Sandoz Group Ltd (SDZ) AI Stock Analysis

• Market Cap: $24.86B
• Dividend Yield: 1.04%
• Average Volume (3M): 677.45K
• Price to Earnings (P/E): 126.0
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CH
• Employees: 22,049
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.17
• Shares Outstanding: 440,000,000
• 10 Day Avg. Volume: 616,025
• 30 Day Avg. Volume: 677,447
• PEG Ratio: -176.07
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 293.45
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 30.68
• 1Y Price Target: $58.03
• Price Target Upside: 2.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: CHF55.00 ▼(-2.65% Downside)

The overall stock score is primarily influenced by strong technical momentum, despite overbought conditions, and significant revenue growth. However, high valuation and profitability challenges weigh down the score. Addressing cash flow issues and improving profitability are crucial for enhancing the company's financial health.

Positive Factors

Revenue Growth

The robust top-line expansion indicates strong market demand and effective sales strategies, positioning Sandoz well for future growth in the generic pharmaceuticals and biosimilars markets.

Cost-Efficient Manufacturing

A cost-efficient manufacturing model supports competitive pricing, enhancing Sandoz's ability to capture market share and sustain profitability in the price-sensitive generic drug market.

Biosimilars Market Expansion

Expanding in the biosimilars market as patents expire provides Sandoz with significant growth opportunities, leveraging its expertise to capture a larger share of the biologics market.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in converting revenue into profit, which could affect long-term financial health and investment capacity if not addressed.

Cash Flow Issues

Decreased free cash flow suggests difficulties in generating cash from operations, potentially impacting Sandoz's ability to invest in growth and manage debt obligations.

High Debt Levels

Although the current debt-to-equity ratio is moderate, past high debt levels could strain financial flexibility, affecting Sandoz's ability to respond to market changes and invest in opportunities.

Sandoz Group Ltd Business Overview & Revenue Model

Company Description

Sandoz Group AG develops, manufactures, and markets generic pharmaceuticals and biosimilars worldwide. It develops, manufactures, and markets finished dosage forms of small molecule pharmaceuticals to third parties. It also provides protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services; and anti-infectives, such as active pharmaceutical ingredients and intermediates primarily antibiotics. The company was founded in 1886 and is headquartered in Rotkreuz, Switzerland.

How the Company Makes Money

Sandoz generates revenue primarily through the sale of generic pharmaceuticals and biosimilars. The company benefits from a cost-efficient manufacturing model, allowing it to offer competitive pricing while maintaining profitability. Key revenue streams include direct sales to pharmacies, hospitals, and healthcare providers, as well as partnerships with other pharmaceutical companies for co-development and distribution agreements. Additionally, Sandoz capitalizes on the growing demand for biosimilars as patent protections for branded biologics expire, further expanding its market presence. Significant partnerships with healthcare organizations and strategic collaborations enhance its product offerings and market reach, contributing to its overall earnings.

Sandoz Group Ltd Financial Statement Overview

Summary

Sandoz Group Ltd demonstrates strong revenue growth, but profitability and cash flow metrics reveal underlying challenges. The balance sheet is stable with moderate leverage, yet past high debt levels could pose risks. Overall, while growth prospects are promising, the company needs to address profitability and cash flow issues to enhance financial health.

Income Statement

Sandoz Group Ltd shows a strong revenue growth rate of 26.94% in the latest year, indicating robust top-line expansion. However, the net profit margin is extremely low at 0.01%, suggesting profitability challenges. The gross profit margin remains stable at around 47%, but the EBIT and EBITDA margins have declined, pointing to increased operational costs or inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.59, indicating a balanced approach to leveraging. However, the return on equity is negligible at 0.01%, reflecting poor returns for shareholders. The equity ratio stands at a healthy level, suggesting a solid capital structure, but the high debt levels in previous years pose a potential risk.

Cash Flow

Operating cash flow is positive, but the free cash flow has significantly decreased by 54.55%, indicating potential liquidity issues. The operating cash flow to net income ratio is low, suggesting that earnings are not effectively translating into cash. The free cash flow to net income ratio is also low, highlighting challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.32B	9.12B	9.98B	8.60B	8.83B	8.55B
Gross Profit	4.35B	4.31B	4.56B	4.05B	4.20B	3.95B
EBITDA	728.55M	667.55M	857.00M	1.53B	1.68B	1.28B
Net Income	227.00M	1.00M	77.00M	784.05M	828.37M	409.01M
Balance Sheet
Total Assets	21.61B	19.91B	19.43B	100.00K	15.98B	15.86B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.19B	933.39M	100.00K	36.45M	34.47M
Total Debt	5.69B	4.85B	4.55B	309.02M	284.28M	298.78M
Total Liabilities	12.79B	11.74B	10.78B	22.86K	8.55B	9.04B
Stockholders Equity	8.82B	8.16B	7.28B	77.14K	7.43B	6.82B
Cash Flow
Free Cash Flow	316.00M	60.00M	-242.64M	760.23M	855.75M	720.86M
Operating Cash Flow	950.00M	656.00M	325.31M	1.17B	1.24B	1.03B
Investing Cash Flow	-662.00M	-740.00M	-551.77M	-410.68M	-631.76M	-514.36M
Financing Cash Flow	322.00M	242.00M	1.24B	-734.45M	-600.67M	-513.42M

Sandoz Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 56.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SDZ, the sentiment is Neutral. The current price of 56.5 is below the 20-day moving average (MA) of 56.82, above the 50-day MA of 53.66, and above the 200-day MA of 45.15, indicating a neutral trend. The MACD of 1.21 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SDZ.

Sandoz Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOVN	80 Outperform	CHF204.56B	17.23	―	3.26%	7.62%	-18.33%
ALC	75 Outperform	CHF31.22B	34.38	4.82%	0.44%	0.39%	-12.46%
ROG	73 Outperform	CHF256.01B	27.04	31.98%	3.01%	4.77%	-11.07%
LONN	71 Outperform	CHF35.46B	48.97	―	0.76%	5.93%	29.83%
SFZN	63 Neutral	CHF3.24B	20.40	15.79%	0.52%	0.77%	16.70%
SDZ	59 Neutral	$24.86B	126.00	2.64%	1.04%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sandoz Group Ltd Corporate Events

Sandoz Launches Denosumab Biosimilars in Europe to Expand Affordable Treatment Options

Sandoz has launched Wyost® and Jubbonti®, two denosumab biosimilars, in Europe to treat cancer-related bone disease and osteoporosis, expanding access to affordable treatment options for millions. This launch marks a significant step in Sandoz’s growth strategy, reinforcing its leadership in the biosimilars market and its commitment to oncology and immunology. The introduction of these biosimilars is expected to have a substantial impact on European healthcare systems by providing sustainable treatment options and addressing the high burden of cancer and osteoporosis in the region.

Sandoz Expands European Market with Afqlir® Launch for Retinal Diseases

Sandoz has launched Afqlir® (aflibercept) in Europe, offering an affordable treatment for retinal diseases such as neovascular age-related macular degeneration. This launch is a significant step in Sandoz’s growth strategy, enhancing its presence in the USD 15 billion anti-VEGF market and reinforcing its commitment to providing accessible biologic medicines. The approval by the European Commission and the product’s efficacy and safety matching the reference medicine Eylea® highlight its potential impact on patient care and healthcare systems.

Sandoz Launches First FDA-Approved MS Biosimilar in US

Sandoz has launched TYRUKO® (natalizumab-sztn), the first and only FDA-approved biosimilar for multiple sclerosis in the US, marking a significant step in making MS treatment more affordable. This launch is expected to drive growth for Sandoz and strengthen its position in the neurology market, as TYRUKO® is also available in 14 European countries. The drug is part of a broader strategy to lead in the biosimilars market, with Sandoz partnering with Labcorp to provide free testing for anti-JCV antibodies, enhancing patient access and safety.

Sandoz Expands Oncology Portfolio with Global License for Pertuzumab Biosimilar

Sandoz has signed a global license agreement with EirGenix Inc. to commercialize a biosimilar of pertuzumab, a key oncology medicine for HER2-positive breast cancer. This strategic move aims to strengthen Sandoz’s position in the oncology sector and expand access to affordable cancer treatments, potentially impacting the USD 4.1 billion reference medicine market and aligning with the company’s goal to capitalize on the projected USD 300 billion biosimilar market over the next decade.

Sandoz Expands Biosimilar Capabilities with Just-Evotec Acquisition

Sandoz has announced a strategic agreement to acquire Just-Evotec Biologics EU SAS, enhancing its in-house biosimilar development and manufacturing capabilities. This acquisition aligns with Sandoz’s strategy to capitalize on the projected USD 300 billion biosimilar market over the next decade, providing the company with continuous manufacturing technology and securing control over its pipeline. The transaction, valued at approximately USD 350 million, includes an indefinite technology license and reconfigures the existing partnership model to align incentives through license fees and development-related expenses.

Sandoz Reports Strong Sales Growth and Upgraded Margin Guidance for 2025

Sandoz reported strong sales growth for the first nine months of 2025, with net sales reaching USD 8,057 million, a 5% increase at constant currencies. The company’s biosimilars segment showed significant growth, representing over 30% of net sales for the first time. Sandoz also upgraded its full-year margin guidance, reflecting the successful execution of its strategic roadmap and the expansion of its biosimilar infrastructure. The company is well-positioned for future growth, with anticipated biosimilar launches and a focus on sustainable European supply amidst geopolitical challenges.

Sandoz Resolves Patent Dispute, Paves Way for US Launch of Aflibercept Biosimilar

Sandoz has reached an agreement with Regeneron Pharmaceuticals to resolve all patent disputes related to its FDA-approved aflibercept biosimilar, Enzeevu™, clearing the way for its US launch by the end of 2026. This move is expected to bolster Sandoz’s position in the US ophthalmology market, expand its biosimilar portfolio, and enhance patient access to affordable medicines, thereby advancing its growth strategy and leadership in the industry.