PolyPeptide Group AG (PPGN) AI Stock Analysis

• Market Cap: CHF810.92M
• Dividend Yield: N/A
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• 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): -0.80
• 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: CHF36.85
• Price Target Upside: 47.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: CHF22.00 ▼(-11.82% Downside)

PolyPeptide Group AG's overall stock score is primarily impacted by its financial performance and technical analysis. While the company shows revenue growth and strong cash flow management, ongoing profitability challenges and a bearish technical outlook weigh heavily on the score. The negative P/E ratio and lack of dividend yield further contribute to a lower valuation score.

Positive Factors

Revenue Growth

PolyPeptide Group AG's revenue has shown consistent growth, indicating strong demand for its peptide-based therapeutics and services, which supports long-term business expansion.

Cash Flow Management

The shift to positive free cash flow demonstrates effective capital expenditure management, enhancing financial stability and supporting future investments in growth opportunities.

Balance Sheet Health

A low debt-to-equity ratio reflects a strong balance sheet, providing PolyPeptide Group AG with financial flexibility to navigate industry challenges and invest in strategic initiatives.

Negative Factors

Profitability Challenges

Despite revenue growth, persistent net losses and negative EBIT highlight operational inefficiencies, which could hinder long-term financial performance if not addressed.

Negative Return on Equity

A negative return on equity suggests that the company is not generating sufficient returns on shareholders' investments, potentially impacting investor confidence and capital raising ability.

Negative Net Profit Margin

A negative net profit margin indicates that PolyPeptide Group AG is not converting sales into profits, which could limit its ability to reinvest in growth and improve shareholder value.

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: 24.95
• 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 24.95 is above the 20-day moving average (MA) of 24.46, above the 50-day MA of 24.57, and above the 200-day MA of 22.04, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.79 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	CHF36.90B	50.96	―	0.78%	5.93%	29.83%
GALD	70 Outperform	CHF38.44B	118.12	―	0.09%	6.22%	―
BANB	64 Neutral	CHF4.03B	30.01	10.07%	1.60%	17.34%	18.15%
SFZN	63 Neutral	CHF3.27B	20.60	15.79%	0.52%	0.77%	16.70%
SDZ	59 Neutral	$25.39B	128.68	2.64%	1.04%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PPGN	49 Neutral	CHF810.92M	-24.76	―	―	12.03%	-19.29%

PolyPeptide Group AG Corporate Events

PolyPeptide Group Advances Malmö Facility Expansion

PolyPeptide Group AG has reached a significant milestone in its Malmö, Sweden facility expansion, with the installation of pre-built modules aimed at doubling its solid-phase peptide synthesis capacity. This expansion, part of a EUR ~100 million investment largely funded by a pharmaceutical partner, is designed to meet growing global demand and is expected to accelerate capacity expansion, supporting the company’s goal to double its 2023 revenue by 2028.