PolyPeptide Group AG (PPGN) AI Stock Analysis

• Market Cap: CHF929.83M
• Dividend Yield: N/A
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• 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): -0.75
• Shares Outstanding: 33,125,000
• 10 Day Avg. Volume: 33,840
• 30 Day Avg. Volume: 34,067
• PEG Ratio: 0.82
• Price to Book (P/B): 2.78
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 409.26
• 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: CHF33.00
• Price Target Upside: 21.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: CHF24.50 ▼(-10.09% Downside)

The score is held back primarily by ongoing losses (negative net margin and negative EBIT) and a negative P/E, despite supportive factors such as improving cash flow (positive free cash flow) and a stable, low-leverage balance sheet. Technically, the stock’s price sits below key moving averages, adding modest near-term caution.

Positive Factors

Business model & scale

PolyPeptide's global manufacturing footprint and end-to-end peptide services (custom synthesis, process development, formulation) create durable client relationships and operational scale. This diversified service offering supports repeat revenue from large pharma and biotech over the medium term.

Improving cash generation

Transitioning to positive free cash flow signals stronger operational cash conversion and disciplined capex. This provides a durable buffer to fund working capital, modest reinvestment, or debt servicing while profitability is restored, reducing reliance on external financing.

Revenue momentum

Consistent top-line growth shows sustained demand for peptide therapeutics and contract manufacturing services. Continued revenue expansion supports scale economies and offers a path to margin recovery if fixed-cost absorption and operational efficiencies continue to improve.

Negative Factors

Persistent unprofitability

Ongoing net losses and negative EBIT indicate structural profitability issues that limit retained earnings and reinvestment capacity. Until margins sustainably turn positive, the business remains reliant on cash management and faces constraints on strategic investments and shareholder returns.

Negative return on equity

A negative ROE reveals the company is not generating returns on shareholder capital, signaling inefficiency in deploying equity. This undermines long-term capital attraction and suggests profitability improvements are required before shareholders see meaningful value recovery.

Client concentration & contract manufacturing exposure

Heavy reliance on contract manufacturing for pharma clients creates exposure to client concentration, pricing pressure, and long contract cycles. Structural buyer bargaining power and industry consolidation could compress margins and revenue visibility over the coming quarters.

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 AG generates revenue primarily through contract manufacturing of peptides for pharmaceutical companies. The company has multiple key revenue streams, including custom peptide synthesis, which involves creating tailored peptides for specific client needs, and bulk peptide production, where it manufactures larger quantities of peptides for commercial use. Additionally, PPGN engages in partnerships and collaborations with biotech firms, enhancing its revenue through joint development agreements and licensing of proprietary technologies. The growing demand for peptide-based therapeutics in various therapeutic areas, along with the company's commitment to quality and innovation, significantly contributes to its earnings.

PolyPeptide Group AG Financial Statement Overview

Summary

PolyPeptide Group AG shows a mixed financial picture. Revenue growth and cash flow improvements are positive, but ongoing net losses and negative EBIT indicate profitability challenges. The balance sheet is stable with low leverage, but poor return on equity reflects the impact of losses.

Income Statement

PolyPeptide Group AG's revenue has shown growth, increasing from 2023 to 2024 by 5.72%. However, the company faces challenges with profitability, marked by a negative net profit margin of -5.77% in 2024. The EBIT and EBITDA margins have improved compared to the prior year, but EBIT remains negative at -2.17%, indicating ongoing operational challenges. Despite revenue growth, overall profitability remains a concern.

Balance Sheet

The company maintains a healthy equity ratio of 47.22% in 2024, highlighting a strong equity base relative to total assets. The debt-to-equity ratio stands at 0.26, indicating manageable leverage levels. However, return on equity is negative at -5.48%, reflecting the impact of net losses on shareholder returns. The balance sheet shows stability with low leverage risk, but profitability challenges persist.

Cash Flow

PolyPeptide Group AG demonstrated significant improvement in cash flow, with operating cash flow to net income ratio at -4.57, suggesting efficient cash operations despite net losses. Free cash flow turned positive in 2024, showing a growth trajectory from a negative base, indicating effective management of capital expenditures. The company exhibits strong cash flow management, which is a positive sign for future financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	368.85M	338.69M	320.37M	280.98M	282.13M	224.30M
Gross Profit	41.52M	39.27M	4.77M	51.99M	99.70M	73.19M
EBITDA	19.84M	28.42M	-22.15M	35.72M	83.35M	58.55M
Net Income	-34.72M	-19.56M	-51.44M	7.77M	47.26M	31.34M
Balance Sheet
Total Assets	773.07M	756.58M	689.09M	575.78M	595.04M	375.98M
Cash, Cash Equivalents and Short-Term Investments	76.69M	68.28M	95.71M	37.53M	136.30M	17.21M
Total Debt	100.45M	94.12M	113.66M	21.22M	18.00M	51.83M
Total Liabilities	442.08M	399.33M	307.86M	154.10M	173.87M	198.31M
Stockholders Equity	330.99M	357.24M	381.23M	421.68M	421.17M	177.66M
Cash Flow
Free Cash Flow	32.53M	2.43M	-20.25M	-69.64M	-16.61M	8.86M
Operating Cash Flow	138.58M	89.40M	36.48M	5.46M	57.35M	49.48M
Investing Cash Flow	-109.61M	-91.02M	-59.51M	-78.44M	-80.84M	-42.56M
Financing Cash Flow	-5.86M	-25.32M	84.55M	-26.87M	130.93M	-6.73M

PolyPeptide Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.25
• 50DMA: Positive
• 100DMA: Positive
• 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 27.25 is above the 20-day moving average (MA) of 25.14, above the 50-day MA of 24.77, and above the 200-day MA of 22.47, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 69.41 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
LONN	71 Outperform	CHF37.82B	52.24	―	0.75%	5.93%	29.83%
GALD	70 Outperform	CHF38.79B	119.56	―	0.09%	6.22%	―
BANB	64 Neutral	CHF4.69B	34.95	10.07%	1.43%	17.34%	18.15%
SFZN	63 Neutral	CHF3.64B	22.92	15.79%	0.51%	0.77%	16.70%
SDZ	59 Neutral	CHF26.65B	135.06	2.64%	1.02%	―	―
PPGN	53 Neutral	CHF929.83M	-28.39	―	―	12.03%	-19.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

PolyPeptide Group AG Corporate Events

PolyPeptide and Lupin Forge Alliance to Boost Peptide Supply for Metabolic Therapies

PolyPeptide Group AG has announced a strategic alliance with Lupin Manufacturing Solutions to enhance supply chain resilience and operational efficiency in the peptide manufacturing sector, particularly for metabolic therapies. This collaboration aims to meet the growing demand for peptide supply, ensuring reliable access to specialized materials and supporting the long-term growth of both companies, while maintaining high standards of quality and compliance.

The most recent analyst rating on (CH:PPGN) stock is a Hold with a CHF22.00 price target. To see the full list of analyst forecasts on PolyPeptide Group AG stock, see the CH:PPGN Stock Forecast page.