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SIG Group AG

SIGCY
41
Packaging & Containers · Consumer Cyclical
Price
$17.15
+0.58 (+3.50%)
Market Cap
$6.63B
Exchange
Other OTC
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+13.9% over 4y

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

Diluted shares outstanding: 335.7M (2021) → 382.2M (2025)

SIG Group AG is a Swiss company that makes carton packaging systems used to store and ship food and drinks. Its main products are aseptic carton packs — the kind used for juice, milk, soup, and other liquid foods that need to stay fresh without refrigeration. SIG sells its packaging machines and cartons to food and beverage companies around the world, competing in the same space as Tetra Pak.

SIG makes money by selling both the filling machines and the cartons that run through them, creating a recurring revenue stream as customers keep buying cartons over time. The company operates across Europe, Asia, the Middle East, and Africa, with growing exposure to emerging markets where demand for shelf-stable food packaging is rising. Its installed base of machines creates some customer stickiness, but thin operating margins and high debt from past acquisitions leave limited room for error if volumes slow or input costs rise.

Winston Score History

Growth Profile

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

Revenue Growth

-5.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-264.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$68M/ year

2.2% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

18.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$365M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

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

Revenue declining

SIG Group AG's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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

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Quality

Gross Margin
8.8%
Thin — 8.8% gross margin
Operating Margin
-4.8%
Losing money on operations — -4.8%
ROCE
-1.7%
Weak — -1.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+9.2%
Steady sales growth (9.2% YoY)
EPS YoY
-62.8%
Earnings shrinking (-62.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
1069%
Turns 1069% of profit into real cash
FCF Margin
8.5%
Modest free cash flow (8.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.82
Moderate — manageable debt (0.82)
Interest Cover
3.06x
Tight — interest eats into profit (3.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
61.3x
Expensive — P/E 61.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+39.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (61.3 → 21.8)

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Dividends

Not applicable for this business.
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