Sartorius (SRT3) AI Stock Analysis

• Market Cap: €14.62B
• Dividend Yield: 0.3%
• Average Volume (3M): 153.86K
• Price to Earnings (P/E): 101.8
• Beta (1Y): 1.53
• Revenue Growth: 5.82%
• EPS Growth: 59.90%
• Country: DE
• Employees: 13,573
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.26
• Shares Outstanding: 37,440,000
• 10 Day Avg. Volume: 126,110
• 30 Day Avg. Volume: 153,863
• PEG Ratio: 1.32
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 4.82
• P/FCF Ratio: 79.72
• 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: €264.82
• Price Target Upside: 13.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €228.00 ▼(-2.27% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by leveraged and weakening cash-flow conversion despite an operational recovery, plus bearish technical signals. A very high P/E with minimal dividend yield further reduces the margin of safety.

Positive Factors

Market leadership & recurring revenue

Sartorius's focus on bioprocess solutions and lab products gives durable customer stickiness: equipment, consumables and service contracts create recurring revenue and long-term relationships with pharma and research customers, supporting stable demand and predictable aftermarket sales.

Strong 2025 revenue rebound and operating margins

A material 2025 revenue recovery with improved operating margins demonstrates the company's ability to scale and regain operating leverage after a downturn. Sustained margin recovery increases internal cash generation capacity and validates manufacturing/service economics across business cycles.

Structural demand tailwinds from biologics

Long-term industry trends—rising biologics, cell and gene therapies and personalized medicine—expand addressable markets for bioprocess equipment and consumables. This structural growth supports repeat consumable sales and equipment upgrades over multiple years.

Negative Factors

Elevated leverage

A relatively high debt-to-equity ratio increases sensitivity to profit swings and refinancing risk. Elevated leverage limits financial flexibility for M&A, capex or shareholder returns and raises interest burden risk if earnings or cash flow soften over the medium term.

Weakened cash conversion

A sharp drop in free cash flow and weak FCF-to-net-income reduces capacity to deleverage, fund organic investment, or support dividends. Persistent weak cash conversion heightens funding reliance on debt or equity and constrains capital allocation flexibility.

Thin net margin and profitability volatility

A low net margin after operating recovery implies significant non-operating costs or pricing/competitive pressure. Thin bottom-line conversion makes earnings vulnerable to cost inflation, pricing headwinds or one-time charges and reduces resilience to cyclical downturns.

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

Income statement shows a strong 2025 revenue rebound and improved operating margins, but net margin remains thin versus prior peaks. Balance sheet leverage is a key constraint (debt-to-equity ~1.65). Cash flow quality weakened in 2025 with lower free cash flow and weak cash conversion versus net income.

Income Statement

Revenue rebounded strongly in 2025 (annual revenue growth ~59%), but the longer trend shows meaningful volatility with declines in 2023–2024 after a very strong 2022. Profitability has recovered from the 2024 trough (EBIT margin ~18% and EBITDA margin ~30% in 2025), yet net margin remains thin (~4%) and well below prior peaks (2022 net margin ~22%), suggesting higher costs, pricing pressure, and/or heavier non-operating burdens are still weighing on bottom-line conversion.

Balance Sheet

Leverage is the key constraint: debt remains elevated versus equity (debt-to-equity ~1.65 in 2025, and it spiked to ~2.57 in 2023). While equity has improved versus 2023, the capital structure is still relatively debt-heavy for a medical instruments supplier, which can limit flexibility if earnings weaken. Assets are sizable and stable, but the balance sheet profile is more leveraged than ideal and increases sensitivity to refinancing and profitability swings.

Cash Flow

Cash generation weakened notably in 2025: free cash flow fell ~35% and free cash flow covered only about one-third of net income (~0.33), indicating weaker cash conversion versus prior years (e.g., 2024 free cash flow to net income ~0.58). Operating cash flow remained positive, but the drop from 2024 alongside lower free cash flow suggests working-capital or investment demands increased, reducing the cash available for debt reduction, buybacks, or dividends.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.54B	3.38B	3.40B	4.17B	3.45B
Gross Profit	1.64B	1.52B	1.57B	2.20B	1.84B
EBITDA	1.07B	786.80M	873.10M	1.50B	945.12M
Net Income	154.90M	84.00M	205.20M	913.10M	426.98M
Balance Sheet
Total Assets	9.72B	10.10B	9.76B	6.98B	5.70B
Cash, Cash Equivalents and Short-Term Investments	541.40M	828.70M	394.20M	196.80M	360.99M
Total Debt	4.45B	4.56B	5.31B	2.54B	2.08B
Total Liabilities	5.85B	6.21B	7.00B	4.32B	3.98B
Stockholders Equity	2.71B	2.76B	2.07B	1.99B	1.26B
Cash Flow
Free Cash Flow	214.10M	566.30M	293.90M	211.60M	458.65M
Operating Cash Flow	656.00M	976.20M	853.60M	734.20M	865.81M
Investing Cash Flow	-513.50M	-425.80M	-2.82B	-1.13B	-569.61M
Financing Cash Flow	-410.60M	-128.30M	2.17B	209.90M	-165.18M

Sartorius Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 233.30
• 50DMA: Negative
• 100DMA: Negative
• 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:SRT3, the sentiment is Negative. The current price of 233.3 is below the 20-day moving average (MA) of 236.00, below the 50-day MA of 245.36, and above the 200-day MA of 221.91, indicating a neutral trend. The MACD of -5.08 indicates Negative momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 60.31 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
MRK	76 Outperform	€54.56B	18.52	10.32%	1.82%	1.47%	9.64%
AFX	65 Neutral	€2.37B	16.44	6.79%	1.50%	7.82%	-19.80%
FME	64 Neutral	€11.12B	12.32	5.41%	3.54%	2.10%	9.19%
FRE	62 Neutral	€28.08B	25.49	7.50%	2.05%	0.63%	―
SHL	58 Neutral	€46.86B	21.97	11.45%	2.13%	4.53%	10.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRT3	46 Neutral	€14.62B	101.76	5.01%	0.30%	5.82%	59.90%