Siegfried Holding AG (SFZN) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: 0.4%
• Average Volume (3M): 63.85K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.85
• Revenue Growth: 1.82%
• EPS Growth: 39.11%
• Country: CH
• Employees: 3,886
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.01
• Shares Outstanding: 45,230,000
• 10 Day Avg. Volume: 62,329
• 30 Day Avg. Volume: 63,848
• PEG Ratio: 0.26
• Price to Book (P/B): 3.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 134.20
• 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: $110.17
• Price Target Upside: 14.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ―

Siegfried Holding AG exhibits solid financial performance with strong revenue growth and a robust balance sheet. However, the negative free cash flow due to high capital expenditures poses a liquidity challenge. Technical analysis indicates mixed signals with potential overbought conditions. Valuation metrics suggest the stock is fairly priced, though the low dividend yield offers limited income return.

Positive Factors

Financial Health

SFZN's balance sheet is seen as healthy, which supports potential US expansion and merger or acquisition activities.

Tariff Exposure

SFZN's low exposure to tariffs and potential volume share gains in generics at the expense of Chinese and Indian competitors.

Negative Factors

Limited Margin Expansion

The margin guide leads to limited margin expansion potential for FY25, with scope for negative revisions in the near term.

Near-term Pressure

The company is expected to face near-term pressure with limited catalysts for stock improvement in the first half of the year.

Siegfried Holding AG Business Overview & Revenue Model

Company Description

Siegfried Holding AG engages in the life sciences business worldwide. The company develops and produces active pharmaceutical ingredients (APIs) and intermediates, as well as finished dosage forms, including solid oral dosage forms, and sterile and aseptic filling injectables, ophthalmics, and inhalative products. It offers contract development and manufacturing services, including pharmaceutical and analytical development, process and analytical transfer, commercial manufacturing and packaging, and scale up and clinical trial material production. In addition, the company provides APIs and controlled substances focusing on anesthetics, pain treatment applications, and central nervous and respiratory diseases. Further, it licenses oral solid and sterile products; assembles registration dossiers; and offers a common technical document for various products. The company was founded in 1873 and is headquartered in Zofingen, Switzerland.

How the Company Makes Money

Siegfried Holding AG generates revenue through its contract development and manufacturing organization (CDMO) services, which include the custom synthesis of active pharmaceutical ingredients (APIs) and the production of finished dosage forms (FDFs) for pharmaceutical companies. The company has established long-term partnerships with various global pharmaceutical and biotech firms, providing them with tailored solutions that range from early-stage development to commercial production. Siegfried's earnings are significantly driven by its ability to offer specialized expertise in chemical and pharmaceutical manufacturing processes, as well as its commitment to quality and compliance with regulatory standards. The company's diverse portfolio and global presence further enhance its revenue streams by allowing it to cater to a wide array of client needs in the healthcare industry.

Siegfried Holding AG Financial Statement Overview

Summary

Siegfried Holding AG demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is robust with zero debt, enhancing financial stability. However, the negative free cash flow due to high capital expenditures indicates a need for improved cash retention.

Income Statement

Siegfried Holding AG has demonstrated consistent revenue growth, with a 1.81% increase from 2023 to 2024. The gross profit margin for 2024 was 25.42%, and the net profit margin was 12.37%, showing strong profitability. The EBIT margin improved to 15.39%, and the EBITDA margin stood at 22.36%, indicating efficient core operations and cost management.

Balance Sheet

The company has a robust balance sheet with zero debt in 2024, significantly improving its debt-to-equity position. Return on Equity (ROE) was strong at 16.33% for 2024, reflecting effective equity use. The equity ratio was 50.69%, suggesting a healthy capital structure with a significant portion of assets financed by equity.

Cash Flow

The operating cash flow to net income ratio was 1.05, indicating good cash generation relative to profit. However, the free cash flow was negative at -12.07 million, reflecting significant capital expenditures. The free cash flow to net income ratio was -0.08, showing a need for improved cash retention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.29B	1.27B	1.23B	1.10B	845.06M
	Gross Profit
329.06M	320.41M	318.69M	239.27M	176.00M
	EBIT
199.26M	172.07M	227.62M	130.03M	77.40M
	EBITDA
289.49M	241.22M	308.30M	213.54M	132.18M
	Net Income Common Stockholders
160.06M	112.77M	156.49M	95.60M	60.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.61M	56.63M	91.62M	72.97M	54.44M
	Total Assets
1.93B	1.86B	1.79B	1.67B	1.24B
	Total Debt
0.00	525.00M	590.00M	560.00M	377.50M
	Net Debt
-38.76M	468.64M	498.52M	487.38M	323.08M
	Total Liabilities
953.81M	1.02B	1.08B	1.06B	746.62M
	Stockholders Equity
980.19M	838.24M	710.93M	608.22M	495.65M
Cash Flow		Free Cash Flow
-12.07M	71.51M	19.30M	-1.04M	36.15M
	Operating Cash Flow
168.78M	208.61M	134.50M	112.36M	105.28M
	Investing Cash Flow
-190.35M	-146.86M	-103.72M	-250.10M	-69.02M
	Financing Cash Flow
3.04M	-94.75M	-10.68M	156.24M	-6.12M

Siegfried Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.50
• 50DMA: Positive
• 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 Positive. The current price of 96.5 is above the 20-day moving average (MA) of 95.97, above the 50-day MA of 92.98, and below the 200-day MA of 102.10, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SFZN.

Siegfried Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFZN	74 Outperform	$4.42B	26.41	18.36%	0.40%	1.82%	39.11%
LONN	64 Neutral	CHF40.55B	64.53		0.69%	-2.13%	2.50%
PPGN	61 Neutral	CHF729.99M	―		―	3.15%	62.88%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
0QND		CHF4.16B	34.61	8.87%	1.53%	―	―
MEDX		CHF437.38M	―		4.72%	―	―
MED		CHF1.06B	291.37		―	―	―

Siegfried Holding AG Corporate Events

Siegfried Holding AG Shareholders Approve Key Proposals at AGM 2025

At its 122nd Annual General Meeting, Siegfried Holding AG’s shareholders approved all proposals made by the Board of Directors, including a capital reduction through a nominal value repayment of CHF 3.80 per share and a 1:10 share split to enhance market liquidity. The meeting also addressed Siegfried’s exposure to US tariffs, noting that a small portion of its revenue is subject to potential tariffs, with most imports either exempt or picked up directly by customers. These decisions are expected to impact shareholder returns positively and improve share liquidity, while the company’s limited exposure to US tariffs suggests minimal impact on its operations.