Sartorius (SRT3) AI Stock Analysis

• Market Cap: €15.07B
• Dividend Yield: 0.3%
• Average Volume (3M): 153.86K
• Price to Earnings (P/E): 57.3
• Beta (1Y): 1.52
• 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: -2.98
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 4.39
• P/FCF Ratio: 26.21
• 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: €263.00
• Price Target Upside: 7.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €258.00 ▲(5.91% Upside)

The score is held back mainly by high leverage and weakening free cash flow alongside a premium valuation (high P/E, low yield). These are partly offset by steady operations and mid-cycle technical positioning, with the stock remaining above longer-term moving averages despite mixed momentum indicators.

Positive Factors

Market Leadership

Sartorius's two-division model (bioprocess and laboratory) positions it as an essential supplier across drug development and manufacturing. Diversified product lines and established relationships with pharma customers create durable revenue streams and reduce single-market dependency over the medium term.

Margin Profile

Stable gross margins near 46% and strong EBIT/EBITDA margins reflect efficient manufacturing, pricing power, and cost control in core products. These operating margins support ongoing investment in R&D and capacity, sustaining competitive positioning across bioprocess and lab segments.

Secular Industry Tailwinds

Structural growth in biologics and personalized therapies expands Sartorius's addressable market for single-use systems, chromatography, and services. Secular demand underpins multi-quarter visibility into order pipelines and recurring service revenue, supporting steady medium-term demand.

Negative Factors

High Leverage

Elevated leverage limits financial flexibility, increases interest expense sensitivity, and raises refinancing risk if rates or cash generation worsen. Over a 2–6 month horizon, high debt constrains capital allocation choices for M&A, capex, or shareholder returns and amplifies downside risk.

Declining Free Cash Flow

A sharp FCF drop materially reduces ability to pay down debt, fund growth, or return capital. Moderate operating cash conversion versus net income signals weaker cash quality and makes the business more dependent on external financing for strategic initiatives, raising structural funding risk.

Low Net Returns

Despite healthy operating margins, low net margin and ROE indicate financing costs or non-operating items erode shareholder returns. Persistently weak net profitability limits retained earnings, dividend capacity, and resilience to cyclical pressure, undermining long-term shareholder value creation.

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

Operational metrics are solid (EBIT margin 12.50%, EBITDA margin 24.80%) with modest TTM revenue growth (1.43%), but profitability and financial flexibility are pressured by a low net margin (3.86%), high leverage (debt-to-equity 1.75), and a sharp TTM free cash flow decline (-42.34%).

Income Statement

Sartorius shows a modest revenue growth of 1.43% in the TTM, recovering from a slight decline in the previous year. The gross profit margin remains stable at around 45.76%, indicating consistent cost management. However, the net profit margin is relatively low at 3.86%, suggesting challenges in converting revenue into profit. EBIT and EBITDA margins are healthy at 12.50% and 24.80%, respectively, reflecting efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 1.75, indicating significant leverage, which could pose financial risks. Return on equity is low at 4.95%, suggesting limited returns for shareholders. The equity ratio stands at 27.76%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Operating cash flow to net income ratio is 0.59, indicating moderate cash generation relative to net income. Free cash flow has decreased significantly by 42.34% in the TTM, which could impact future investments. The free cash flow to net income ratio is 0.63, showing a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.52B	3.38B	3.40B	4.17B	3.45B	2.34B
Gross Profit	1.64B	1.52B	1.57B	2.20B	1.84B	1.21B
EBITDA	916.80M	786.80M	873.10M	1.50B	945.12M	662.13M
Net Income	169.20M	84.00M	205.20M	913.10M	426.98M	321.47M
Balance Sheet
Total Assets	9.61B	10.10B	9.76B	6.98B	5.70B	4.70B
Cash, Cash Equivalents and Short-Term Investments	389.90M	828.70M	394.20M	196.80M	360.99M	217.65M
Total Debt	4.27B	4.56B	5.31B	2.54B	2.08B	2.09B
Total Liabilities	5.80B	6.21B	7.00B	4.32B	3.98B	3.30B
Stockholders Equity	2.67B	2.76B	2.07B	1.99B	1.26B	1.05B
Cash Flow
Free Cash Flow	331.70M	566.30M	293.90M	211.60M	458.65M	271.27M
Operating Cash Flow	727.40M	976.20M	853.60M	734.20M	865.81M	511.52M
Investing Cash Flow	-474.90M	-425.80M	-2.82B	-1.13B	-569.61M	-1.27B
Financing Cash Flow	-448.60M	-128.30M	2.17B	209.90M	-165.18M	907.47M

Sartorius Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 243.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 243.6 is below the 20-day moving average (MA) of 253.50, below the 50-day MA of 249.93, and above the 200-day MA of 221.84, indicating a neutral trend. The MACD of -1.72 indicates Positive momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 44.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€53.85B	18.09	10.32%	1.82%	1.47%	9.64%
SHL	67 Neutral	€47.76B	22.02	11.45%	2.13%	4.53%	10.12%
AFX	65 Neutral	€2.48B	17.08	6.79%	1.50%	7.82%	-19.80%
FME	64 Neutral	€11.70B	15.86	5.41%	3.54%	2.10%	9.19%
FRE	62 Neutral	€27.45B	24.14	7.50%	2.05%	0.63%	―
SRT3	54 Neutral	€15.07B	57.26	5.01%	0.30%	5.82%	59.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%