43537795 | UMushroom
2. SIG Combibloc Gruppe | Nachhaltige Verpackungslösungen
3. SIG’s path to Net-Zero approved by the Science Based Targets initiative (SBTi)
4. Solid start to the year with margin recovery underway (sig.biz)
