STRATEC Biomedical (SBS) AI Stock Analysis

• Market Cap: €368.93M
• Dividend Yield: 1.96%
• Average Volume (3M): 18.43K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.28
• Revenue Growth: -1.64%
• EPS Growth: 22.60%
• Country: DE
• Employees: 1,462
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.09
• Shares Outstanding: 12,157,841
• 10 Day Avg. Volume: 26,187
• 30 Day Avg. Volume: 18,429
• 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: €37.00
• Price Target Upside: 21.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: €28.00 ▼(-8.35% Downside)

STRATEC Biomedical's overall stock score of 63.75 reflects moderate financial performance and a reasonable valuation. The company's operational efficiency and strong balance sheet are positive factors, but challenges in revenue growth and net income stability are significant risks. Technical analysis indicates a neutral to slightly bearish outlook, which tempers the overall score. The absence of earnings call and corporate events data limits additional insights.

STRATEC Biomedical Business Overview & Revenue Model

Company Description

Stratec SE, together with its subsidiaries, designs and manufactures automation and instrumentation solutions in the fields of in-vitro diagnostics and life sciences in Germany, European Union, and internationally. It operates through three segments: Instrumentation, Diatron, and Smart Consumables. The Instrumentation segment designs and manufactures automated analyzer systems, including service parts and consumables for clinical diagnostics and biotechnology customers. The Diatron segment offers systems, system components, consumables, and tests for the low throughput hematology and clinical chemistry applications. The Smart Consumables segment develops and manufactures smart consumables in the fields of diagnostics, life sciences, and medical technologies. The company was formerly known as STRATEC Biomedical AG and changed its name to Stratec SE in December 2018. Stratec SE was founded in 1979 and is headquartered in Birkenfeld, Germany.

How the Company Makes Money

STRATEC Biomedical generates revenue through multiple streams, primarily by providing automated diagnostic systems and associated consumables to healthcare organizations and laboratories. The company earns money from the sales of its proprietary analyzers and instruments, which are often sold in partnership with major diagnostic companies that utilize STRATEC's technology in their own products. Additionally, STRATEC benefits from recurring revenue through the sale of consumables that are required for the operation of its diagnostic systems. The company also engages in long-term contracts and collaborations with partners, which can include joint development projects and technology licensing agreements, further contributing to its revenue. Overall, STRATEC's business model is built on providing high-quality, reliable solutions that enable its customers to improve diagnostic processes and patient outcomes.

STRATEC Biomedical Financial Statement Overview

Summary

STRATEC Biomedical shows moderate financial performance with stable gross profit margins and improved operational efficiency. However, challenges in revenue growth and declining net income pose risks to sustained profitability. The balance sheet is strong with a stable equity ratio and improving leverage, but significant debt levels remain a concern. Cash flow performance is mixed, with improved operating cash flow but inconsistent free cash flow growth.

Income Statement

STRATEC Biomedical's income statement indicates moderate performance. The company has seen fluctuations in revenue, with a decline in total revenue over the past few years. Gross profit margin is relatively stable, but there is a decreasing trend in net profit. The EBIT and EBITDA margins show a slight improvement in recent years, suggesting operational efficiency. However, stagnant revenue growth and declining net income highlight potential challenges in sustaining profitability.

Balance Sheet

The balance sheet of STRATEC Biomedical reflects a strong equity base relative to its total assets, with a stable equity ratio. The debt-to-equity ratio is improving, indicating a healthier leverage position. However, the total debt level remains significant, which could pose risks if not managed properly. Return on equity has been decreasing, hinting at potential challenges in generating shareholder value.

Cash Flow

STRATEC Biomedical's cash flow statement presents a mixed picture. Operating cash flow has improved significantly, but free cash flow growth is inconsistent, reflecting fluctuating capital expenditures. The operating cash flow to net income ratio has improved, indicating better cash conversion. However, free cash flow to net income ratio remains volatile, pointing to potential issues in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.14M	257.62M	261.91M	274.63M	287.33M	250.10M
Gross Profit	77.96M	76.39M	64.84M	79.49M	87.71M	68.99M
EBITDA	45.08M	47.34M	43.16M	57.53M	66.52M	56.72M
Net Income	14.70M	16.02M	15.37M	29.22M	39.96M	25.18M
Balance Sheet
Total Assets	422.41M	445.06M	466.58M	397.50M	368.52M	331.90M
Cash, Cash Equivalents and Short-Term Investments	18.70M	48.73M	34.22M	24.07M	48.72M	39.15M
Total Debt	128.70M	130.53M	141.37M	87.15M	85.30M	109.58M
Total Liabilities	185.71M	202.53M	233.25M	172.32M	162.77M	159.36M
Stockholders Equity	236.70M	242.53M	233.33M	225.18M	205.76M	172.54M
Cash Flow
Free Cash Flow	10.98M	30.52M	2.00M	-8.74M	43.24M	6.27M
Operating Cash Flow	25.56M	48.71M	19.43M	10.28M	63.47M	31.85M
Investing Cash Flow	-16.16M	-15.97M	-44.16M	-19.00M	-20.13M	-21.84M
Financing Cash Flow	-21.09M	-20.30M	35.44M	-14.11M	-34.33M	5.22M

STRATEC Biomedical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 30.55 is above the 20-day moving average (MA) of 28.36, above the 50-day MA of 27.41, and above the 200-day MA of 27.28, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SBS.

STRATEC Biomedical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRW3	64 Neutral	€1.09B	12.20	6.82%	3.09%	-0.03%	-14.15%
SBS	64 Neutral	€368.93M	21.74	6.73%	1.96%	-1.64%	22.60%
EUZ	58 Neutral	€1.11B	30.23	16.31%	2.83%	9.42%	9.54%
BIO	55 Neutral	€1.35B	-61.38	4.97%	0.10%	-18.82%	-113.85%
BNN	51 Neutral	€47.19M	-3.65	-88.19%	―	-4.90%	-69.80%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%