SGS’s FY19 results came in broadly in line with consensus at the top line, while it beats expectations on the net profit and FCF. The group’s cost measures seem to bear fruit, and improved profitability, combined with a higher return to shareholders with a 2.5% increase in dividend to CHF80. SGS is a must-have stock as it is a leading TIC company, with a good diversification in its business lines and a healthy balance sheet.
