Sartorius (SRT) AI Stock Analysis

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Sartorius

(XETRA:SRT)

Rating:63Neutral

Price Target:

€192.00

▲(12.68%Upside)

Sartorius's overall stock score reflects solid cash flow and operational efficiency, strong earnings call outcomes, but is dampened by valuation concerns and technical analysis signals. High leverage and profitability pressures also pose risks.

Sartorius (SRT) vs. iShares MSCI Germany ETF (EWG)

Market Cap

€13.39B

Dividend Yield0.42%

Average Volume (3M)3.81K

Price to Earnings (P/E)125.5

Beta (1Y)1.62

Revenue Growth3.99%

EPS Growth-36.36%

CountryDE

Employees13,573

SectorHealthcare

Sector Strength53

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)1.22

Shares Outstanding37,440,000

10 Day Avg. Volume4,697

30 Day Avg. Volume3,806

Financial Highlights & Ratios

PEG Ratio10.40

Price to Book (P/B)4.41

Price to Sales (P/S)0.00

P/FCF Ratio19.18

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€250.00

Price Target Upside46.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Sartorius Business Overview & Revenue Model

Company DescriptionSartorius AG is a leading international pharmaceutical and laboratory equipment supplier, specializing in the biopharmaceutical industry. The company operates in two main sectors: Bioprocess Solutions and Lab Products & Services. Sartorius provides a wide range of products and services, including bioreactors, cell culture systems, filtration and purification systems, as well as laboratory instruments and consumables. These offerings support the development and manufacturing of biopharmaceuticals, vaccines, and advanced therapies.

How the Company Makes MoneySartorius AG generates revenue primarily through the sale of its bioprocess solutions and laboratory products. The Bioprocess Solutions division, which accounts for a significant portion of the company's revenue, sells equipment and technologies used in the production of biopharmaceuticals, such as filtration systems, cell culture media, and single-use bioreactors. The Lab Products & Services division provides laboratory instruments, consumables, and services that support research and quality control processes. Key revenue streams include direct sales to pharmaceutical and biotechnology companies, as well as partnerships with research institutions and industrial clients. The company's earnings are also supported by its global presence, which allows it to cater to a diverse customer base across various regions.

Sartorius Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q1-2025)

% Change Since: 5.58%|

Next Earnings Date:Jul 22, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong start to 2025 with significant growth in consumables and margin expansion. However, challenges in equipment sales, particularly in the Lab Products & Services division, and potential impacts from tariffs were noted. The overall performance was positive, with strategic acquisitions and strong cash flow contributing to an optimistic outlook.

Q1-2025 Updates

Positive Updates

Impressive Start to 2025

Sartorius reported a strong start to the fiscal year with a 6.5% sales revenue growth in constant currencies and a book-to-bill ratio above one for both divisions.

Double-Digit Growth in Consumables

The Bioprocess Solutions division saw a 10% revenue increase, driven by strong demand for consumables.

Significant Margin Expansion

Underlying EBITDA margin increased by 120 basis points to 29.8% due to scale effects, improved product mix, and efficiency programs.

Strong Cash Flow and Deleveraging

Operating cash flow tripled compared to the previous year, contributing to a reduction in the leverage ratio as planned.

Robust Regional Growth

The Americas region showed the strongest growth, with double-digit increases in the Bioprocess Solutions division.

MatTek Acquisition

Sartorius acquired MatTek, a leading provider of human cell-based microtissues and 3D models, for $80 million to enhance its advanced cell models portfolio.

Negative Updates

Challenges in Equipment Sales

The equipment business remains muted, impacting the Lab Products & Services division, which saw a sales decline of 5.5% in constant currencies.

Soft Demand in China

Sales in China were slightly below the previous year's Q1, contributing to challenges in the APAC region.

Potential Tariff Impacts

Concerns were raised about potential tariffs impacting cost structures, though mitigating measures are in place.

Company Guidance

In the first quarter of 2025, Sartorius AG and Sartorius Stedim Biotech reported a 6.5% sales revenue growth in constant currencies and a robust book-to-bill ratio above one. The Bioprocess Solutions division led the growth with a 10% increase in sales revenue, driven by strong double-digit growth in consumables, although equipment sales remained muted. The Lab Products & Services division faced challenges with a 5.5% decline in constant currencies due to soft equipment sales. The company announced its guidance for 2025, expecting approximately 6% sales revenue growth for the group, with an underlying EBITDA margin of 29% to 30%. Sartorius also highlighted a strategic acquisition of MatTek, enhancing its portfolio in advanced cell models, and discussed measures to address tariffs, aiming to maintain competitive positioning without impacting EBITDA margins.

Sartorius Financial Statement Overview

Summary

Sartorius demonstrates strong cash flow generation and operational efficiency. However, profitability pressures and high leverage pose potential risks. The company should focus on improving cost management and reducing debt levels to enhance financial stability and performance.

Income Statement

Positive

Sartorius shows moderate revenue growth with a slight increase in TTM (Trailing-Twelve-Months) revenue compared to the previous annual period. However, the gross profit margin and net profit margin have weakened over the periods, indicating pressure on cost management and profitability. The EBIT and EBITDA margins suggest operational efficiency, but the declining net income is a concern.

Balance Sheet

Positive

The company's balance sheet reflects a stable financial structure with reasonable equity levels relative to assets. However, the debt-to-equity ratio is elevated, signaling potential leverage risks. Despite this, the return on equity remains positive, indicating effective use of shareholder funds.

Cash Flow

Positive

Sartorius exhibits strong cash flow generation capabilities, with consistent operating cash flow and positive free cash flow. The free cash flow growth is encouraging, though capital expenditure levels have been high. The operating cash flow to net income ratio indicates solid cash conversion efficiency.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.44B	3.38B	3.40B	4.17B	3.45B	2.34B
	Gross Profit
1.56B	1.52B	1.57B	2.20B	1.84B	1.21B
	EBIT
493.70M	437.20M	543.20M	1.14B	735.80M	523.47M
	EBITDA
831.60M	786.80M	873.10M	1.54B	945.12M	662.13M
	Net Income Common Stockholders
125.10M	84.00M	205.20M	913.10M	426.98M	321.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
877.10M	828.70M	394.20M	196.80M	360.99M	217.65M
	Total Assets
10.11B	10.10B	9.76B	6.98B	5.70B	4.70B
	Total Debt
4.63B	4.56B	5.31B	2.54B	2.08B	2.09B
	Net Debt
3.79B	3.75B	4.93B	2.38B	1.73B	1.88B
	Total Liabilities
6.27B	6.21B	7.00B	4.32B	3.98B	3.30B
	Stockholders Equity
2.71B	2.76B	2.07B	1.99B	1.26B	1.05B
Cash Flow		Free Cash Flow
687.30M	566.30M	293.90M	211.60M	458.65M	271.27M
	Operating Cash Flow
1.04B	976.20M	853.60M	734.20M	865.81M	511.52M
	Investing Cash Flow
-374.40M	-425.80M	-2.82B	-1.13B	-569.61M	-1.27B
	Financing Cash Flow
-944.30M	-128.30M	2.17B	209.90M	-165.18M	907.47M

Sartorius Technical Analysis

Technical Analysis Sentiment

Negative

Last Price170.40

Price Trends

50DMA

174.72

Negative

100DMA

182.99

Negative

200DMA

184.38

Negative

Market Momentum

MACD

-2.75

Negative

RSI

45.53

Neutral

STOCH

65.13

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SRT, the sentiment is Negative. The current price of 170.4 is below the 20-day moving average (MA) of 171.63, below the 50-day MA of 174.72, and below the 200-day MA of 184.38, indicating a bearish trend. The MACD of -2.75 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SRT.

Sartorius Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	$51.37B	24.68	11.14%	2.06%	5.83%	13.44%
FME	68 Neutral	€14.52B	23.49	4.37%	2.91%	0.10%	27.83%
AFX	64 Neutral	€5.54B	34.98	7.48%	0.97%	5.21%	-39.36%
SRT	63 Neutral	€13.39B	125.50	3.55%	0.42%	3.99%	-36.36%
FRE	61 Neutral	€24.52B	58.70	6.28%	2.27%	-18.90%	―
MRK	59 Neutral	€49.85B	17.69	9.74%	1.92%	2.38%	3.49%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%

* Healthcare Sector Average

Performance Comparison

DE:SRT

Sartorius

170.40

-24.18

-12.43%

DE:FME

Fresenius Medical Care AG & Co. KGaA

47.28

11.62

32.57%

DE:AFX

Carl Zeiss Meditec

60.00

-5.79

-8.80%

DE:FRE

Fresenius SE & Co. KGaA

43.01

15.04

53.79%

DE:MRK

Merck KGaA

112.10

-53.98

-32.50%

DE:SHL

Siemens Healthineers AG

45.87

-5.70

-11.05%

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.