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Sandoz Group Ltd
(SDZ)
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Rating:66Neutral
Price Target:
CHF75.00
▲(11.67% Upside)
Action:Reiterated
Date:03/10/26
The score is led by improving financial performance in 2025 (growth, margins, and stronger operating/free cash flow), tempered by multi-year volatility and rising debt. Technicals are mixed with near-term weakness despite a longer-term uptrend, and valuation looks reasonable on earnings but offers a modest dividend yield.
Positive Factors
Revenue & profitability rebound
A ~25% revenue increase and net margin recovery to ~8% in 2025 indicate the company regained pricing and volume traction after prior weakness. This kind of operational rebound signals sustainable revenue drivers and improved operating leverage from core generics and biosimilars, supporting multi‑period cash generation and investor visibility.
Negative Factors
Earnings and FCF volatility
Large year‑to‑year swings in free cash flow and earnings highlight sensitivity to working capital, tender timing and investment cycles common in generics. This volatility makes forecasting cash available for reinvestment or debt reduction harder, increasing operating and financing risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profitability rebound
A ~25% revenue increase and net margin recovery to ~8% in 2025 indicate the company regained pricing and volume traction after prior weakness. This kind of operational rebound signals sustainable revenue drivers and improved operating leverage from core generics and biosimilars, supporting multi‑period cash generation and investor visibility.
Read all positive factors
Sandoz Group Ltd (SDZ) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF28.05B
Dividend Yield1.02%
Average Volume (3M)677.45K
Price to Earnings (P/E)38.2
Beta (1Y)0.82
Revenue Growth0.80%
EPS Growth28043.55%
CountryCH
Employees22,356
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.13
Shares Outstanding440,000,000
10 Day Avg. Volume616,025
30 Day Avg. Volume677,447
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.35
Price to Sales (P/S)2.82
P/FCF Ratio38.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF74.60Price Target Upside11.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)4.08
Revenue Forecast (FY)CHF12.12B
Sandoz Group Ltd Business Overview & Revenue Model
Company Description
Operating globally, Sandoz Group AG specializes in the development, production, and distribution of generic medications and biosimilar products. The company's portfolio includes the creation and sale of finished dosage forms for small molecule pha...
How the Company Makes Money
Sandoz primarily makes money by selling (1) small-molecule generic pharmaceuticals and (2) biosimilars. Its revenue is generated from supplying these products to wholesalers, retail pharmacies, and hospital/health-system purchasing channels (inclu...
Sandoz Group Ltd Earnings Call Summary
Earnings Call Date:Mar 13, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong sales growth, particularly in the biosimilars segment and North American market recovery. However, the financial performance was impacted by negative free cash flow, a decline in core EBITDA margin, significant restructuring, and legal costs.Positive Updates
Strong Sales Growth
Fourth quarter 2023 was the strongest consecutive quarter of top line growth, with sales up 10% compared to the previous year. For the full year, sales grew 7% to $9.6 billion, with volume contributing 10 percentage points of growth.
Negative Updates
Negative Free Cash Flow
The free cash flow was negative $234 million for 2023, attributed to significant investments needed for the transition to a standalone company and other strategic initiatives.
Read all updates
Q4-2023 Updates
Positive
Negative
Strong Sales Growth
Fourth quarter 2023 was the strongest consecutive quarter of top line growth, with sales up 10% compared to the previous year. For the full year, sales grew 7% to $9.6 billion, with volume contributing 10 percentage points of growth.
Read all positive updates
Company Guidance
During the Sandoz Q4 2023 earnings call, the company reported a strong financial performance, exceeding sales growth guidance with a 7% increase to $9.6 billion for the year and achieving a core EBITDA of $1.7 billion, reflecting an 18.1% margin. The biosimilar segment saw significant growth, contributing 23% to total sales, up from 20% in 2022, with products like Omnitrope and the launch of Hyrimoz in the U.S. playing key roles. Despite a negative free cash flow of $234 million due to initial investments post-spin-off, Sandoz anticipates a robust cash flow increase by 2028. Looking forward to 2024, the company expects mid-single-digit net sales growth and core EBITDA margins to reach around 20%, driven by continued biosimilar momentum and operational efficiencies.Sandoz Group Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.16B | 9.12B | 9.98B | 8.60B | 8.83B |
| Gross Profit | 5.28B | 4.31B | 4.56B | 4.05B | 4.20B |
| EBITDA | 2.29B | 667.55M | 857.00M | 1.53B | 1.68B |
| Net Income | 957.48M | 1.00M | 77.00M | 784.05M | 828.37M |
Balance Sheet | |||||
| Total Assets | 22.03B | 19.91B | 19.43B | 100.00K | 15.98B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 1.19B | 933.39M | 100.00K | 36.45M |
| Total Debt | 5.68B | 4.85B | 4.55B | 309.02M | 284.28M |
| Total Liabilities | 12.65B | 11.74B | 10.78B | 22.86K | 8.55B |
| Stockholders Equity | 9.38B | 8.16B | 7.28B | 77.14K | 7.43B |
Cash Flow | |||||
| Free Cash Flow | 810.00M | 60.00M | -242.64M | 760.23M | 855.75M |
| Operating Cash Flow | 1.59B | 656.00M | 325.31M | 1.17B | 1.24B |
| Investing Cash Flow | -980.00M | -740.00M | -551.77M | -410.68M | -631.76M |
| Financing Cash Flow | -197.00M | 242.00M | 1.24B | -734.45M | -600.67M |
Sandoz Group Ltd Technical Analysis
Positive
67.16
Price Trends
67.28
Negative
65.45
Positive
60.62
Positive
Market Momentum
-0.68
Positive
41.49
Neutral
14.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SDZ, the sentiment is Positive. The current price of 67.16 is below the 20-day moving average (MA) of 69.60, below the 50-day MA of 67.28, and above the 200-day MA of 60.62, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SDZ.
Sandoz Group Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | CHF225.02B | 22.17 | ― | 3.18% | -4.75% | -1.04% | |
66 Neutral | CHF28.05B | 38.21 | 2.64% | 1.02% | 0.80% | 28043.55% | |
62 Neutral | CHF28.45B | 42.33 | 3.69% | 0.44% | -3.08% | -33.39% | |
62 Neutral | CHF3.29B | 19.16 | 15.79% | 0.51% | 2.57% | 4.31% | |
56 Neutral | CHF39.20B | -144.85 | ― | 0.75% | -0.65% | -143.04% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:SDZ
Sandoz Group Ltd
65.74
20.34
44.81%
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Sandoz Group Ltd Corporate Events
Sandoz to Join Swiss Market Index in Milestone for Post-Listing Growth
Jul 9, 2026
Sandoz has been selected for inclusion in the Swiss Market Index, Switzerland’s flagship blue-chip equity benchmark comprising the 20 largest and most liquid stocks on the SIX Swiss Exchange. The move comes less than three years after Sandoz...
Sandoz maps biosimilars ‘golden decade’ with capital markets day and Slovenia hub visit
Jun 22, 2026
Sandoz Group AG, a leading global provider of affordable generics and biosimilars, is deepening its push into what it terms a golden decade for biosimilars as it marks 20 years in the segment and 80 years in antibiotics manufacturing. Headquartere...
Sandoz opens flagship biosimilar R&D hub in Slovenia to anchor $1.1bn expansion
Jun 17, 2026
Sandoz has inaugurated a USD 99 million, fully digital biosimilar development centre in Ljubljana, Slovenia, marking 20 years since the launch of the world’s first biosimilar and significantly expanding its in-house RD capabilities. The 10,0...
Sandoz marks 80 years of European antibiotics and urges EU action to protect supply
May 28, 2026
Sandoz is marking 80 years of large-scale antibiotic manufacturing in Europe with a high-profile event at its Kundl, Austria site, highlighting its role as the last fully vertically integrated antibiotic producer on the continent. The company fram...
Sandoz wins EU approval for two insulin biosimilars, bolstering diabetes push
May 15, 2026
Sandoz has secured European Commission marketing authorisation for its biosimilar insulins Bysumlog (insulin lispro) and Dazparda (insulin aspart), both delivered in prefilled pens and developed with Gan Lee Pharmaceuticals. The products are appr...
Sandoz lifts Q1 sales on biosimilars surge and confirms 2026 outlook
Apr 29, 2026
Sandoz reported first-quarter 2026 net sales of USD 2.76 billion, up 3% at constant currencies, with biosimilars growing 18% while generics declined 3% amid pressure in its anti-infective business-to-business segment. Growth was strongest in North...
Sandoz seals Rwanda supply deal to bolster access to critical medicines in Africa
Apr 15, 2026
Sandoz has signed a direct manufacturing and supply agreement with the Rwandan government to secure stable access to critical medicines, including antibiotics and cancer therapies, for Rwanda and selected African partner countries. The deal initia...
Sandoz marks 20 years of Omnitrope as biosimilar savings set stage for “golden decade”
Apr 13, 2026
Sandoz is marking 20 years since the European approval of Omnitrope, the world’s first biosimilar, underscoring its pioneering role in establishing the biosimilar industry and strengthening its leadership in somatropin. The company highlight...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.