Siegfried Holding AG (SFZN) AI Stock Analysis

• Market Cap: CHF3.62B
• Dividend Yield: 0.51%
• Average Volume (3M): 101.52K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.79
• Revenue Growth: 0.77%
• EPS Growth: 16.70%
• Country: CH
• Employees: 3,886
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.19
• Shares Outstanding: 45,230,000
• 10 Day Avg. Volume: 105,249
• 30 Day Avg. Volume: 101,518
• PEG Ratio: 5.13
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 327.33
• 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: CHF106.67
• Price Target Upside: 49.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.18
• Revenue Forecast (FY): CHF1.42B

• Rating: 62 Neutral
• Price Target: CHF87.00 ▲(21.85% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is primarily supported by solid profitability and a positive guidance outlook (including margin resilience and an accretive acquisition), but is held back by weak/volatile free cash flow and bearish technical positioning. Valuation is also a modest headwind given the higher P/E and low dividend yield.

Positive Factors

Margin resilience

Siegfried's core EBITDA margin expanded to ~23.5% in 2025 and management reiterated a >23% target for 2026. Sustained margin strength reflects pricing, mix and operational efficiency in CDMO services, supporting durable earnings power and competitive advantage across cycles.

Broad commercial momentum and diversified revenue

RFP wins up ~30% alongside multi-year revenue growth (CHF 845m to CHF 1.33bn) indicate a widening project funnel and diversified demand across Drug Substance and Drug Product. A deeper pipeline and balanced segment growth support repeatable revenue and reduce single-market exposure.

Improving leverage and balance-sheet flexibility

Leverage has materially improved (debt/equity ~0.51 in 2025; net debt/EBITDA ~1.5x and ~1.0x after receivables conversion), giving the company capacity to fund accretive M&A and capex. A stronger balance sheet lowers refinancing risk and preserves strategic optionality over the medium term.

Negative Factors

Weak and volatile free cash flow

Free cash flow conversion is thin and volatile (FCF ~CHF 10m in 2025, ≈4.5% of net income), driven by elevated capex and working-capital absorption. Persistent weak FCF constrains internal funding for M&A, debt reduction, or shareholder returns and increases dependence on external financing.

Dependence on a material customer/order

Management flagged an unconfirmed, material Drug Substance order (~CHF 40m p.a.) that directly affects Drug Substance guidance. Reliance on one large, timing-sensitive contract can cause meaningful revenue volatility and impede predictable growth until order certainty is resolved.

High capex and ramp timing risk

Significant near-term investment (CHF 231m in 2025) and capacity builds that are still ramping weigh on near-term cash conversion and margin realization. Until new U.S. sites and technologies scale commercially, earnings and FCF can remain pressured by execution and timing risk.

Siegfried Holding AG Business Overview & Revenue Model

Company Description

Siegfried Holding AG (SFZN) is a leading global provider of pharmaceutical and chemical solutions, specializing in the development and manufacturing of active pharmaceutical ingredients (APIs) and intermediates. The company operates in two main sectors: the pharmaceutical segment, which focuses on custom manufacturing and development services for pharmaceuticals, and the specialty chemicals segment that provides advanced intermediates and services for various industries. Siegfried's core products include high-quality APIs, advanced intermediates, and comprehensive development services that cater to both innovative and generic drug markets.

How the Company Makes Money

Siegfried Holding AG generates revenue through multiple key streams primarily centered around its pharmaceutical manufacturing and development services. The company earns money by providing contract manufacturing services for APIs to pharmaceutical companies, which involves both the production of existing drugs and the development of new formulations. Additionally, Siegfried's revenue is bolstered by its specialty chemicals segment, where it produces chemical intermediates for various applications. Significant partnerships with large pharmaceutical companies enhance its revenue potential, as these collaborations often lead to long-term contracts and a steady demand for its manufacturing capabilities. Furthermore, the company benefits from a strong focus on research and development, allowing it to innovate and expand its product offerings, thereby increasing its market share and profitability.

Siegfried Holding AG Financial Statement Overview

Summary

Strong profitability and steady multi-year revenue growth with improving leverage, but free cash flow remains a key weakness (thin and volatile, with low cash conversion in 2025 despite solid earnings).

Income Statement

Revenue has grown consistently from 2020 to 2025 (CHF ~845m to ~1.33bn), though growth has decelerated to low-single-digits in 2024–2025. Profitability improved meaningfully versus 2020–2021, with net margin rising to ~12.7% in 2025 and operating profitability remaining healthy (2025 operating margin ~15.8%, EBITDA margin ~23.1%). A key watch-out is margin volatility across the cycle (notably a stronger 2022 followed by softer 2023), suggesting earnings can fluctuate with mix, pricing, or cost pressure.

Balance Sheet

The balance sheet looks solid with equity expanding steadily (to ~CHF 1.13bn in 2025), supporting asset growth. Leverage is moderate and improving versus earlier years: debt-to-equity declined from ~0.92 (2021) to ~0.51 (2025), indicating de-risking and greater balance-sheet flexibility. However, absolute debt also increased in 2025 (to ~CHF 575m from ~CHF 490m in 2024), so continued discipline on debt-funded growth remains important.

Cash Flow

Cash generation is the main weak spot. Operating cash flow improved in 2025 (~CHF 222m), but free cash flow has been inconsistent and recently thin: negative in 2021 and 2024, and only ~CHF 10m in 2025 with a sharp year-over-year decline (free cash flow growth -141%). Free cash flow conversion relative to profits is low in 2025 (free cash flow is ~4.5% of net income), suggesting elevated capital spending, working-capital absorption, or other cash headwinds that reduce financial flexibility despite strong reported earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33B	1.29B	1.27B	1.23B	1.10B
Gross Profit	352.39M	329.06M	320.41M	318.69M	239.27M
EBITDA	306.70M	289.49M	241.22M	308.30M	213.54M
Net Income	168.66M	160.06M	112.77M	156.49M	95.60M
Balance Sheet
Total Assets	2.15B	1.93B	1.86B	1.79B	1.67B
Cash, Cash Equivalents and Short-Term Investments	103.80M	39.61M	56.63M	91.62M	72.97M
Total Debt	575.20M	490.10M	525.00M	590.00M	560.00M
Total Liabilities	1.03B	953.81M	1.02B	1.08B	1.06B
Stockholders Equity	1.13B	980.19M	838.24M	710.93M	608.22M
Cash Flow
Free Cash Flow	9.97M	-12.07M	71.51M	19.30M	-1.04M
Operating Cash Flow	221.89M	168.78M	208.61M	134.50M	112.36M
Investing Cash Flow	-231.31M	-190.35M	-146.86M	-103.72M	-250.10M
Financing Cash Flow	74.83M	3.04M	-94.75M	-10.68M	156.24M

Siegfried Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SFZN, the sentiment is Negative. The current price of 71.4 is below the 20-day moving average (MA) of 88.03, below the 50-day MA of 85.70, and below the 200-day MA of 84.94, indicating a bearish trend. The MACD of -1.67 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SFZN.

Siegfried Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANB	75 Outperform	CHF4.34B	21.70	10.07%	1.43%	17.34%	18.15%
GALE	70 Outperform	CHF4.65B	12.27	―	2.36%	5.84%	8.57%
SFZN	62 Neutral	CHF3.62B	19.36	15.79%	0.51%	0.77%	16.70%
PPGN	61 Neutral	CHF820.83M	-6.74	―	―	12.03%	-19.29%
SDZ	59 Neutral	CHF28.45B	32.85	2.64%	1.02%	―	―
LONN	56 Neutral	CHF35.07B	39.77	―	0.75%	5.93%	29.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Siegfried Holding AG Corporate Events

Siegfried lifts profitability and expands U.S. footprint amid cautious 2026 outlook

Siegfried reported 2025 net sales of CHF 1.33 billion, up 4.3% in local currencies, with particularly strong contributions from its Drug Substances and Drug Products clusters and record core profitability metrics. The company combined disciplined cost and portfolio management with stepped‑up capital expenditure to expand manufacturing capacity, while maintaining a solid balance sheet and modest leverage.

Execution of the EVOLVE+ strategy drove a sharp increase in customer requests and project wins, underpinned by targeted technology upgrades in ophthalmic, spray‑drying and fill‑finish capabilities and the ramp‑up of new plants in Minden and Schlieren. A strategic acquisition of small‑molecule drug substance assets in the U.S. and Australia, along with a streamlined operations leadership structure, is set to strengthen Siegfried’s position in the world’s largest pharma market, even as 2026 guidance reflects cautious assumptions for Drug Substances and confirms resilient margins and above‑market mid‑term growth ambitions.

The most recent analyst rating on (CH:SFZN) stock is a Hold with a CHF108.00 price target. To see the full list of analyst forecasts on Siegfried Holding AG stock, see the CH:SFZN Stock Forecast page.

Siegfried Revamps Board with Pharma and Investment Heavyweights Ahead of Chairman Transition

Siegfried Holding AG has nominated seasoned pharma executive Thomas Wozniewski and investment specialist Karl Petersson for election to its Board of Directors at the Annual General Meeting on 16 April 2026, signaling a targeted strengthening of the company’s expertise in global manufacturing, supply management and capital markets. The changes come as long-serving Chairman Andreas Casutt steps down and is set to be succeeded by Beat Walti, pending shareholder approval, collectively marking a significant refresh of the company’s top governance bodies that could influence Siegfried’s strategic direction and reinforce its positioning as a globally focused CDMO backed by strong shareholder representation.

The most recent analyst rating on (CH:SFZN) stock is a Buy with a CHF120.00 price target. To see the full list of analyst forecasts on Siegfried Holding AG stock, see the CH:SFZN Stock Forecast page.

Siegfried expands US small-molecule capacity with Noramco and Extractas acquisition

Siegfried has agreed to acquire the drug substance business of the Noramco Group and Extractas Bioscience from an affiliate of SK Capital Partners, adding three small-molecule manufacturing sites: Noramco in Wilmington, Delaware, Purisys in Athens, Georgia, and Extractas Bioscience in Westbury, Tasmania, together employing around 400 staff. The deal significantly expands Siegfried’s US-based capacity in small-molecule drug substances and controlled substances, complements its existing Pennsville site and early-phase development capabilities, and enhances its extraction expertise, thereby strengthening its integrated CDMO offering and positioning in key growth segments; valued at under 10 times EV/EBITDA and financed with existing and new debt, the transaction is designed to be value accretive and to support the company’s EVOLVE+ strategy of accelerating long-term profitable growth in the world’s largest pharmaceutical market.

The most recent analyst rating on (CH:SFZN) stock is a Hold with a CHF93.00 price target. To see the full list of analyst forecasts on Siegfried Holding AG stock, see the CH:SFZN Stock Forecast page.