Sartorius Stedim Biotech (DIM) AI Stock Analysis

• Market Cap: €19.88B
• Dividend Yield: 0.31%
• Average Volume (3M): 78.09K
• Price to Earnings (P/E): 75.3
• Beta (1Y): 1.36
• 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: €235.00
• Price Target Upside: 15.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €215.00 ▲(5.24% Upside)

Sartorius Stedim Biotech's overall stock score reflects solid financial performance with stable revenue growth and healthy margins. However, challenges such as declining net income and free cash flow growth, along with a high P/E ratio indicating potential overvaluation, weigh on the score. Technical indicators suggest mixed momentum, with some signs of potential oversold conditions.

Positive Factors

Revenue Growth

The company's stable revenue growth indicates a strong market position and consistent demand for its products, supporting long-term business sustainability.

Operational Efficiency

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

Recurring Revenue Model

A strong recurring revenue model from consumables and services provides financial stability and predictability, enhancing long-term business resilience.

Negative Factors

Declining Net Income

A decline in net income can impact profitability and indicates potential issues in cost management or external pressures, affecting long-term financial health.

Decreasing Free Cash Flow

Decreasing free cash flow growth may limit the company's ability to invest in growth opportunities or manage debt, posing a risk to future financial flexibility.

Decreasing ROE

A decreasing ROE suggests reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence and long-term growth prospects.

Sartorius Stedim Biotech Business Overview & Revenue Model

Company Description

Sartorius Stedim Biotech (DIM) is a global leader in the biopharmaceutical industry, specializing in providing integrated solutions for the development and production of biotechnology and pharmaceutical products. The company operates primarily in the biotechnology and life sciences sectors, offering a wide range of products and services that include bioprocess solutions, laboratory instruments, and consumables tailored for vaccine production, cell and gene therapy, and other biopharmaceutical applications.

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	2.95B	2.78B	2.78B	3.49B	2.89B	1.91B
Gross Profit	1.34B	1.21B	1.23B	1.83B	1.55B	1.00B
EBITDA	808.00M	670.50M	755.70M	1.33B	811.96M	569.20M
Net Income	263.90M	175.10M	309.70M	876.10M	414.40M	335.93M
Balance Sheet
Total Assets	7.88B	8.26B	7.74B	5.07B	3.95B	3.07B
Cash, Cash Equivalents and Short-Term Investments	298.70M	688.80M	126.10M	133.00M	237.35M	69.61M
Total Debt	2.56B	2.87B	3.68B	1.14B	625.52M	586.78M
Total Liabilities	3.81B	4.23B	5.07B	2.55B	2.22B	1.59B
Stockholders Equity	4.04B	3.99B	2.64B	2.45B	1.66B	1.46B
Cash Flow
Free Cash Flow	233.90M	475.30M	156.10M	181.70M	371.98M	257.69M
Operating Cash Flow	590.00M	815.10M	629.70M	612.30M	695.97M	416.88M
Investing Cash Flow	-359.10M	-340.00M	-2.72B	-957.50M	-465.23M	-621.12M
Financing Cash Flow	-414.50M	84.90M	1.99B	220.70M	-71.71M	234.07M

Sartorius Stedim Biotech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 204.30
• 50DMA: Positive
• 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 FR:DIM, the sentiment is Neutral. The current price of 204.3 is below the 20-day moving average (MA) of 206.77, above the 50-day MA of 201.31, and above the 200-day MA of 191.07, indicating a neutral trend. The MACD of 1.98 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€99.78B	11.15	8.39%	4.76%	-9.82%	119.10%
VIRP	75 Outperform	€2.93B	22.00	12.92%	0.41%	6.97%	-5.59%
IPN	70 Outperform	€9.95B	22.21	10.82%	1.16%	9.57%	-34.30%
BIM	66 Neutral	€12.86B	34.00	9.69%	0.83%	8.28%	-8.08%
ERF	64 Neutral	€11.25B	26.36	11.27%	0.97%	6.25%	18.93%
DIM	61 Neutral	€19.88B	75.33	6.65%	0.31%	7.72%	53.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%