Sandoz Group Ltd (SDZ) AI Stock Analysis

• Market Cap: $21.07B
• Dividend Yield: 1.28%
• Average Volume (3M): 782.66K
• Price to Earnings (P/E): 104.7
• Beta (1Y): 0.90
• 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: 671,697
• 30 Day Avg. Volume: 782,660
• 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: 1.06
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 30.68
• 1Y Price Target: $49.28
• Price Target Upside: 2.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: CHF49.00 ▲(2.32% Upside)

Sandoz Group Ltd's overall stock score is primarily influenced by its strong revenue growth but is weighed down by profitability and cash flow challenges. The technical analysis suggests mixed momentum, while the high P/E ratio indicates overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

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	5.59B	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: Positive
• Last Price: 47.89
• 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 Positive. The current price of 47.89 is below the 20-day moving average (MA) of 49.02, above the 50-day MA of 47.67, and above the 200-day MA of 41.06, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOVN	76 Outperform	183.81B	16.21	32.52%	3.62%	9.36%	-14.82%
ROG	73 Outperform	208.79B	21.81	26.06%	3.73%	4.77%	-11.07%
LONN	69 Neutral	37.29B	51.79	6.82%	0.73%	5.93%	29.83%
ALC	66 Neutral	30.59B	32.38	4.72%	0.46%	1.60%	-4.40%
SFZN	66 Neutral	3.90B	24.37	16.33%	0.44%	0.77%	16.70%
SDZ	54 Neutral	$21.07B	104.68	2.64%	1.28%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sandoz Group Ltd Corporate Events

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.

The most recent analyst rating on (CH:SDZ) stock is a Buy with a CHF55.00 price target. To see the full list of analyst forecasts on Sandoz Group Ltd stock, see the CH:SDZ Stock Forecast page.

Sandoz Expands Anticoagulant Access with Rivaroxaban Launch in Germany

Sandoz has launched generic rivaroxaban in Germany, providing a comprehensive range of film-coated tablets in 10 mg, 15 mg, and 20 mg strengths. This launch follows successful litigation challenging a dosage patent, allowing Sandoz to offer a high-quality, affordable alternative to Xarelto® and expand access to anticoagulant therapies. The launch is expected to enhance Sandoz’s market position in Germany and support affordability and access for patients and payers.

The most recent analyst rating on (CH:SDZ) stock is a Buy with a CHF55.00 price target. To see the full list of analyst forecasts on Sandoz Group Ltd stock, see the CH:SDZ Stock Forecast page.

Sandoz Advances Sustainability with New Solar Projects in Spain

Sandoz has signed a 10-year virtual Power Purchase Agreement with Elawan Energy to develop 150 MW solar projects in Spain, covering nearly 90% of its European electricity demand. This initiative is a significant step in Sandoz’s decarbonization strategy, aligning with its commitment to sustainability and reducing its environmental footprint.

The most recent analyst rating on (CH:SDZ) stock is a Buy with a CHF50.00 price target. To see the full list of analyst forecasts on Sandoz Group Ltd stock, see the CH:SDZ Stock Forecast page.