PolyPeptide Group AG (PPGN) AI Stock Analysis

• Market Cap: CHF901.75M
• Dividend Yield: N/A
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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): -0.73
• 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: CHF35.50
• Price Target Upside: 30.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: CHF33.00 ▲(20.88% Upside)

The score is driven primarily by mixed fundamentals: improving revenue and cash flow with a stable, low-leverage balance sheet, but continued net losses and negative operating profitability. Technicals are strong with an upward trend and positive momentum, while valuation is pressured by a negative P/E and no dividend support.

Positive Factors

Comprehensive peptide manufacturing platform

PolyPeptide's integrated global manufacturing and broad service offering (custom synthesis, process development, formulation) creates durable revenue stickiness and high switching costs with pharma clients. Scale and technical breadth support long-term contract wins and steady backlog growth.

Low leverage with strong equity base

A conservative capital structure with low debt provides financial flexibility to fund capacity expansion, regulatory compliance, or R&D without immediate refinancing risk. This resilience supports multi-year investments needed in peptide manufacturing and regulatory approvals.

Free cash flow turned positive

Transition to positive free cash flow signals improving operational efficiency and capital allocation. Sustained cash generation reduces dependence on external financing, enabling reinvestment in capacity and innovation, and strengthening the balance sheet over the medium term.

Negative Factors

Persistent operating losses

Continued negative operating margins show core operations are not yet profitable, which can limit retained earnings and constrain reinvestment. If margins do not convert to sustained profitability, the company may need external capital or cost restructuring, affecting long-term growth plans.

Negative return on equity

A negative ROE indicates shareholder capital is not generating returns and reflects ongoing losses. Over time, persistent negative ROE can erode investor confidence, increase cost of capital, and limit ability to raise funds for strategic investments or capacity expansion.

Concentration in contract manufacturing revenue

Heavy reliance on contract manufacturing ties performance to pharmaceutical clients' R&D and procurement cycles and subjects margins to pricing pressure and client concentration. Structural exposure to biotech funding and lead-time variability can cause durable revenue and margin volatility.

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

Revenue grew 5.72% from 2023 to 2024 and cash flow improved with free cash flow turning positive, but profitability remains weak with a -5.77% net margin and negative EBIT (-2.17%). The balance sheet is stable with low leverage (debt-to-equity 0.26), yet negative ROE (-5.48%) reflects ongoing 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: Neutral
• Last Price: 27.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:PPGN, the sentiment is Neutral. The current price of 27.3 is below the 20-day moving average (MA) of 28.49, above the 50-day MA of 26.22, and above the 200-day MA of 23.49, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 10.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:PPGN.

PolyPeptide Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANB	75 Outperform	CHF5.25B	39.11	10.07%	1.43%	17.34%	18.15%
SFZN	74 Outperform	CHF4.28B	26.92	15.79%	0.51%	0.77%	16.70%
GALD	70 Outperform	CHF33.79B	104.15	―	0.09%	6.22%	―
PPGN	61 Neutral	CHF901.75M	-27.54	―	―	12.03%	-19.29%
SDZ	59 Neutral	CHF26.92B	136.44	2.64%	1.02%	―	―
LONN	56 Neutral	CHF35.87B	38.75	―	0.75%	5.93%	29.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

PolyPeptide Group AG Corporate Events

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.

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.