Siegfried Holding AG (SFZN) AI Stock Analysis

• Market Cap: CHF3.94B
• Dividend Yield: 4.78%
• Average Volume (3M): 49.40K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.84
• Revenue Growth: 1.82%
• EPS Growth: 39.11%
• Country: CH
• Employees: 3,886
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.01
• Shares Outstanding: 45,230,000
• 10 Day Avg. Volume: 47,591
• 30 Day Avg. Volume: 49,397
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF107.00
• Price Target Upside: 22.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: CHF102.00 ▲(16.57% Upside)

The overall stock score of Siegfried Holding AG is driven primarily by its strong financial performance, particularly the robust balance sheet with zero debt and consistent profitability. The technical analysis suggests neutral to slightly positive momentum, while the valuation indicates balanced growth and income prospects. The absence of notable earnings call and corporate events data did not impact the score.

Positive Factors

Financial Health

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

Market Position

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

Operational Efficiency

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

Negative Factors

Growth Expectations

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.

Profit Margins

Analyst notes that 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 (SFZN) is a Swiss-based pharmaceutical company that specializes in the development and production of active pharmaceutical ingredients (APIs) and finished dosage forms. Operating primarily in the pharmaceutical and biotechnology sectors, Siegfried provides a wide range of services including contract manufacturing, formulation development, and regulatory support. The company serves clients across the globe, focusing on both generic and innovative medicines, while maintaining high standards of quality and compliance in its manufacturing processes.

How the Company Makes Money

Siegfried Holding AG generates revenue through multiple key streams, primarily by offering contract manufacturing services to pharmaceutical companies, which includes the production of APIs and finished dosage forms. The company also earns revenue from the development and sale of its own proprietary products. Significant partnerships with major pharmaceutical companies enhance its revenue through long-term contracts and collaborations for drug development and manufacturing. Additionally, Siegfried capitalizes on its expertise in regulatory affairs, which allows it to charge for consulting services related to drug approval processes. The company's commitment to quality and compliance, alongside its global footprint, contributes to its ability to attract and retain high-value clients, thus bolstering its earnings.

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	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
EBITDA	289.49M	241.22M	308.30M	213.54M	132.18M
Net Income	160.06M	112.77M	156.49M	95.60M	60.87M
Balance Sheet
Total Assets	1.93B	1.86B	1.79B	1.67B	1.24B
Cash, Cash Equivalents and Short-Term Investments	39.61M	56.63M	91.62M	72.97M	54.44M
Total Debt	490.10M	525.00M	590.00M	560.00M	377.50M
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: Negative
• Last Price: 87.50
• 50DMA: Negative
• 100DMA: Negative
• 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 87.5 is below the 20-day moving average (MA) of 89.84, below the 50-day MA of 91.04, and below the 200-day MA of 96.70, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 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	80 Outperform	CHF5.17B	38.53	10.07%	1.23%	17.34%	18.15%
SFZN	74 Outperform	CHF3.94B	23.56	18.36%	4.78%	1.82%	39.11%
LONN	66 Neutral	CHF37.88B	52.32		0.72%	5.93%	29.83%
PPGN	60 Neutral	CHF898.45M	―		―	12.03%	-19.31%
MED	55 Neutral	CHF1.01B	276.43		―	6.05%	449.69%
Sector *	51 Neutral	$7.69B	-0.19	-46.01%	2.25%	22.94%	-0.68%
MEDX	49 Neutral	CHF442.33M	―		4.66%	-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.