SGS S.A.

SGSN.SW

Consulting Services · Industrials

Also trades as: 0QMI.L

Price

CHF 96.68

-0.36 (-0.37%)

Market Cap

CHF 19.12B

Exchange

SIX Swiss Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 10, 2026 · filings through Jun 30, 2026

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: 187.5M (2021) → 193.0M (2025)

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.

Winston Score History

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

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

16.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

36.6%

Modest — 36.6% gross margin

Operating Margin

14.0%

Healthy — 14.0% operating margin

ROCE

8.9%

Below par — 8.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+39.4%

Fast-growing sales (+39.4% YoY)

EPS YoY

+37.5%

Earnings growing fast (+37.5% YoY)

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

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

189%

Turns 189% of profit into real cash

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

Debt / Equity

4.75

Heavy debt load (4.75)

Interest Cover

10.69x

Comfortably covers interest (10.7x)

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

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Valuation

P/E Ratio (TTM)

28.4x

Growth-priced — P/E 28.4

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

P/E vs Forward

+6.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (28.4 → 21.8)

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Dividends

Dividend Yield

3.31%

Moderate income — 3.31% yield

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

Dividend Growth

-71.9%

Dividend cut (-71.9% YoY) — warning sign

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