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SGS AG (LTS:0QMI) Preferred Stock : CHF0 Mil (As of Jun. 2024)


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What is SGS AG Preferred Stock?

Preferred stock is a special equity security that has properties of both equity and debt. SGS AG's preferred stock for the quarter that ended in Jun. 2024 was CHF0 Mil.

The market value of preferred stock needs to be added to the market value of common stocks in the calculation of Enterprise Value. SGS AG's Enterprise Value for the quarter that ended in Jun. 2024 was CHF18,208 Mil.

In the calculation of book value, the par value of preferred stocks needs to subtracted from total equity. SGS AG's Book Value per Share for the quarter that ended in Jun. 2024 was CHF3.16.

Dividends paid to preferred stocks need to be subtracted from net income in the calculation of Earnings per Share (Diluted). SGS AG's Earnings per Share (Diluted) for the six months ended in Jun. 2024 was CHF1.43.


SGS AG Preferred Stock Historical Data

The historical data trend for SGS AG's Preferred Stock can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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SGS AG Preferred Stock Chart

SGS AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Preferred Stock
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SGS AG Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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SGS AG Preferred Stock Calculation

Preferred Stock is a special equity security that has properties of both equity and debt. It is generally considered a hybrid instrument. Preferred stock is senior to common stock, but is subordinate to bonds in terms of claim or rights to their share of the assets of the company.

Preferred stock has priority over common stock in the payment of dividends and any payments received when a company liquidates.

Preferred stock comes in many forms. It can be:


Convertible or Non-Convertible
Cumulative or Non-Cumulative
Voting or Non-Voting
Callable or Non-Callable
Maturity Date or No Maturity Date

A preferred stock without a maturity date is called a perpetual preferred stock. These are relatively rare. A good example of perpetual preferred stock is the many series of Public Storage (PSA) preferred shares that trade on the New York Stock Exchange.

Before investing in preferred stock, it is important to know which of the above groups the stock belongs to. Is it convertible or non-convertible? Are dividends cumulative or non-cumulative?

It is also critical that an investor knows what bonds the company has in front of the preferred stock. Bondholders get paid first. So the decision to buy a preferred stock can be similar to the decision to buy a bond. But, remember, the preferred stock of a company with bonds is junior to those bonds.

Unless a preferred stock is convertible, the upside in a preferred stock investment is more limited than in a common stock investment. If a company doubles its earnings, it is usually under no more obligation to double the dividends paid to preferred shareholders than it is to double the interest paid to its bankers and bondholders.So preferred stock is very different from common stock.


SGS AG  (LTS:0QMI) Preferred Stock Explanation

When a company needs capital but does not wish to issue debt, they may sell preferred stocks to investors.

For instance, during the financial crisis of 2008, Goldman Sachs (GS) issued a combination of preferred stock and common stock options for $5 billion of capital to Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B). In this deal, Berkshire Hathaway paid $5 billion for 10% cumulative perpetual preferred stock and warrants to buy 43.5 million shares of Goldman Sachs at $115 a share. Goldman Sachs bought back the preferred in 2010. Guess how much money Warren Buffett made in this deal in two years? Read How Much Did Warren Buffett’s Berkshire Hathaway (BRK.B) Make on Its Goldman Sachs (GS) Preferred Stock?

1. The market value of Preferred Stocks needs to be added to the market value of common stocks in the calculation of enterprise value.

SGS AG's Enterprise Value for the quarter that ended in Jun. 2024 is calculated as

2. In the calculation of Book Value, the par value of Preferred Stocks needs to subtracted from total equity.

SGS AG's Book Value per Share for the quarter that ended in Jun. 2024 is calculated as

3. Dividends paid to Preferred Stocks need to be subtracted from net income in the calculation of earnings per share.

SGS AG's Earnings per Share (Diluted) (EPS) for the six months ended in Jun. 2024 is calculated as

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


SGS AG Preferred Stock Related Terms

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SGS AG Business Description

Address
1 Place des Alpes, P.O. Box 2152, Geneva, CHE, CH-1211
Switzerland-listed SGS is the largest and one of the oldest companies in the testing, inspection, and certification industry. The company's primary activities involve testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure global/company standards. SGS is one of only four TIC companies that operate globally across numerous industries, including agriculture, food and life science, and transport services. SGS was first listed in 1981 and employs almost 100,000 people worldwide.

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