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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's recent performance has been positively driven by favorable market sentiment and potential undervaluation. According to a recent report, the company is potentially undervalued, which may have contributed to increased investor interest. Additionally, an intrinsic calculation suggests that SIG Group's fair value is estimated to be CHF16.81, indicating a possible upside. The company's recent earnings growth has also been a positive factor, although it has not yet translated to long-term shareholder returns.

1.c. Company Highlights

2. SIG Group's 2025 Earnings: A Challenging Year with Mixed Results

SIG Group reported revenue of EUR 3.25 billion for the full-year 2025, a 2.4% decline compared to the previous year due to a stronger euro. At constant currency and constant resin, revenue growth was 0.1%, below the company's previous guidance. The adjusted EBITDA margin was 22.1%, and the adjusted EBIT margin was 13.6%. The actual EPS came out at '0.2227', lower than the estimated '0.2897'. The company's free cash flow was EUR 191 million, a decrease from EUR 290 million in the previous year.

Publication Date: Mar -04

📋 Highlights

Segment Performance

The aseptic carton revenue grew 1.2% in 2025, driven by a strong performance in the Americas, while chilled carton revenue declined 5.3% due to competitive pressures in China. The bag-in-box and spouted pouch business saw a 3.4% decline. The Americas region recorded the highest growth in 2025, with 4.4% revenue growth at constant currency. Europe saw a decline of 0.8% at constant currency, but showed a 4% growth in the fourth quarter.

Guidance and Outlook

For 2026, SIG expects revenue growth on a constant currency and constant resin basis to be flat to 2%. The company aims to improve its EBIT margin, excluding nonrecurring charges, to a range of 15.7% to 16.2%. The midterm financial guidance includes revenue growth of 3% to 5% per year, EBIT margin above 16.5%, and net CapEx of 6% to 8% of revenue. Analysts estimate next year's revenue growth at 3.6%.

Valuation Metrics

To understand what's priced in, we can look at the company's valuation metrics. The P/E Ratio is 25.31, P/B Ratio is 1.81, and P/S Ratio is 1.52. The EV/EBITDA is 10.01, and the Free Cash Flow Yield is 5.5%. The Net Debt / EBITDA is 3.26, which is in line with the company's net leverage ratio of 3x at the end of 2025. As per Ann-Kristin Erkens, the expected free cash flow for 2026 is slightly above EUR 400 million, which could positively impact the company's valuation.

Operational Highlights

The company has implemented several initiatives to improve its performance, including the placement of 68 new fillers and the introduction of the Neo line, which features a low waste rate and can process Alu-free full barrier sleeves. SIG has also received the EcoVadis platinum status for the seventh time with a record score of 99 out of 100.

3. NewsRoom

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SIG Group AG's (VTX:SIGN) recent 4.8% pullback adds to one-year year losses, institutional owners may take drastic measures

Jan -21

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Is SIG Group AG (VTX:SIGN) Potentially Undervalued?

Jan -07

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Positive earnings growth hasn't been enough to get SIG Group (VTX:SIGN) shareholders a favorable return over the last five years

Dec -18

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

Oct -23

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

Aug -27

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

Jul -28

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

Oct -29

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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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mayr-Melnhof Karton

A-Score: 5.6/10

Value: 8.3

Growth: 5.3

Quality: 4.4

Yield: 3.8

Momentum: 5.0

Volatility: 6.7

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Viscofan

A-Score: 5.5/10

Value: 4.4

Growth: 5.1

Quality: 7.3

Yield: 6.2

Momentum: 1.0

Volatility: 8.7

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Amcor

A-Score: 5.4/10

Value: 5.6

Growth: 3.3

Quality: 5.3

Yield: 8.8

Momentum: 1.5

Volatility: 8.0

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Ardagh Metal Packaging

A-Score: 5.0/10

Value: 6.2

Growth: 4.9

Quality: 2.7

Yield: 10.0

Momentum: 4.0

Volatility: 2.0

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SIG

A-Score: 3.8/10

Value: 5.2

Growth: 5.3

Quality: 3.9

Yield: 5.6

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Metsä Board

A-Score: 3.2/10

Value: 5.8

Growth: 1.2

Quality: 2.1

Yield: 6.2

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.95$

Current Price

11.95$

Potential

-0.00%

Expected Cash-Flows