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SGS S.A.

SGSOY
54
Consulting Services · Industrials
Price
$11.36
+0.16 (+1.43%)
Market Cap
$22.04B
Exchange
Other OTC
Winston Score
54
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Sep 8, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
Growth
Mixed
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good
Dividends
Mixed

Share count rising — dilution

+2.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.88B (2021) → 1.93B (2025)

§Winston Score History

The full picture

SGS S.A. is a leading global company specializing in inspection, verification, testing, certification, and quality assurance services. Its extensive operations span across Europe, Africa, the Middle East, the Americas, and the Asia Pacific region. The organization structures its diverse offerings into five core segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources, and Knowledge. The company provides a wide array of services, including laboratory analysis, detailed product inspection, expert consulting, process assessment, and both technical and transactional support. It also delivers cutting-edge digital solutions, such as cybersecurity, Internet of Things (IoT) integration, digital platform development, and mobile application services. Furthermore, SGS offers tailored testing, inspection, and certification solutions for critical sectors like crop science, food, health science, and cosmetics and hygiene. Its capabilities extend to on-site field services, comprehensive technical assessments, and advisory support. The firm is also involved in services concerning industrial operations, public health and safety, environmental testing, and fulfilling public mandates. Additional services encompass various certification programs, professional training, supply chain integrity assurance, specialized technical consulting, and ESG (Environmental, Social, and Governance) assurance. SGS also provides solutions in laboratory outsourcing, commodities logistics, geochemistry, metallurgy, sustainability guidance, and market intelligence. SGS serves a broad and diverse client base across numerous industries, including agriculture and food, chemicals, construction, consumer goods and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, the public sector, and transportation. Established in 1878, SGS S.A. maintains its global headquarters in Geneva, Switzerland.

Growth Profile

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

Revenue Growth

+9.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

CHF 0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

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

Growth context

SGS S.A. is growing revenue at 10% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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
18.8%
Strong — 18.8% 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
+5.5%
Slow sales growth (+5.5% YoY)
Profit growth
EPS YoY
+3.0%
Modest earnings growth (+3.0% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
193%
Turns 193% of profit into real cash
Spare cash per sale
FCF Margin
14.0%
Converts sales into free cash efficiently (14.0%)

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
10.68x
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)
33.4x
Pricey — P/E 33.4

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

Cheaper or dearer next year
P/E vs Forward
+12.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (33.4 → 21.3)

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Dividends

Dividend
Dividend Yield
3.58%
Moderate income — 3.58% yield

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

Dividend record
Dividend Growth
-39.5%
Dividend cut (-39.5% YoY) — warning sign

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