Sartorius (SRT3) AI Stock Analysis

• Market Cap: €12.79B
• Dividend Yield: 0.38%
• Average Volume (3M): 132.51K
• Price to Earnings (P/E): 134.5
• Beta (1Y): 1.63
• Revenue Growth: 3.80%
• EPS Growth: 33.31%
• Country: DE
• Employees: 13,573
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.22
• Shares Outstanding: 37,440,000
• 10 Day Avg. Volume: 210,679
• 30 Day Avg. Volume: 132,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €257.36
• Price Target Upside: 32.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: €204.00 ▲(5.29% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and operational efficiency. However, high leverage and cash flow challenges pose significant risks. The technical analysis indicates a cautious outlook with some bullish momentum, while the high valuation suggests limited upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates Sartorius's expanding market presence and product adoption, supporting long-term business sustainability.

Operational Efficiency

Healthy EBIT and EBITDA margins demonstrate effective cost management and operational efficiency, which are crucial for sustaining profitability.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, enhancing long-term financial stability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial health and investment capacity.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could constrain future investments and operational resilience.

Modest Return on Equity

A modest return on equity suggests limited profitability relative to shareholder equity, potentially affecting investor returns and capital attraction.

Sartorius Business Overview & Revenue Model

Company Description

Sartorius Aktiengesellschaft provides bioprocess solutions and lab products and services worldwide. The company offers biosensors and kits, compliance tools, systems software, label-free detection systems, and SPR systems; live-cell analysis systems, flow cytometry platform, and cell analysis reagents and consumables; and antibody and recombinant protein media, viral vaccines media, regenerative medicine media, general media, downstream buffer, microcarrier, and stem cell media and reagent products, as well as strong acids, bases, and alcohols and detergents. It also provides multi-parallel bioreactors, benchtop bioreactors, single-use bioreactors, stainless steel bioreactors, cell culture bioreactors, microbial bioreactors, and software apps for bioreactors; membranes, blotting products, filter papers, glass and quartz microfibre products, and filtration equipment; syringe filters; and filtration devices, ultrafiltration devices, sterile filtration devices, harvesting devices, analytical sample prep systems, buffer exchange systems, diagnostic sample prep systems, particle analysis systems, pharmaceutical filtration systems, protein DNA concentration systems, venting moisture barriers, clarification systems, buffer and media products, and membrane chromatography products. In addition, the company offers process filtration products; process filtration products; process chromatography products; fluid management products; process analytical technology and data analytics; industrial microbiology systems; water purification systems; weighing systems; pipetting and dispensing systems; OEM systems; and centrifuges. Further, it provides bioprocess development and engineering, protein expression system, media and process, testing, instrument, and validation services. It serves the life science research, biopharmaceutical manufacturing, quality control and testing, and applied industries. The company was founded in 1870 and is headquartered in Göttingen, Germany.

How the Company Makes Money

Sartorius generates revenue through multiple key streams, primarily focused on the sale of laboratory and bioprocessing equipment, consumables, and services. The Bioprocess Solutions segment accounts for a significant portion of its revenue, driven by demand from the biopharmaceutical industry for products used in drug development and manufacturing. Key revenue streams include sales of filtration systems, fermenters, cell culture media, and other bioprocessing consumables. The Lab Products & Services segment contributes by providing instruments, consumables, and services for laboratories across various industries. Sartorius also engages in strategic partnerships and collaborations with pharmaceutical companies and research institutions, which enhance its product offerings and market reach, further contributing to its earnings.

Sartorius Financial Statement Overview

Summary

Sartorius demonstrates strong revenue growth and operational efficiency, as reflected in its income statement. However, high leverage and modest return on equity present potential financial risks. Cash flow metrics indicate challenges in cash generation, which could impact liquidity. Overall, the company shows solid performance but needs to address leverage and cash flow issues to strengthen its financial position.

Income Statement

Sartorius shows a strong gross profit margin of 45.76% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 3.86%, suggesting high operational costs or other expenses. Revenue growth is positive at 68.5% in TTM, reflecting robust sales performance. EBIT and EBITDA margins are healthy at 12.50% and 24.80%, respectively, showing good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 1.75 in TTM, indicating significant leverage, which could pose financial risks. Return on equity is modest at 4.95%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 26.51%, showing a balanced asset financing structure but with room for improvement in equity financing.

Cash Flow

Free cash flow growth is negative at -16.30% in TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.59, suggesting that operating cash flow is not fully covering net income. The free cash flow to net income ratio is 0.63, showing some cash generation relative to net income but highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.47B	3.38B	3.40B	4.17B	3.45B	2.34B
Gross Profit	1.59B	1.52B	1.57B	2.20B	1.84B	1.21B
EBITDA	860.00M	786.80M	873.10M	1.54B	945.12M	662.13M
Net Income	133.70M	84.00M	205.20M	913.10M	426.98M	321.47M
Balance Sheet
Total Assets	10.03B	10.10B	9.76B	6.98B	5.70B	4.70B
Cash, Cash Equivalents and Short-Term Investments	871.80M	828.70M	394.20M	196.80M	360.99M	217.65M
Total Debt	4.66B	4.56B	5.31B	2.54B	2.08B	2.09B
Total Liabilities	6.23B	6.21B	7.00B	4.32B	3.98B	3.30B
Stockholders Equity	2.66B	2.76B	2.07B	1.99B	1.26B	1.05B
Cash Flow
Free Cash Flow	575.30M	566.30M	293.90M	211.60M	458.65M	271.27M
Operating Cash Flow	918.80M	976.20M	853.60M	734.20M	865.81M	511.52M
Investing Cash Flow	-354.40M	-425.80M	-2.82B	-1.13B	-569.61M	-1.27B
Financing Cash Flow	-344.00M	-128.30M	2.17B	209.90M	-165.18M	907.47M

Sartorius Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 193.75
• 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 DE:SRT3, the sentiment is Negative. The current price of 193.75 is below the 20-day moving average (MA) of 198.95, below the 50-day MA of 194.45, and below the 200-day MA of 218.02, indicating a bearish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 23.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SRT3.

Sartorius Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	50.49B	23.15	12.29%	2.10%	5.85%	16.20%
FME	70 Outperform	12.69B	19.27	4.95%	3.30%	0.53%	23.79%
FRE	69 Neutral	25.84B	23.11	6.15%	2.16%	-0.59%	―
MRK	65 Neutral	46.35B	16.13	10.13%	2.06%	1.67%	9.02%
AFX	60 Neutral	3.78B	24.12	8.75%	1.42%	5.21%	-39.36%
SRT3	58 Neutral	€12.79B	134.50	3.88%	0.38%	3.80%	33.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%