Morningstar | Steady As She Goes for SGS in 2019
While narrow-moat SGS reports only semiannually, the latest updates from close peers Bureau Veritas and Intertek would suggest the direction of travel so far in 2019 is in line with our forecasts. Both companies reported organic revenue growth of about 4%, driven by a pick-up in industrial focused areas where the decline in commodity prices over the last few years had a negative effect. The combination of a shift toward operating expenditure activities and an improvement in clients’ capital expenditures project outlook have helped improve performance in these areas, reducing the drag on group revenues. We maintain our forecasts and our CHF 2,340 fair value estimate. We believe the share price is currently up with events.SGS has been moving continually up the value chain in terms of its service offerings. This shift has been enabled to a large degree by the company’s strategy of buying specialist service providers through bolt-on acquisitions. These services are then integrated with SGS’s existing portfolio, allowing them to offer a broader and more sophisticated range of services to clients. The latest example of this is PT WLN in Indonesia, a company that provides water, soil and air testing; and TEC services in the USA, a company that provides engineering testing and consulting services to the increasingly sophisticated construction industry.
SGS is engaged in the provision of inspection, verification, testing, certification and quality assurance services. Co.'s business lines include: Agricultural; Minerals; Oil, Gas & Chemicals; Life Science; Consumer Testing; Systems & Services Certification; Industrial; Environmental; Automotive; and Governments & Institutions. As of Dec 31 2014, Co.'s geographic operations were organized as follows: Europe, Africa, Middle East (Western Europe, Northern and Central Europe, Southern Central Europe, Eastern Europe & Middle East, and Africa); Americas (North America, and South America); and Asia Pacific (East Asia, China & Hong Kong, and South Eastern Asia & Pacific).
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.