Sika AGXSWX:SIKA -5.09%83 Return-on-Tangible-Asset is 13.40% as of Dec. 2025, which is 10% below its 10-year median of 14.97. GuruFocus rates XSWX:SIKA with a GF Score™ of 83/100 and a GF Value™ of CHF240.79 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,609 Chemicals companies, Sika AG ranks better than 94.28% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Sika AG's annualizedNet Income for the quarter that ended in Dec. 2025 was CHF980 Mil. Sika AG's average total tangible assets for the quarter that ended in Dec. 2025 was CHF7,317 Mil. Therefore, Sika AG's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 13.40%.
The historical rank and industry rank for Sika AG's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:SIKA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.14 Med: 14.97 Max: 17.55
Current: 14.24
During the past 13 years, Sika AG's highest Return-on-Tangible-Asset was 17.55%. The lowest was 14.14%. And the median was 14.97%.
XSWX:SIKA's Return-on-Tangible-Asset is ranked better than 94.28% of 1609
companies
in the Chemicals industry
Industry Median: 3.07
vs XSWX:SIKA: 14.24
Sika AG (XSWX:SIKA) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Sika AG Return-on-Tangible-Asset Related Terms
Sika AG Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Sika AG's Return-on-Tangible-Asset 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.
XSWX:SIKA vs LIN, SHW, ECL: Return-on-Tangible-Asset Comparison
For the Specialty Chemicals subindustry, Sika AG's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sika AG Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sika AG's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sika AG's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 13.40% mean?
Sika AG (XSWX:SIKA) has a Return-on-Tangible-Asset of 13.40% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sika AG and its competitors. This is 10% below median its historical median of 14.97. Over the past decade, Sika AG's Return-on-Tangible-Asset has ranged from 14.14 to 17.55. According to the industry distribution chart, Sika AG ranks #92 out of 1609 companies in the Chemicals industry, placing it in the top 5.7%.
Is Sika AG's Return-on-Tangible-Asset too high?
Sika AG's current Return-on-Tangible-Asset of 13.40% is 10% below median its 10-year median of 14.97. Over the past 10 years, this metric has ranged from a low of 14.14 to a high of 17.55. The Chemicals industry median Return-on-Tangible-Asset is 3.07. Sika AG's value of 13.40% is 336.5% above this industry median. Based on the distribution chart, Sika AG ranks #92 out of 1609 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sika AG has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sika AG's Return-on-Tangible-Asset compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sika AG ranks #92 out of 1609 companies for Return-on-Tangible-Asset. This places Sika AG in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.07. Sika AG's value of 13.40% is 336.5% above this benchmark. Historically, Sika AG's own Return-on-Tangible-Asset has ranged from 14.14 to 17.55 over the past decade. While the company's 10-year median is 14.97 vs. the industry median of 3.07, Sika AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.07, based on 1,609 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sika AG's current Return-on-Tangible-Asset of 13.40% is 336.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sika AG and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sika AG's current Return-on-Tangible-Asset is 13.40%, which is 10% below median its own 10-year median of 14.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sika AG stock overvalued right now?
Based on GuruFocus' analysis, Sika AG (XSWX:SIKA) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF240.79, compared to a current price of CHF162.25 — trading 32.6% below its estimated fair value. The current Return-on-Tangible-Asset is 13.40%, which is 10% below median its 10-year median of 14.97 and 336.5% above the Chemicals industry median of 3.07. Sika AG's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Sika AG (XSWX:SIKA), the current Return-on-Tangible-Asset is 13.40% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sika AG (XSWX:SIKA) Overvalued in 2026?
Based on GuruFocus' analysis, Sika AG stock appears to be undervalued.
The current stock price of CHF162.25 is trading 32.6% below its estimated GF Value™ of CHF240.79.
GuruFocus considers Sika AG to be Significantly Undervalued.
Key valuation signals for XSWX:SIKA:
Return-on-Tangible-Asset: 13.40% (10% below median its 10-year median of 14.97)
GF Value™: CHF240.79 vs. price of CHF162.25 (32.6% below fair value)
Industry Position: 336.5% above the Chemicals median (#92 of 1609)
No single metric tells the full story. See the XSWX:SIKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1910, Sika produces specialty chemicals primarily used by the construction sector (85% of sales). Its products are mainly used for bonding, sealing, reinforcing, and protecting in the construction and automotive industries. Approximately 70% of its products have a positive impact on sustainability for customers. Sika has a global manufacturing footprint of more than 400 factories spread across over 100 countries.
83GF Score
Get the complete analysis for XSWX:SIKA
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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