STRATEC Biomedical (SBS) AI Stock Analysis

• Market Cap: €272.90M
• Dividend Yield: 2.67%
• Average Volume (3M): 15.55K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.44
• Revenue Growth: -1.64%
• EPS Growth: 22.60%
• Country: DE
• Employees: 1,462
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.13
• Shares Outstanding: 12,157,841
• 10 Day Avg. Volume: 11,323
• 30 Day Avg. Volume: 15,548
• PEG Ratio: 4.75
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 11.87
• 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: €34.00
• Price Target Upside: 51.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €24.00 ▲(7.14% Upside)

STRATEC Biomedical's overall stock score reflects a stable yet challenged financial performance, with declining revenue growth and free cash flow concerns. Technical analysis shows bearish trends, while valuation metrics are reasonable. The earnings call highlights both achievements and ongoing challenges, particularly in supply chain and margin pressures. The stock's moderate dividend yield adds some appeal.

Positive Factors

Partnership Development

Expanding partnerships enhance market reach and provide collaborative opportunities, supporting long-term revenue growth and innovation.

Successful Loan Acquisition

The loan acquisition enhances financial flexibility, allowing for strategic investments and operational resilience in the long term.

New CFO Appointment

A new CFO with a strong financial background can improve financial management and strategic decision-making, benefiting long-term performance.

Negative Factors

Supply Chain Disruptions

Ongoing supply chain issues can hinder product delivery and sales, impacting revenue and customer satisfaction over the medium term.

EBIT Margin Decline

Declining EBIT margins reflect operational inefficiencies and unfavorable product mix, which could pressure profitability if not addressed.

Decreased Net Income

A significant drop in net income indicates challenges in maintaining profitability, potentially affecting reinvestment and growth capacity.

STRATEC Biomedical Business Overview & Revenue Model

Company Description

STRATEC Biomedical (SBS) is a leading provider of automation and instrumentation solutions for the medical technology and diagnostics industries. The company specializes in the development and production of complex systems used in laboratories and point-of-care settings, offering products that facilitate sample preparation, analysis, and result generation. STRATEC's core offerings include fully automated systems, software solutions, and consumables that support a wide range of applications, including immunoassays, molecular diagnostics, and clinical chemistry.

How the Company Makes Money

STRATEC Biomedical generates revenue primarily through the sale of its diagnostic systems and related services. The company has a diversified revenue model that includes several key streams: direct sales of equipment and instruments to laboratories and healthcare providers, recurring revenue from consumables and service contracts, and partnerships with other companies for the development of customized solutions and co-branded products. Significant partnerships with major players in the diagnostics sector enhance STRATEC's market presence and provide additional revenue opportunities through collaborative projects. The company's focus on innovation and technology also positions it to capitalize on emerging trends in the healthcare market, contributing to its overall earnings.

STRATEC Biomedical Financial Statement Overview

Summary

STRATEC Biomedical shows a mixed financial performance with stable gross profit margins but declining net profit margins and revenue. The balance sheet indicates moderate financial stability with a manageable debt-to-equity ratio. However, the significant decrease in free cash flow raises liquidity concerns.

Income Statement

STRATEC Biomedical's income statement shows a mixed performance. The company has a stable gross profit margin of around 29.65% in TTM, indicating efficient production processes. However, the net profit margin has decreased to 6.22% in TTM, reflecting challenges in controlling costs or pricing strategies. Revenue has declined by 3.35% in TTM, suggesting potential market or competitive pressures. The EBIT and EBITDA margins are relatively healthy at 10.83% and 18.38%, respectively, but have shown a downward trend, indicating potential operational inefficiencies.

Balance Sheet

The balance sheet of STRATEC Biomedical reflects moderate financial stability. The debt-to-equity ratio stands at 0.54 in TTM, which is manageable but indicates a reliance on debt financing. The return on equity has decreased to 6.23% in TTM, suggesting reduced profitability for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets, indicating a solid capital structure.

Cash Flow

STRATEC Biomedical's cash flow statement reveals some concerns. The free cash flow has significantly decreased by 59.31% in TTM, highlighting potential liquidity issues. The operating cash flow to net income ratio is 0.54, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.63, suggesting that the company is not generating sufficient free cash flow relative to its net income, which could impact future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	256.91M	257.62M	270.41M	274.63M	287.33M	250.10M
Gross Profit	74.74M	76.39M	68.16M	79.49M	87.71M	68.99M
EBITDA	45.96M	47.34M	43.16M	57.53M	66.52M	56.72M
Net Income	15.65M	16.02M	15.37M	29.22M	39.96M	25.18M
Balance Sheet
Total Assets	431.24M	445.06M	466.58M	397.50M	368.52M	331.90M
Cash, Cash Equivalents and Short-Term Investments	24.01M	48.73M	34.22M	24.07M	48.72M	39.15M
Total Debt	132.24M	130.53M	141.37M	87.15M	85.30M	109.58M
Total Liabilities	191.16M	202.53M	233.25M	172.32M	162.77M	159.36M
Stockholders Equity	240.08M	242.53M	233.33M	225.18M	205.76M	172.54M
Cash Flow
Free Cash Flow	7.09M	30.52M	2.00M	-8.74M	43.24M	6.27M
Operating Cash Flow	21.85M	48.71M	19.43M	10.28M	63.47M	31.85M
Investing Cash Flow	-16.91M	-15.97M	-44.16M	-19.00M	-20.13M	-21.84M
Financing Cash Flow	-15.79M	-20.30M	35.44M	-14.11M	-34.33M	5.22M

STRATEC Biomedical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SBS, the sentiment is Negative. The current price of 22.4 is above the 20-day moving average (MA) of 22.39, below the 50-day MA of 23.00, and below the 200-day MA of 25.43, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SBS.

STRATEC Biomedical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EUZ	64 Neutral	€914.73M	23.56	16.93%	1.14%	9.64%	35.18%
SBS	63 Neutral	€272.90M	16.81	―	2.67%	-1.64%	22.60%
DRW3	63 Neutral	€1.17B	10.65	8.22%	2.95%	2.14%	6.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.34B	-58.47	―	―	-18.82%	-113.85%
BNN	48 Neutral	€56.37M	-4.16	-111.86%	―	-4.90%	-69.80%