PolyPeptide Group AG (PPGN) AI Stock Analysis

• Market Cap: CHF809.27M
• Dividend Yield: N/A
• Average Volume (3M): 27.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 3.15%
• EPS Growth: 62.88%
• Country: CH
• Employees: 1,362
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.23
• Shares Outstanding: 33,125,000
• 10 Day Avg. Volume: 31,833
• 30 Day Avg. Volume: 27,823
• PEG Ratio: N/A
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 316.64
• 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: CHF27.00
• Price Target Upside: 10.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: CHF27.00 ▲(10.20%Upside)

PolyPeptide Group AG's overall score is driven primarily by positive technical analysis, indicating strong market momentum and price strength. However, profitability challenges and a concerning valuation due to negative earnings impact its financial attractiveness. The absence of earnings call details and corporate events means these factors do not contribute to the score.

PolyPeptide Group AG Business Overview & Revenue Model

Company Description

PolyPeptide Group AG (PPGN) is a leading global contract development and manufacturing organization (CDMO) specializing in the production of peptides. The company operates within the biotechnology sector, providing essential services in the development and manufacture of peptide-based active pharmaceutical ingredients (APIs) for the pharmaceutical and biotechnology industries. With a strong focus on innovation and quality, PolyPeptide Group serves a diverse range of clients, from small biotech firms to large pharmaceutical companies.

How the Company Makes Money

PolyPeptide Group AG generates revenue primarily through contract development and manufacturing services for peptide-based APIs. The company's key revenue streams include custom peptide synthesis, process development, and large-scale commercial manufacturing. By leveraging its advanced technological capabilities and expertise in peptide chemistry, PolyPeptide Group offers tailored solutions to its clients, enabling them to bring their peptide therapeutics from conception to market. The company benefits from long-term relationships with its clients, repeat business, and strategic partnerships in the pharmaceutical industry. Additionally, PolyPeptide Group's revenue is supported by its continuous investment in state-of-the-art facilities and adherence to stringent regulatory standards, ensuring high-quality production that meets the demands of global markets.

PolyPeptide Group AG Financial Statement Overview

Summary

PolyPeptide Group AG exhibits a mixed financial performance with revenue growth and improvements in cash flow management being positive aspects. However, ongoing net losses and negative EBIT continue to pose significant profitability challenges. The balance sheet shows stability with low leverage, but poor return on equity highlights the impact of these 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.69M	320.37M	280.98M	282.13M	224.30M
Gross Profit	39.27M	4.77M	51.99M	99.70M	73.19M
EBITDA	28.42M	-22.15M	35.72M	83.35M	58.55M
Net Income	-19.56M	-51.44M	7.77M	47.26M	31.34M
Balance Sheet
Total Assets	756.58M	689.09M	575.78M	595.04M	375.98M
Cash, Cash Equivalents and Short-Term Investments	68.28M	95.71M	37.53M	136.30M	17.21M
Total Debt	94.12M	113.66M	21.22M	18.00M	37.43M
Total Liabilities	399.33M	307.86M	154.10M	173.87M	198.31M
Stockholders Equity	357.24M	381.23M	421.68M	421.17M	177.66M
Cash Flow
Free Cash Flow	2.43M	-20.25M	-69.64M	-16.61M	8.86M
Operating Cash Flow	89.40M	36.48M	5.46M	57.35M	49.48M
Investing Cash Flow	-91.02M	-59.51M	-78.44M	-80.84M	-42.56M
Financing Cash Flow	-25.32M	84.55M	-26.87M	130.93M	-6.73M

PolyPeptide Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.5 is above the 20-day moving average (MA) of 21.65, above the 50-day MA of 20.78, and above the 200-day MA of 23.19, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 67.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.42 is Negative, 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
SFZN	76 Outperform	$4.31B	25.71	18.36%	8.15%	1.82%	39.11%
COPN	73 Outperform	CHF1.06B	19.29	11.46%	0.06%	-3.44%	-21.64%
BANB	72 Outperform	CHF5.58B	41.60	10.07%	1.14%	17.34%	18.15%
GALD	71 Outperform	CHF31.95B	97.34		0.11%	6.22%	―
MED	71 Outperform	CHF1.17B	320.88		―	6.05%	449.69%
Sector *	66 Neutral	CHF27.47B	16.67	9.37%	2.17%	28.68%	7.54%
PPGN	62 Neutral	CHF809.27M	―		―	3.15%	62.88%

PolyPeptide Group AG Corporate Events

PolyPeptide Expands Credit Facility to Fuel Growth

PolyPeptide Group AG has expanded its revolving credit facility by EUR 40 million to EUR 151 million, with an extension until March 2028, supported by UBS, Danske Bank, and Zürcher Kantonalbank. This financial boost, alongside increased support from main shareholder Draupnir Holding B.V., enhances PolyPeptide’s financial flexibility to pursue growth, aiming to double its 2023 revenues by 2028, particularly in the metabolic diseases and GLP-1 sectors.

The most recent analyst rating on (CH:PPGN) stock is a Hold with a CHF33.50 price target. To see the full list of analyst forecasts on PolyPeptide Group AG stock, see the CH:PPGN Stock Forecast page.