Siegfried Holding AG (SFZN) AI Stock Analysis

• Market Cap: CHF4.27B
• Dividend Yield: 4.43%
• Average Volume (3M): 57.98K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.85
• Revenue Growth: 1.82%
• EPS Growth: 39.11%
• Country: CH
• Employees: 3,886
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.01
• Shares Outstanding: 45,230,000
• 10 Day Avg. Volume: 56,849
• 30 Day Avg. Volume: 57,985
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: CHF108.67
• Price Target Upside: 14.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: CHF107.00 ▲(12.87%Upside)

The strong financial performance, particularly the robust balance sheet and profitability, significantly boosts the stock's attractiveness. While technical indicators suggest neutrality with a cautious outlook, the high dividend yield further enhances the stock's valuation appeal. The absence of recent earnings call data and corporate events means these factors do not influence the overall score.

Positive Factors

Financial Performance

EBITDA margins are anticipated to increase, reflecting a positive outlook on operational efficiency.

Market Position

SFZN is positioned to outperform peers due to its strong position in the generics market, especially against competitors facing higher tariffs.

Stock Liquidity

A proposed 10:1 stock split could improve liquidity from retail and employee participation.

Negative Factors

Future Guidance

The FY25 guidance is typically conservative with limited margin expansion and scope for negative revisions, particularly for EBITDA and a weaker first half of the year.

Market Expectations

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

Profit Margins

Generics are hit harder by tariffs compared to exclusive contracts, potentially impacting profit margins.

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 primarily through its contract development and manufacturing organization (CDMO) services. The company collaborates with pharmaceutical and biotech companies to provide a broad range of services that include the development and manufacturing of APIs and finished dosage forms. Revenue streams are generated from contractually agreed-upon fees for development services, manufacturing services, and the supply of drug substances and products. Key factors contributing to its earnings include strategic partnerships with major pharmaceutical companies, a robust pipeline of projects, and the ability to offer integrated solutions from development to commercialization. The company's global presence and expertise in both chemical and pharmaceutical production further enhance its revenue-generating capabilities.

Siegfried Holding AG Financial Statement Overview

Summary

Siegfried Holding AG demonstrates strong financial health with solid revenue growth and profitability. A robust balance sheet with no debt enhances financial stability. However, negative free cash flow indicates high capital expenditures, which could strain liquidity if not managed carefully.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Siegfried Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 94.8 is above the 20-day moving average (MA) of 90.56, above the 50-day MA of 93.05, and below the 200-day MA of 98.51, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.54 is Negative, 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	76 Outperform	CHF4.27B	25.52	18.36%	4.43%	1.82%	39.11%
MED	71 Outperform	CHF1.20B	327.98		―	6.05%	449.69%
LONN	69 Neutral	CHF38.62B	53.33		0.71%	5.93%	29.83%
PPGN	62 Neutral	CHF809.27M	―		―	3.15%	62.88%
Sector *	46 Neutral	C$205.70M	-3.34	-23.14%	2.45%	20.79%	-0.36%
0QND	―	CHF5.45B	41.15	10.07%	1.15%	―	―
MEDX	61 Neutral	CHF511.65M	―		4.07%	-2.42%	-222.68%

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.