Sika AGXSWX:SIKA +1.20%84 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates XSWX:SIKA with a GF Score™ of 84/100 and a GF Value™ of CHF240.78 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,571 Chemicals companies, Sika AG ranks better than 99.87% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sika AG's annualized net income for the quarter that ended in Dec. 2025 was CHF980 Mil. Sika AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF-1,538 Mil. Therefore, Sika AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Sika AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:SIKA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 32.41 Med: 50.4 Max: 309.59
Current: Negative Tangible Equity
During the past 13 years, Sika AG's highest Return-on-Tangible-Equity was 309.59%. The lowest was 32.41%. And the median was 50.40%.
XSWX:SIKA's Return-on-Tangible-Equity is ranked better than 99.87% of 1571
companies
in the Chemicals industry
Industry Median: 5.7
vs XSWX:SIKA: Negative Tangible Equity
Sika AG (XSWX:SIKA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sika AG Return-on-Tangible-Equity Related Terms
Sika AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sika AG's Return-on-Tangible-Equity 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-Equity Comparison
For the Specialty Chemicals subindustry, Sika AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sika AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sika AG's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Sika AG (XSWX:SIKA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sika AG and its competitors. Over the past decade, Sika AG's Return-on-Tangible-Equity has ranged from 32.41 to 309.59. According to the industry distribution chart, Sika AG ranks #2 out of 1571 companies in the Chemicals industry, placing it in the top 0.099999999999994%.
Is Sika AG's Return-on-Tangible-Equity too high?
Sika AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 32.41 to a high of 309.59. Based on the distribution chart, Sika AG ranks #2 out of 1571 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 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sika AG's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sika AG ranks #2 out of 1571 companies for Return-on-Tangible-Equity. This places Sika AG in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.70. Historically, Sika AG's own Return-on-Tangible-Equity has ranged from 32.41 to 309.59 over the past decade. 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-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,571 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sika AG and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sika AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 CHF240.78, compared to a current price of CHF168.75 — trading 29.9% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Sika AG's overall GF Score™ is 84/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sika AG (XSWX:SIKA), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 CHF168.75 is trading 29.9% below its estimated GF Value™ of CHF240.78.
GuruFocus considers Sika AG to be Significantly Undervalued.
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.
84GF Score
Get the complete analysis for XSWX:SIKA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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