SGS S.A.

SGSN.SW

Consulting Services · Industrials

Also trades as: 0QMI.L

Exchange

SIX Swiss Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Exceptional

Stability

Mixed

Valuation

Good

Dividends

Mixed

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Winston Score History

The full picture

SGS S.A. is a Swiss company that tests, inspects, and certifies products and systems for businesses around the world. If a food company wants to prove its products are safe, or a factory needs to show its equipment meets safety standards, SGS sends in experts to check and issue official certificates. It is one of the largest testing and certification companies in the world, serving industries like food, oil and gas, mining, consumer goods, and healthcare.

SGS makes money by charging fees each time it performs an inspection, runs a lab test, or issues a certification. It operates in over 140 countries with thousands of labs and offices, giving it a global reach that is very hard for smaller competitors to match. The company's main moat is its trusted reputation and accreditations, which take years to build. The key risk is that economic slowdowns can reduce client demand for discretionary testing services, while stricter global regulations could act as a long-term growth driver.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+115.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+92.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

14.6%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

CHF 1.3B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

SGS S.A. grew revenue 115% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

36.6%

Modest — 36.6% gross margin

Profit after running costs

Operating Margin

14.0%

Healthy — 14.0% operating margin

Return on the money invested

ROCE

18.6%

Strong — 18.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+39.4%

Fast-growing sales (+39.4% YoY)

Profit growth

EPS YoY

+37.5%

Earnings growing fast (+37.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

189%

Turns 189% of profit into real cash

Spare cash per sale

FCF Margin

13.8%

Converts sales into free cash efficiently (13.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

4.75

Heavy debt load (4.75)

Covers its interest

Interest Cover

10.69x

Comfortably covers interest (10.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

27.2x

no trend

Growth-priced — P/E 27.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+5.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (27.2 → 21.8)

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Dividends

Dividend

Dividend Yield

3.31%

no trend

Moderate income — 3.31% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

-71.9%

no trend

Dividend cut (-71.9% YoY) — warning sign

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