Sandoz Group Ltd Sponsored ADR (SDZNY)
OTHER OTC:SDZNY
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Sandoz Group Ltd Sponsored ADR
(OTC:SDZNY)
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Rating:64Neutral
Price Target:
$88.00
▲(16.09% Upside)
Action:Reiterated
Date:03/10/26
The score is driven primarily by improving financial performance (profitability and cash flow rebounding with manageable leverage), supported by a positive earnings outlook and margin-expansion guidance. This is tempered by mixed near-term technical signals and only moderate valuation support (modest dividend yield), alongside stated pricing and one-off cost headwinds.
Positive Factors
Biosimilars Momentum
Biosimilars reaching ~30% of sales and showing double‑digit growth shifts revenue toward higher‑margin biologics. That improves revenue quality and reduces dependence on commoditized generics. Coupled with the Just‑Evotec acquisition and a Slovenia hub, it strengthens development and manufacturing scale advantages for durable competitive positioning.
Negative Factors
Price Erosion
Persistent low‑to‑mid single‑digit price erosion is a structural pressure in generics markets. Over time this compresses unit revenues and limits margin expansion unless offset by higher‑margin mix or sustained cost reductions. It forces continuous efficiency gains or strategic shift toward biosimilars to maintain long‑run profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Biosimilars Momentum
Biosimilars reaching ~30% of sales and showing double‑digit growth shifts revenue toward higher‑margin biologics. That improves revenue quality and reduces dependence on commoditized generics. Coupled with the Just‑Evotec acquisition and a Slovenia hub, it strengthens development and manufacturing scale advantages for durable competitive positioning.
Read all positive factors
Sandoz Group Ltd Sponsored ADR (SDZNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.91B
Dividend Yield0.98%
Average Volume (3M)17.90K
Price to Earnings (P/E)39.4
Beta (1Y)0.66
Revenue Growth7.54%
EPS GrowthN/A
CountryUS
Employees22,049
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.12
Shares Outstanding440,000,000
10 Day Avg. Volume5,853
30 Day Avg. Volume17,903
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.34
Price to Sales (P/S)2.81
P/FCF Ratio38.74
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit7.86
Enterprise Value/Ebitda18.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sandoz Group Ltd Sponsored ADR Business Overview & Revenue Model
Company Description
Sandoz Group AG operates as a global pharmaceutical enterprise, primarily focusing on the development, manufacturing, and commercialization of generic medicines and biosimilars. Their offerings include finished dosage forms of small molecule pharm...
How the Company Makes Money
Sandoz generates revenue primarily through the sale of its generic drugs and biosimilars. The company's revenue model is based on pricing strategies that allow for competitive pricing against branded counterparts while maintaining margins. Key rev...
Sandoz Group Ltd Sponsored ADR Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance with multiple clear achievements: revenue exceeded $11 billion, biosimilars gained share and drove margin expansion, cash generation and EPS improved materially, and strategic investments (Just-Evotec acquisition and a Slovenian biosimilars hub) position the company for future growth. Notable near-term headwinds include penicillin B2B price disruption, ongoing low- to mid-single-digit price erosion, FX impacts on reported net debt, one-off integration and IT costs, and regulatory/IP uncertainties (especially in the U.S.) that could affect timing and scale of some opportunities. On balance, the highlights (broad-based sales growth, margin expansion, strong cash flow, successful launches, strengthened pipeline and manufacturing investments) outweigh the lowlights, which are significant but largely manageable and either transient or being mitigated through strategic actions.Positive Updates
Record Annual Net Sales Above $11 Billion
Net sales surpassed $11.0 billion for the first time, reported at $11.1 billion with growth of ~5% at constant currencies (Remco cited underlying growth of 6%). Q4 marked the 17th consecutive quarter of sales growth.
Negative Updates
Penicillin B2B Business Disruption
Adverse impact from Asian suppliers' aggressive price dumping for key penicillin APIs reduced sales value in H2 2025; management expects these adverse dynamics to persist into H1 2026 and notes potential market distortions from India minimum import price changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Net Sales Above $11 Billion
Net sales surpassed $11.0 billion for the first time, reported at $11.1 billion with growth of ~5% at constant currencies (Remco cited underlying growth of 6%). Q4 marked the 17th consecutive quarter of sales growth.
Read all positive updates
Company Guidance
Sandoz guided 2026 net sales to grow mid‑ to high‑single‑digit percentage in constant currencies (with an estimated ~2 percentage‑point currency tailwind based on recent spot/Jan‑2026 rates) and targeted about a 100 basis‑point expansion in core EBITDA margin versus 2025’s 21.7% (implying ≈22.7%), while expecting price erosion of low‑ to mid‑single‑digit percent; they warned the penicillin B2B headwind should persist in H1 2026 and flagged a one‑off Just‑Evotec integration cost in France, forecast CapEx of ~USD 1.1bn (peak year, mainly for biosimilars), one‑off costs of ~USD 0.3bn in 2026 (USD 0.7bn combined for 2025–26), and roughly USD 50m of software (SaaS) implementation costs likely again in 2026, with no material FX impact expected on the core EBITDA margin.Sandoz Group Ltd Sponsored ADR Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.15B | 10.38B | 11.66B | 9.30B | 9.62B |
| Gross Profit | 5.24B | 4.93B | 5.33B | 4.38B | 4.54B |
| EBITDA | 2.26B | 742.00M | 1.00B | 1.66B | 1.82B |
| Net Income | 919.12M | 1.00M | 89.99M | 847.75M | 907.82M |
Balance Sheet | |||||
| Total Assets | 22.03B | 19.91B | 22.71B | 17.55B | 17.48B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 1.19B | 1.30B | 80.01M | 39.86M |
| Total Debt | 5.68B | 4.85B | 5.32B | 4.18B | 4.93B |
| Total Liabilities | 12.65B | 11.74B | 12.59B | 8.80B | 9.35B |
| Stockholders Equity | 9.38B | 8.16B | 10.10B | 83.41K | 8.12B |
Cash Flow | |||||
| Free Cash Flow | 810.00M | 60.00M | -307.36M | 821.99M | 935.82M |
| Operating Cash Flow | 1.59B | 656.00M | 423.06M | 1.22B | 1.35B |
| Investing Cash Flow | -980.00M | -740.00M | -717.57M | -464.93M | -690.87M |
| Financing Cash Flow | -197.00M | 242.00M | 1.45B | -831.47M | -656.87M |
Sandoz Group Ltd Sponsored ADR Technical Analysis
Positive
75.80
Price Trends
83.05
Positive
81.92
Positive
74.36
Positive
Market Momentum
0.54
Negative
54.60
Neutral
83.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDZNY, the sentiment is Positive. The current price of 75.8 is below the 20-day moving average (MA) of 82.55, below the 50-day MA of 83.05, and above the 200-day MA of 74.36, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 83.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDZNY.
Sandoz Group Ltd Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $11.21B | 24.66 | 11.76% | 0.64% | -1.06% | -26.71% | |
64 Neutral | $36.91B | 39.42 | 10.09% | 0.98% | 7.54% | ― | |
62 Neutral | $49.50B | 40.30 | 2.61% | 3.86% | -0.47% | -225.21% | |
61 Neutral | $36.50B | 23.15 | 20.79% | ― | 5.76% | ― | |
56 Neutral | $17.90B | -59.89 | -1.97% | 3.99% | 2.14% | 91.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.42B | -0.78 | -50.65% | 8.48% | -3.62% | -932.84% |
* Healthcare Sector Average
SDZNY
Sandoz Group Ltd Sponsored ADR
84.36
31.39
59.27%
RDY
Dr Reddy's Laboratories
13.29
-1.86
-12.30%
VTRS
Viatris
15.37
6.84
80.12%
PRGO
Perrigo Company
10.25
-14.16
-58.02%
TEVA
Teva Pharmaceutical
31.48
14.53
85.72%
TAK
Takeda Pharmaceutical Company
15.63
0.86
5.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.