Sartorius Stedim Biotech (DIM) AI Stock Analysis

• Market Cap: €19.50B
• Dividend Yield: 0.3%
• Average Volume (3M): 78.09K
• Price to Earnings (P/E): 73.9
• Beta (1Y): 1.42
• Revenue Growth: 7.72%
• EPS Growth: 53.84%
• Country: FR
• Employees: 9,961
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.94
• Shares Outstanding: 97,330,410
• 10 Day Avg. Volume: 78,938
• 30 Day Avg. Volume: 78,094
• PEG Ratio: -2.26
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 6.57
• P/FCF Ratio: 38.42
• 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: €228.57
• Price Target Upside: 7.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €221.00 ▲(3.61% Upside)

The overall stock score of 67 reflects a strong technical performance and robust financial health, tempered by a high valuation. The company's financial stability and positive market momentum are significant strengths, but the high P/E ratio and low dividend yield suggest potential overvaluation. Investors should monitor cash flow trends and valuation metrics closely.

Positive Factors

Business Model Strength

The company's leadership in biopharmaceutical manufacturing and laboratory services highlights its strong business model, providing innovative solutions that enhance efficiency and effectiveness in the life sciences sector.

Market Position

Strategic partnerships with major pharmaceutical and biotech firms strengthen Sartorius Stedim Biotech's market position, expanding its reach and sales opportunities, which supports long-term growth and competitive advantage.

Margin Sustainability

Strong EBIT and EBITDA margins indicate efficient operations and sustainable profitability, which are crucial for maintaining financial health and supporting future investments in innovation and expansion.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth suggests potential challenges in cash flow management, which could impact the company's ability to invest in growth opportunities and maintain financial flexibility.

Revenue Growth Challenges

Slower revenue growth compared to previous years may indicate challenges in maintaining growth momentum, which could affect long-term expansion and market competitiveness if not addressed.

Return on Equity

A modest return on equity indicates that the company may not be generating sufficient returns for shareholders, which could impact investor confidence and the ability to attract new investment.

Sartorius Stedim Biotech Business Overview & Revenue Model

Company Description

Sartorius Stedim Biotech S.A. produces and sells instruments and consumables for the biopharmaceutical industry worldwide. The company offers various products, such as cell lines; cell culture media; bioreactors; and a range of products for separation, purification, and concentration processes, as well as products and systems for storage and transportation of intermediate and finished biological products. It also provides cell cultivation, fermentation, filtration, purification, and fluid management services; single-use and reusable hollow-fiber membrane devices, as well as presterilized assemblies for cell and gene therapy applications; and cell harvesting and various other solutions for intensified bioprocesses. In addition, the company offers data analytics software for modeling and optimizing processes of biopharmaceutical development and production. It serves manufacturers of pharmaceuticals, foods, and chemicals, as well as research and development laboratories. The company was founded in 1870 and is headquartered in Aubagne, France. Sartorius Stedim Biotech S.A. is a subsidiary of Sartorius AG.

How the Company Makes Money

Sartorius Stedim Biotech generates revenue through several key streams, primarily by selling bioprocessing equipment, consumables, and services to the pharmaceutical and biotechnology sectors. The company’s revenue model is heavily reliant on the sale of single-use technologies, fermentation systems, and filtration products, which are essential in the production of biologics. Furthermore, Sartorius benefits from long-term partnerships with major pharmaceutical companies, providing them with tailored solutions that enhance production efficiency and compliance. The recurring revenue from consumables and services, including maintenance and technical support, also contributes significantly to its earnings. The company's strategic investments in research and development help maintain its competitive edge, while acquisitions of complementary businesses further expand its market reach and product offerings.

Sartorius Stedim Biotech Financial Statement Overview

Summary

Sartorius Stedim Biotech demonstrates a robust financial position with strong profitability and efficient operations. The balance sheet is stable with manageable leverage, although the return on equity could be improved. Cash flow generation remains solid, but the recent decline in free cash flow growth is a concern. Overall, the company is well-positioned in its industry, but it should focus on enhancing growth and cash flow management to sustain its financial health.

Income Statement

Sartorius Stedim Biotech shows a solid performance with a TTM gross profit margin of 44.63% and a net profit margin of 7.78%. The revenue growth rate of 1.35% in the TTM indicates a stable growth trajectory, although it is lower compared to previous years. The EBIT and EBITDA margins are healthy at 14.77% and 25.55% respectively, reflecting efficient operations. However, the decline in revenue from 2022 to 2023 highlights potential challenges in maintaining growth momentum.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.74 in the TTM, indicating a balanced leverage position. Return on equity is modest at 5.68%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 48.15%, reflecting a strong equity base. The overall stability of the balance sheet is commendable, though the lower ROE is a point of concern.

Cash Flow

The operating cash flow to net income ratio of 0.83 in the TTM indicates strong cash generation relative to net income. However, the free cash flow growth rate has declined by 14.93%, signaling potential cash flow management issues. The free cash flow to net income ratio of 0.63 suggests adequate cash flow coverage, but the negative growth trend in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90B	2.78B	2.78B	3.49B	2.89B	1.91B
Gross Profit	1.29B	1.21B	1.23B	1.83B	1.55B	1.00B
EBITDA	739.90M	670.50M	755.70M	1.33B	811.96M	569.20M
Net Income	225.20M	175.10M	309.70M	876.10M	414.40M	335.93M
Balance Sheet
Total Assets	8.31B	8.26B	7.74B	5.07B	3.95B	3.07B
Cash, Cash Equivalents and Short-Term Investments	745.10M	688.80M	126.10M	133.00M	237.35M	69.61M
Total Debt	2.97B	2.87B	3.68B	1.14B	625.52M	586.78M
Total Liabilities	4.27B	4.23B	5.07B	2.55B	2.22B	1.59B
Stockholders Equity	4.00B	3.99B	2.64B	2.45B	1.66B	1.46B
Cash Flow
Free Cash Flow	496.50M	475.30M	156.10M	181.70M	371.98M	257.69M
Operating Cash Flow	788.10M	815.10M	629.70M	612.30M	695.97M	416.88M
Investing Cash Flow	-292.80M	-340.00M	-2.72B	-957.50M	-465.23M	-621.12M
Financing Cash Flow	-250.10M	84.90M	1.99B	220.70M	-71.71M	234.07M

Sartorius Stedim Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DIM, the sentiment is Positive. The current price of 213.3 is above the 20-day moving average (MA) of 198.20, above the 50-day MA of 197.63, and above the 200-day MA of 190.42, indicating a bullish trend. The MACD of 4.71 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:DIM.

Sartorius Stedim Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAN	75 Outperform	$105.23B	11.68	8.39%	4.61%	-9.82%	119.10%
VIRP	75 Outperform	€2.90B	21.78	12.92%	0.41%	6.97%	-5.59%
IPN	70 Outperform	€10.27B	22.92	10.82%	1.15%	9.57%	-34.30%
DIM	67 Neutral	€19.50B	73.89	6.65%	0.30%	7.72%	53.84%
BIM	66 Neutral	€12.90B	34.12	9.69%	0.86%	8.28%	-8.08%
ERF	64 Neutral	€10.90B	25.53	11.27%	1.02%	6.25%	18.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%