PolyPeptide Group AG (PPGN) AI Stock Analysis

• Market Cap: CHF850.55M
• Dividend Yield: N/A
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 12.03%
• EPS Growth: -19.29%
• Country: CH
• Employees: 1,362
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.15
• Shares Outstanding: 33,125,000
• 10 Day Avg. Volume: 33,840
• 30 Day Avg. Volume: 34,067
• PEG Ratio: -5.12
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 2.36
• P/FCF Ratio: -30.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF35.50
• Price Target Upside: 37.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): CHF475.13M

• Rating: 46 Neutral
• Price Target: CHF24.00 ▼(-6.80% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by weak profitability (continued net losses) and unstable free cash flow, despite steady revenue growth and improved operating cash flow. Technicals also lean bearish with the stock below key moving averages and a negative MACD. Valuation is pressured by a negative P/E that reflects losses, with no dividend yield provided to offset that risk.

Positive Factors

Consistent Revenue Growth

Sustained revenue expansion, including mid-single-digit growth in 2025, indicates ongoing demand for peptide CDMO services and supports scale economics. Persistent top-line growth provides a durable foundation for margin recovery and reinvestment, improving medium-term commercial stability.

Improving Operating Cash Flow

Stronger operating cash flow shows the core CDMO operations generate cash even while accounting profits lag. Reliable OCF supports working-capital needs, funds incremental capacity investments, and underpins the company's ability to support customer projects without depending solely on external financing.

Specialized CDMO Business Model

A focused peptide CDMO with end-to-end development and GMP manufacturing creates high structural barriers to entry, deep technical expertise, and recurring commercial-supply opportunities. This specialization supports durable customer relationships and pricing power for complex peptide programs over time.

Negative Factors

Ongoing Net Losses

Sustained net losses signal the company has not yet converted revenue growth into consistent profitability. Continued losses can erode equity, constrain reinvestment capacity, and require financing, making long-term margin recovery and sustainable return generation an execution risk for management.

Volatile Free Cash Flow

Sharp negative free cash flow in 2025 highlights uneven cash left after investment, likely from capex or working-capital swings. This volatility reduces financial flexibility, may force external funding during downturns, and complicates planning for capacity expansion tied to future contract wins.

Rising Leverage Trend

Increasing debt relative to equity weakens the balance sheet buffer and raises interest and refinancing risk. If profitability and free cash flow recovery lag, higher leverage could constrain strategic flexibility, elevate financing costs, and limit ability to pursue larger commercial-scale projects over the medium term.

PolyPeptide Group AG Business Overview & Revenue Model

Company Description

PolyPeptide Group AG operate as a contract development and manufacturing company worldwide. It focuses on proprietary and generic GMP-grade peptides used by pharmaceutical and biotech companies in approved pharmaceutical products, drugs in clinical development, and in generic products. It engages in manufacturing custom research grade peptides; and developing neoantigen peptide to support personalized cancer therapies. The company is also involved in manufacturing peptides for commercially approved peptide therapeutics. In addition, it manufactures peptide-based generics for human and veterinary markets; and cosmetic peptides. Further, the company offers regulatory affair support services. The company was founded in 1952 and is headquartered in Zug, Switzerland. PolyPeptide Group AG is a subsidiary of Draupnir Holding B.V.

How the Company Makes Money

PolyPeptide Group makes money primarily by providing fee-for-service CDMO work for customers developing and commercializing peptide-based therapeutics. Its core revenue stream is the manufacture and sale of peptide APIs and other peptide-based products produced under customer contracts, with pricing typically tied to project scope, development effort, batch size, and required quality/regulatory standards (e.g., clinical-grade vs commercial-grade GMP production). A second major revenue stream comes from contract development services, where the company is paid for activities such as route and process development, analytical method development, optimization, and scale-up work needed to move a peptide program from early research through clinical supply and into commercial production. The company’s earnings are influenced by the mix of (1) development projects (often smaller, earlier-stage, and more service-intensive) and (2) commercial manufacturing (typically larger-volume, repeat production tied to marketed drugs), with commercial supply generally offering more recurring revenue once a customer’s drug is approved and demand is stable. Information on specific customer names, contract structures (e.g., long-term supply agreements), or disclosed partnerships is null.

PolyPeptide Group AG Financial Statement Overview

Summary

Revenue growth has been steady (including +6.2% in 2025) and operating cash flow improved in 2024–2025, but profitability remains weak with net losses continuing through 2023–2025 and free cash flow turning sharply negative in 2025. Balance sheet capitalization is acceptable with moderate debt-to-equity, though leverage has been trending up as equity has softened.

Income Statement

Revenue has grown consistently over the last several years (including +6.2% in 2025), but profitability has deteriorated materially versus the 2020–2021 peak. Margins compressed sharply in 2022–2024 and net income has remained negative in 2023–2025, despite a return to positive EBIT in 2025. Overall, the top-line trend is constructive, but the earnings profile is currently weak and still in a recovery phase.

Balance Sheet

The balance sheet is supported by a sizable equity base, with debt still moderate relative to equity in the years provided (about 0.26–0.30 debt-to-equity in 2023–2024). However, leverage has increased meaningfully from 2021–2022 levels as total debt rose, while equity declined modestly from 2022 to 2025—consistent with recent losses. Overall financial flexibility looks acceptable, but the direction of leverage and returns on equity remains a key watch item.

Cash Flow

Operating cash flow has generally been positive and improved strongly in 2024–2025, which helps fund operations despite net losses. That said, free cash flow has been volatile and turned sharply negative in 2025 after being slightly positive in 2024, indicating heavier investment and/or working-capital use. In short, cash generation from operations is a strength, but the consistency of cash left after investment is a weakness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	391.87M	338.69M	320.37M	280.98M	282.13M
Gross Profit	64.32M	39.27M	4.77M	51.99M	99.70M
EBITDA	44.42M	28.42M	-22.15M	35.72M	83.35M
Net Income	-21.31M	-19.56M	-51.44M	7.77M	47.26M
Balance Sheet
Total Assets	825.31M	756.58M	689.09M	575.78M	595.04M
Cash, Cash Equivalents and Short-Term Investments	74.53M	68.28M	95.71M	37.53M	136.30M
Total Debt	130.46M	94.12M	113.66M	21.22M	18.00M
Total Liabilities	484.98M	399.33M	307.86M	154.10M	173.87M
Stockholders Equity	340.33M	357.24M	381.23M	421.68M	421.17M
Cash Flow
Free Cash Flow	-30.44M	2.43M	-20.25M	-69.64M	-16.61M
Operating Cash Flow	78.02M	89.40M	36.48M	5.46M	57.35M
Investing Cash Flow	-112.44M	-91.02M	-59.51M	-78.44M	-80.84M
Financing Cash Flow	34.01M	-25.32M	84.55M	-26.87M	130.93M

PolyPeptide Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:PPGN, the sentiment is Positive. The current price of 25.75 is above the 20-day moving average (MA) of 25.20, below the 50-day MA of 26.88, and above the 200-day MA of 24.69, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 42.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:PPGN.

PolyPeptide Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDZ	66 Neutral	CHF27.51B	14.50	2.64%	1.02%	―	―
GALD	63 Neutral	CHF34.05B	17.65	―	0.09%	6.22%	―
BANB	62 Neutral	CHF4.67B	30.18	9.76%	1.43%	17.34%	18.15%
SFZN	62 Neutral	CHF3.40B	19.36	15.79%	0.51%	0.77%	16.70%
LONN	56 Neutral	CHF32.81B	19.54	―	0.75%	5.93%	29.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PPGN	46 Neutral	CHF850.55M	-43.40	―	―	12.03%	-19.29%

PolyPeptide Group AG Corporate Events

PolyPeptide lifts revenue and margins as peptide demand fuels major capacity build-out

PolyPeptide Group reported 2025 revenue of EUR 389.3 million, up 15.6% year-on-year, with EBITDA almost doubling and margins improving as higher production volumes, better operational performance and a favorable product mix took effect. Despite a still negative bottom line driven by adverse financial results, the company turned EBIT positive, strengthened its cash position and continued to benefit from robust demand for peptide-based metabolics, which now account for more than half of sales.

The group accelerated capital expenditure to EUR 110 million, or 28.2% of revenue, to expand global capacity, completing the ramp-up of its large-scale SPPS facility in Belgium and adding new capacity in France and Sweden to support strong customer demand. Management reaffirmed its mid-term ambition to double 2023 revenue by 2028 with EBITDA margins approaching 25%, and issued 2026 guidance for 20–25% revenue growth and a mid- to high-teens EBITDA margin, signaling continued investment-led growth and a bid to consolidate its position in the peptide CDMO market.

The most recent analyst rating on (CH:PPGN) stock is a Hold with a CHF27.00 price target. To see the full list of analyst forecasts on PolyPeptide Group AG stock, see the CH:PPGN Stock Forecast page.

PolyPeptide lifts revenue and margins in 2025 as GLP-1 demand powers growth

PolyPeptide Group AG reported preliminary, unaudited results showing strong top-line expansion in 2025, with revenue rising around 15.6% year-on-year to approximately EUR 389 million, mainly driven by demand in metabolic therapeutics and rapid growth in the GLP-1 segment. Profitability improved markedly, with EBITDA margin increasing from 7.5% in 2024 to between 11–12%, supported by better execution across its multi-site network and successful ramp-up of large-scale peptide manufacturing capacity in Belgium. Capital expenditure for the year came in just above EUR 100 million, while stronger operating cash flow and an expanded revolving credit facility left the group with EUR 75 million in cash and a further EUR 51 million in undrawn committed credit at year-end, bolstering financial flexibility. On the back of this momentum, the company reaffirmed its mid-term ambitions to double 2023 revenue by 2028 and lift EBITDA margin to about 25%, underscoring its bid to solidify its position as a key CDMO player in the high-growth peptide market.

The most recent analyst rating on (CH:PPGN) stock is a Sell with a CHF27.00 price target. To see the full list of analyst forecasts on PolyPeptide Group AG stock, see the CH:PPGN Stock Forecast page.