SIG Group AG (SIGN.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

SIG Group AG provides aseptic carton packaging systems and solutions for beverage and liquid food products.The company provides aseptic carton packaging filling machines, aseptic carton packaging sleeves, and closures, as well as spare parts, maintenance, digital, add-on, training, and other services.It primarily operates in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.

The company was formerly known as SIG Combibloc Group AG and changed its name to SIG Group AG in April 2022.SIG Group AG was founded in 1853 and is headquartered in Neuhausen am Rheinfall, Switzerland.

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1.b. Last Insights on SIGN

SIG Group AG faced challenges due to unfavorable business conditions. Despite an intrinsic calculation suggesting the stock is 48% undervalued, with a projected fair value of CHF16.81, recent earnings releases have not provided significant positive momentum. There have been no recent announcements on new product launches, acquisitions, or divestitures that could alter the company's trajectory. Additionally, no share buyback programs have been publicly disclosed, which could have provided a boost to shareholder value. Rating agencies have not recently updated their assessments.

1.c. Company Highlights

Last Price	9.36
Change Percentage	-0.27%
Open	9.36
Previous Close	9.38
Market Cap ( Millions)	3578
Volume	261444
Year High	20.84
Year Low	7.68
M A 50	8.62
M A 200	13.64

FCF Yield	7.30%
Dividend Yield	5.24%
ROE	6.76%
Debt / Equity	96.12%
Net Debt / EBIDTA	325.99%
Price To Book	1.36
Price Earnings Ratio	19.06
Price To FCF	13.69
Price To sales	1.15
EV / EBITDA	8.34

2. Transcript Summary

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3. NewsRoom

An Intrinsic Calculation For SIG Group AG (VTX:SIGN) Suggests It's 48% Undervalued

Oct -23

Source:

Is SIG Group AG's (VTX:SIGN) Stock Price Struggling As A Result Of Its Mixed Financials?

Aug -27

Source:

With 58% ownership, SIG Group AG (VTX:SIGN) boasts of strong institutional backing

Jul -28

Source:

Shareholders in APG|SGA (VTX:APGN) are in the red if they invested five years ago

Oct -29

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Carton, Bag-In-Box and Spouted Pouches

Expected Growth: 5%

SIG Group AG's Carton, Bag-In-Box, and Spouted Pouches growth is driven by increasing demand for sustainable packaging, rising popularity of e-commerce, and growing need for convenient and portable packaging solutions. Additionally, the shift towards premiumization and product differentiation in the beverage and food industries also contribute to the growth.

Filling Line and Other Related Equipment

Expected Growth: 3%

SIG Group AG's Filling Line and Other Related Equipment segment growth is driven by increasing demand for sustainable packaging, rising adoption of automation in the food and beverage industry, and growing need for efficient production lines. Additionally, the company's focus on innovation and expansion into emerging markets contributes to its growth.

Service

Expected Growth: 2%

SIG Group AG's service segment growth is driven by increasing demand for sustainable packaging solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, digitalization, and customer-centric approach have contributed to its growth. Furthermore, the rising trend of e-commerce and the need for efficient supply chain management have also fueled the segment's growth.

Other

Expected Growth: 1%

SIG Group AG's 'Other' segment growth is driven by increasing demand for sustainable packaging solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, particularly in digital printing and e-commerce enablement, has contributed to its growth. Furthermore, SIG's diversified customer base and long-term contracts have provided a stable source of revenue.

7. Detailed Products

SIG Combibloc

Aseptic carton packaging solutions for food and beverages

SIG Cartons

Carton packaging solutions for food and beverages

SIG Cups

Paper-based cups for hot and cold beverages

SIG Services

Consulting and engineering services for packaging solutions

SIG Technology

Innovative packaging machinery and equipment

8. SIG Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SIG Group AG is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers is low, as SIG Group AG has a diverse customer base and no single customer has a significant impact on the company's revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as SIG Group AG has a diverse supplier base, but some suppliers have a significant impact on the company's operations.

Threat Of New Entrants

The threat of new entrants is high, as the market is attractive and there are low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as the market is highly competitive and there are many players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	44.19%
Debt Cost	6.25%
Equity Weight	55.81%
Equity Cost	7.11%
WACC	6.73%
Leverage	79.16%

11. Quality Control: SIG Group AG passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Viscofan

A-Score: 5.9/10

Value: 4.5

Growth: 5.1

Quality: 7.2

Yield: 7.5

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Mayr-Melnhof Karton

A-Score: 5.4/10

Value: 7.4

Growth: 5.3

Quality: 4.4

Yield: 3.8

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

Ardagh Metal Packaging

A-Score: 5.2/10

Value: 6.4

Growth: 4.9

Quality: 2.7

Yield: 10.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

Amcor

A-Score: 4.8/10

Value: 4.8

Growth: 3.3

Quality: 3.2

Yield: 8.8

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

SIG

A-Score: 4.2/10

Value: 5.9

Growth: 5.3

Quality: 3.9

Yield: 6.2

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

Metsä Board

A-Score: 3.7/10

Value: 9.0

Growth: 1.1

Quality: 3.2

Yield: 5.6

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.73%

SIG Group AG - CH0435377954

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SIGN

1.c. Company Highlights

Less Volatile

Weak Momentum

Expensive

Revenues Miss

Average Yield

Average Growth

Earnings Miss

Stable Momentum

Medium Volatility

Average Quality

Earnings Beats

Revenues Beats

Fairly Valued

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Carton, Bag-In-Box and Spouted Pouches

Expected Growth: 5%

Filling Line and Other Related Equipment

Expected Growth: 3%

Service

Expected Growth: 2%

Other

Expected Growth: 1%

7. Detailed Products

SIG Combibloc

SIG Cartons

SIG Cups

SIG Services

SIG Technology

8. SIG Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SIG Group AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.36$

Current Price

9.36$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA