Siegfried Holding AG (CH:SFZN)
:SFZN
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Siegfried Holding AG
(SFZN)
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Rating:62Neutral
Price Target:
CHF87.00
▲(21.85% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Siegfried Holding AG (SFZN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF3.50B
Dividend Yield0.51%
Average Volume (3M)101.52K
Price to Earnings (P/E)19.4
Beta (1Y)0.84
Revenue Growth0.77%
EPS Growth16.70%
CountryCH
Employees3,886
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.19
Shares Outstanding45,230,000
10 Day Avg. Volume105,249
30 Day Avg. Volume101,518
Financial Highlights & Ratios
PEG Ratio5.13
Price to Book (P/B)2.89
Price to Sales (P/S)2.46
P/FCF Ratio327.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF100.33Price Target Upside40.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.02
Revenue Forecast (FY)CHF1.39B
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 se...
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 pharmaceutica...
Siegfried Holding AG Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: record profitability, margin expansion to ~23.5%, strong cash generation, major strategic investments and an accretive U.S. acquisition that strengthens the network. Management also highlighted robust commercial momentum (RFP wins +30%), quality and safety improvements, and concrete sustainability progress. Key risks discussed were a material pending confirmation on one large on‑market Drug Substance product (creating cautious Drug Substance guidance for 2026), meaningful currency headwinds, and near‑term top‑line timing/seasonality and elevated investment-related ramp timing. On balance, the strengths — sustainable margin improvement, cash and balance sheet flexibility, M&A that increases strategic optionality, and clear commercial momentum — outweigh the near‑term uncertainties.Positive Updates
Revenue Growth and Scale
Group sales of CHF 1.33 billion in FY2025, up 4.3% in local currency; both Drug Substance and Drug Product grew +4.3% LFL, with H2 accounting for ~53% of revenue.
Negative Updates
Uncertainty on a Large On‑Market Drug Substance Product
Management guided 2026 Drug Substance to low single-digit growth due to a pending customer order confirmation for a large in‑market product; analysts and management indicated the product is material (market commentary referenced ~CHF 40 million annual magnitude), so outcomes could materially affect top-line pacing if confirmation is delayed or reduced. Management stated margins are contractually protected, which should limit bottom‑line impact.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Scale
Group sales of CHF 1.33 billion in FY2025, up 4.3% in local currency; both Drug Substance and Drug Product grew +4.3% LFL, with H2 accounting for ~53% of revenue.
Read all positive updates
Company Guidance
Management guided 2026 to low single‑digit group revenue growth with Drug Product accelerating to high single‑digit growth and Drug Substance at low single‑digit, and reiterated a core EBITDA margin above 23% (2025 baseline: CHF 1.33bn sales, +4.3% in local currency; core gross profit CHF 354m, +7.6%; core EBITDA CHF 312.3m, reported margin ~23.5% or 23.05% excluding a CHF 7.5m one‑off). Management warned of a ~2% FY FX headwind (≈2.8% in H1) and persistent H2 seasonality (c.53% of revenue in H2), noted the pending Noramco/Extractas acquisition (sub‑10x EBITDA multiple, closing possibly end‑Q1/Q2 or Q3) could materially raise 2026 top‑ and bottom‑line with no dilution, and highlighted balance‑sheet and cash metrics: YE net debt/EBITDA ~1.5x (1.0x post‑receivables conversion), operating cash flow +35% YoY, CHF 231m capex (tangible+intangible) in 2025, a CHF 300m bond, CHF 40m factored receivables (CHF 50m facility), proposed CHF 0.40 par value repayment, plus operational KPIs—RFP wins +30%, lost‑time injury rate −25%, and ~50% carbon/energy reductions vs 2020.Siegfried Holding AG Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| 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
Negative
71.40
Price Trends
84.30
Negative
79.92
Negative
82.88
Negative
Market Momentum
-2.10
Negative
49.52
Neutral
91.46
Negative
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 76.01, below the 50-day MA of 84.30, and below the 200-day MA of 82.88, indicating a neutral trend. The MACD of -2.10 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 91.46 is Negative, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | CHF28.16B | 32.85 | 2.64% | 1.02% | ― | ― | |
62 Neutral | CHF3.50B | 19.36 | 15.79% | 0.51% | 0.77% | 16.70% | |
62 Neutral | CHF5.01B | 30.18 | 9.76% | 1.43% | 17.34% | 18.15% | |
61 Neutral | CHF4.61B | 26.89 | ― | 2.36% | 5.84% | 8.57% | |
56 Neutral | CHF34.91B | 19.54 | ― | 0.75% | 5.93% | 29.83% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | CHF984.33M | -43.40 | ― | ― | 12.03% | -19.29% |
* Healthcare Sector Average
CH:SFZN
Siegfried Holding AG
77.70
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-8.73%
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Siegfried Holding AG Corporate Events
Siegfried lifts profitability and expands U.S. footprint amid cautious 2026 outlook
Feb 20, 2026
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 ...
Siegfried Revamps Board with Pharma and Investment Heavyweights Ahead of Chairman Transition
Feb 5, 2026
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 th...
Siegfried expands US small-molecule capacity with Noramco and Extractas acquisition
Jan 27, 2026
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...
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.