Following the ongoing price correction, the $SIKA (-5,05%) more attractive than before, but still faces challenges. Sika seems fundamentally intact and offers an attractive dividend history. The share is fairer after the correction, but still not cheap (historically yes, by sector comparison no)

-------------

Facts: 📑📄

The decline is primarily cyclical and currency-related, which hopefully signals a temporary pause in growth:

• Construction crisis: High interest rates slow down construction activity worldwide, therefore organic growth in H1 2025 only 0,6% (target corridor: 6-8%).
• Currency effects: Sika generates a significant portion of its sales in the USA (e.g. -4.3% foreign currency effect in H1 2025).
• Valuation + growth premium: The historically high growth momentum cannot be maintained in the short term, hence valuation too high - there are cheaper alternatives in the sector.

However, the operational quality and dividend stability appear intact (forecast 2025)

Dividend growth (Ø 10 yrs) ~12.25% p.a.

• Excellent: Confirms Sika as a dynamic dividend growth stock.

Current dividend yield ~2.08%

• Higher than historical average - buy signal due to correction?

Payout ratio (profit) ~45.2%

• Sustainable: Dividend is stably covered by profit, room for further growth.

EBITDA margin (H1 2025) 18.9%

• Strong pricing power: margin remains high despite sales pressure.

✅ Pro post-purchase (relatively attractive price)

• Expected recovery (growth price): The stock is pricing in strong earnings growth (EPS CAGR ~14.45% to 2027). The estimated P/E ratio 2027e is approx. 18.
• Buy quality: People are now buying the high-margin quality and market leadership at a discount to the highs.

❌ Contra subsequent purchase (high residual premium)

• P/E ratio 2025e: With an estimated P/E ratio of ~29 for 2025, Sika is still sportily valued compared to cyclical competitors.
• Persistent macro pressure: If the construction crisis persists for longer, the share could remain under pressure until growth returns.

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It sounds a bit like a first-time buy plus savings plan, doesn't it? 🤔

Does anyone else have an opinion on Sika?

$SIKA (-5,05%) is being punished and continues to fall steadily. This is mainly due to the strength of the Swiss franc, the weakness of the dollar and weakening sales... Hold/buy more? I already have a relatively large position in the red....

Construction in Ukraine, generally a clear investment backlog in the housing market and in my area in particular I simply can no longer avoid Sika products.

Probably one of the best brands in terms of quality, especially in the flooring sector, plus good strategic acquisitions.

Bank of America (BofA) has put together a basket of stocks to list the winners of the German infrastructure package.

The basket contains 14 stocks that the US bank expects to benefit in particular.

• The German technology group Siemens
  $SIE (+0,83%) (weighted at 10.3 percent, as of August 21)
• The French construction group Eiffage $FGR (-3,54%) (9 percent)
• The German building materials manufacturer Heidelberg Materials
  $HEI (+1,66%) (8.8 percent)
• The German energy technology group Siemens Energy $ENR (+1,83%) (8.6 percent)
• The German truck manufacturer Daimler Truck
  $DTG (+0,26%) (8.4 percent)
• The Italian building materials company Buzzi S.p.A.
  $BZU (-0,1%) (7.9 percent)
• The Swiss cement group Holcim $HOLN (+1,15%) (7.6 percent)
• The Swiss chemicals group Sika AG $SIKA (-5,05%)
  
  (7.4 percent)
• The German forklift manufacturer Kion
  $KGX (+0,85%) (6.7 percent)
• The French communications and energy company Spie $SPIE (-0,89%) (6.4 percent)
• The German industrial group Thyssen-Krupp $TKA (-1,86%) (6.4 percent)
• The German wind turbine manufacturer Nordex
  $NDX1 (-2,67%) (4.6 percent)
• The Swedish steel group SSAB $SSAB A (-0,11%)
  
  (4.1 percent)
• The German industrial services provider Bilfinger
  $GBF (+0,24%) (4.0 percent)

Hopes for the infrastructure package have already caused the shares to rise significantly in some cases in recent months. Since the beginning of the year, the shares included in the basket have risen by around 47 percent. BofA has been offering the share basket to its major clients since the beginning of July.

Despite the jump in the prices of many infrastructure stocks in the first half of the year, BofA manager Klein is confident that the stocks in the basket will continue to rise. According to him, it now depends on when the investments really show up in the profits of the companies.

Oliver Schneider, portfolio advisor at US asset manager Wellington, says: "In the past six to nine months, investor interest in infrastructure stocks has grown rapidly." This is particularly true for European investors.

He cites two factors that he believes will drive infrastructure stocks worldwide in the future. Firstly, there is a great need to modernize infrastructure. Secondly, the demand for electricity is growing due to artificial intelligence. Schneider says: "This is a growth topic that will be with us for the next ten to 20 years."

Source: Text (excerpt) & graphic, Handelsblatt 01.09.25

So 1.5 weeks have now passed. The first gimmicks are over and my Watchlist Pie has returned a total of 4.5% in one week. This has now been sold and I have built up a pie to save for the next 8-10 years. I'm starting with 50€ a week until I've completed the broker's test phase. After that I'll ramp it up to about 1k per month.

There are still a few stocks missing, but the big ones will be scaled down a bit. Among others $IREN (+4,18%) ....

What do you think of the selection?

$NVDA (+0,51%)
$GOOGL (+0,73%)
$MSFT (+0,5%)
$AVGO (+0,77%)
$005930
$AMD (+1,33%)
$TSLA (-0,03%)
$IBM (+0,69%)
$RKLB (+2,27%)
$NU (+0,96%)
$SMCI (+0,97%)
$HIMS (+2,29%)
$ENR (+1,83%)
$HOOD (+1,11%)
$PLTR (+0,43%)
$CSCO (+0,23%)
$MTX (-1,43%)
$TTD (+0,69%)
$QBTS (+3,76%)
$9866 (-1,57%)
$CRWV (+1,64%)

And what of course should not be missing is $SIKA (-5,05%) These are still weighted at 2% 😉 As a craftsman, I really enjoy using the products myself. The technological progress compared to other products such as StoCretec or others is already enormous, but it would go beyond the scope of this article.

A good buying opportunity for some Swiss stocks at the end of the month? What do you think?

$SIKA (-5,05%)
$LOGN (-0,7%)
$CFR (-0,63%)
$BARN (-1,58%)
$EMMN (-0,92%)
$UHR (-1,13%)

What a turbulent week on the stock market, I had to buy more 😅 How are things looking for you?

$KLAC (+0,12%)
$ADBE (+0,39%)
$SIKA (-5,05%)
$HOLN (+1,15%)
$MBG (-0,26%)
$CVX (+0,22%)
$MRNA (+0,19%)

After the interest rate cuts, will dividend stocks win the race in 2025?

Dear stock market players and dividend pearls.

Where will you invest after the interest rate cuts? Bonds!

Or like the Swiss, did you know they have a key interest rate of 0.75%, or dividend favorites and aristocrats:

$LISN (-0,28%)

$SIKA (-5,05%)

$STMN (-0,13%)

$TECN (+0,09%)

$GIVN (-0,35%)

$NOVN (-0,36%)

$ROG (+0%)

>4% yields are:

$BALN (-0,56%)

$SCMN (-0,75%)

$NESN (-0,22%)

$$

The market overview for 🇺🇸 & 🇪🇺:

US MARKET🇺🇸

Monday

• PACS Group ($PACS) and UL Solutions ($ULS) have potential IPOs.
• Neel KashkariPresident of the Minneapolis Fed, delivers remarks.

Tuesday

• Release of the NFIB Small Business Optimism Index (March).
• Quarterly reports from WD-40 ($WDFC (+0,28%) ) and Tilray Brands ($TLRY (+1,84%) ).

Wednesday

• Publication of the consumer price index (March).
• Publication of the wholesale stocks (March).
• Publication of the minutes of the March meeting of the Federal Open Market Committee (FOMC).
• Publication of the monthly federal budget of the USA (March).
• Speeches by Austan GoolsbeePresident of the Chicago Fed.
• Quarterly reports from Delta Air Lines ($DAL (+0,74%) ) and Applied Digital ($APLD (+0,51%) ).

Thursday

• Publication of the initial applications for unemployment benefits (April 5).
• Publication of the producer price index (March).
• Speeches by John C. Williams, President of the New York Fed, and Raphael BosticPresident of the Atlanta Fed.
• Quarterly reports from Constellation Brands ($STZ (+0,08%) ), Fastenal ($FAST (+0,5%) ) and CarMax ($KMX (+0,57%) ).

Friday

• Publication of the preliminary Michigan Consumer Sentiment Index (April).
• Speeches by Raphael Bostic, President of the Atlanta Fed, and Mary C. DalyPresident of the San Francisco Fed.
• Quarterly reports from JPMorgan Chase ($JPM (+0,2%) ), Wells Fargo ($WFC (+0,3%) ), BlackRock ($BLK ), Citigroup ($C (+0,43%) ), State Street ($STT (+0,35%) ) and Progressive ($PGR (-0,88%) ).

EUROPEAN MARKET🇪🇺

Monday

• Publication of Industrial Production Index🇪🇺

Tuesday

• ZEW Economic Sentiment🇩🇪 will be published
• Quarterly reports from Ericsson ($ERIC A (-1,33%) )🇸🇪, Beiersdorf AG ($BEI (-1,6%) )🇩🇪, Sika ($SIKA (-5,05%) )🇨🇭, Rio Tinto PLC ($RIO (-0,3%) )🇬🇧

Wednesday

• Release of CPI data🇪🇺
• Quarterly reports from Hays ($HAS (-0,35%) )🇬🇧, Petershill Partners ($PHLL (-1,41%) )🇬🇧, Just Eat Takeaway ($TKWY (+0,52%) )🇬🇧, Entain ($ENT (+0,49%) )🇬🇧, La Francaise ($FDJ (+0%) )🇫🇷, Legal & General ($LGEN (+0%) ), Tryg ($TRYG (-1,24%) )🇩🇰, BHP Group Ltd ($BHP (-0,56%) )🇬🇧, ASML Holding ($ASML (+0,55%) )🇳🇱Volvo B ($VOLV B (+0%) )🇸🇪, Severstal ($CHMF )🇷🇺

thursday

• Publication of Construction Output🇪🇺
• Quarterly reports from Danone ($BN (-0,55%) )🇫🇷, Nokia Oyj ($NOKIA (+0,11%) )🇫🇮, Tele2 AB ($TEL2 B (-0,52%) )🇸🇪

First purchase in 2024 and a new addition to my portfolio. The infrastructure segment should still have plenty of opportunities in store, growth has been excellent in the past and the acquisitions show that the company is continuing on this growth path. In addition, there was a recent setback in the share price, which of course I am happy to take with me. In my opinion, a lot fits together. Let's see what w... [sentence may be ended with the usual comments 😉]