Sandoz Group Ltd Sponsored ADR (SDZNY) AI Stock Analysis

Compare

83 Followers

Top Page

Sandoz Group Ltd Sponsored ADR

(OTC:SDZNY)

Rating:59Neutral

Price Target:―

Sandoz Group's overall performance is currently challenged by profitability issues despite stable revenue growth and a robust balance sheet. Technical analysis suggests mixed signals, with bearish momentum overshadowing potential overbought conditions. Valuation metrics are unfavorable due to profitability challenges, resulting in a below-average stock score.

Sandoz Group Ltd Sponsored ADR (SDZNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$23.39B

Dividend Yield1.27%

Average Volume (3M)1.03K

Price to Earnings (P/E)247.4

Beta (1Y)0.44

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees22,049

SectorHealthcare

Sector Strength55

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)-0.35

Shares Outstanding440,000,000

10 Day Avg. Volume0

30 Day Avg. Volume1,028

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Sandoz Group Ltd Sponsored ADR Business Overview & Revenue Model

Company DescriptionSandoz Group AG develops, manufactures, and markets generic pharmaceuticals and biosimilars worldwide. It develops, manufactures, and markets finished dosage forms of small molecule pharmaceuticals to third parties. It also provides protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services; and anti-infectives, such as active pharmaceutical ingredients and intermediates primarily antibiotics. The company was founded in 1886 and is headquartered in Rotkreuz, Switzerland.

How the Company Makes MoneySandoz Group Ltd generates revenue primarily through the sale of generic pharmaceutical products and biosimilars. Its revenue model is driven by the manufacturing and distribution of these affordable alternatives to branded drugs, which attract both healthcare providers and patients seeking cost-effective treatment options. The company benefits from its strong global presence, allowing it to tap into emerging markets and expand its customer base. Additionally, strategic partnerships and collaborations with healthcare organizations and research institutions enhance its market reach and innovation capabilities, contributing to its earnings.

Sandoz Group Ltd Sponsored ADR Earnings Call Summary

Earnings Call Date:Mar 05, 2025

(Q4-2023)

% Change Since: 18.19%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

Sandoz demonstrated strong sales growth and strategic advancements, particularly in the biosimilars segment, and successfully transitioned to an independent company. However, financial challenges such as negative free cash flow and decreased core EBITDA margin due to high costs and currency impacts present notable concerns.

Q4-2023 Updates

Positive Updates

Strong Regional Performance

North American sales were up 20% in Q4 2023, marking a significant return to growth, driven by strong biosimilar performance and strategic pipeline rebuilding.

Biosimilars Growth

Biosimilars sales grew by 26% in Q4 and 15% for the full year, with key contributors being Omnitrope and the launch of Hyrimoz in the U.S.

Successful Spin-Off

Completed a successful spin from the former parent company, secured long-term financing, and ensured business continuity as an independent public company.

Strategic Acquisitions and Partnerships

Acquired CIMERLI to expand the U.S. retina market presence and entered a multiyear agreement with Cordavis to expand Hyrimoz reach.

Environmental and Sustainability Commitments

Submitted a commitment letter to the Science Based Targets Initiative to set carbon emission reduction targets in line with the Paris Agreement.

Negative Updates

Negative Free Cash Flow

Free cash flow was negative $234 million in 2023 due to significant investments related to the transition to a standalone company.

Core EBITDA Margin Decline

Core EBITDA margin decreased by 3.2 percentage points to 18.1%, affected by inflation, marketing and sales investments, and foreign currency headwinds.

Legal and Separation Costs

Incurred $829 million in core adjustments, including legal costs of $576 million and separation costs of $155 million.

Company Guidance

During the earnings call for the fourth quarter of 2023, Sandoz provided several key metrics and guidance for the upcoming year. The company reported a 10% increase in fourth-quarter sales, reaching $2.5 billion, with full-year sales growing 7% to $9.6 billion. This growth was driven by a 26% increase in biosimilar sales and a 6% rise in generics, supported by volume gains and lower-than-expected price erosion. Sandoz's core EBITDA for 2023 was $1.7 billion, representing an 18.1% margin, despite challenges from inflation and foreign exchange impacts. The company expects mid-single-digit net sales growth in constant currencies for 2024 and aims to increase its core EBITDA margin to around 20%. Sandoz also plans to focus on operational efficiencies and biosimilar launches to sustain growth and expand margins, projecting biosimilars to account for 30% of sales by 2028.

Sandoz Group Ltd Sponsored ADR Financial Statement Overview

Summary

Sandoz Group has shown moderate revenue growth and stable gross margins, but there are significant profitability challenges. The balance sheet is robust with a healthy equity ratio, though leverage has increased. Improved cash flow positions are noted, but the lack of net income raises concerns about sustainable profitability.

Income Statement

Positive

Sandoz Group's revenue has shown a moderate growth of 3.99% from 2023 to 2024. However, the net profit margin is concerning as the company reported a net income of zero in 2024, down from a previous net income of $77 million in 2023, indicating pressure on profitability. Gross profit margin remains strong at 47.43%, but the decline in EBIT margin to 2.96% suggests operational challenges.

Balance Sheet

Positive

The company maintains a stable equity position with an equity ratio of 41.01%. However, the debt-to-equity ratio has increased slightly to 0.59, indicating a moderate level of leverage. Return on equity is significantly affected due to the net income of zero in 2024, highlighting a need for improved profitability.

Cash Flow

Neutral

Free cash flow has improved from a negative position in 2023 to a positive $60 million in 2024, indicating better cash management. However, the operating cash flow to net income ratio is not meaningful due to zero net income, suggesting reliance on non-operational cash flow sources.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
10.38B	9.98B	8.86B	8.79B	9.04B
	Gross Profit
4.93B	4.56B	4.15B	4.15B	4.16B
	EBIT
307.00M	375.00M	-22.50K	1.38B	1.34B
	EBITDA
742.00M	857.00M	1.68B	1.83B	1.99B
	Net Income Common Stockholders
0.00	77.00M	-22.86K	830.15M	433.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.11B	100.00K	36.45M	34.47M
	Total Assets
19.91B	19.43B	100.00K	15.98B	15.86B
	Total Debt
4.85B	4.55B	309.02M	284.28M	298.78M
	Net Debt
3.66B	3.44B	308.92M	247.83M	264.30M
	Total Liabilities
11.74B	10.78B	22.86K	8.55B	9.04B
	Stockholders Equity
8.16B	8.64B	77.14K	7.43B	6.82B
Cash Flow		Free Cash Flow
60.00M	-263.00M	760.23M	855.75M	720.86M
	Operating Cash Flow
656.00M	362.00M	1.17B	1.24B	1.03B
	Investing Cash Flow
-740.00M	-614.00M	-410.68M	-631.76M	-514.36M
	Financing Cash Flow
242.00M	1.24B	-734.45M	-600.67M	-513.42M

Sandoz Group Ltd Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price52.05

Price Trends

50DMA

44.81

Positive

100DMA

44.81

Positive

200DMA

43.74

Positive

Market Momentum

MACD

2.28

Negative

RSI

68.69

Neutral

STOCH

76.61

Neutral

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 52.05 is above the 20-day moving average (MA) of 49.86, above the 50-day MA of 44.81, and above the 200-day MA of 43.74, indicating a bullish trend. The MACD of 2.28 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.61 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	77 Outperform	$13.18B	19.79	18.36%	0.60%	13.26%	1.33%
EHC	68 Neutral	$12.02B	24.61	25.33%	0.57%	11.21%	30.38%
BNTX	61 Neutral	$25.70B	―	-3.87%	―	0.58%	-764.64%
SDZNY	59 Neutral	$23.39B	247.40		1.27%	―	―
TEVA	57 Neutral	$20.84B	―	-18.98%	―	3.38%	-175.90%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
VTRS	53 Neutral	$10.61B	―	-21.25%	5.31%	-6.88%	-6809.78%

* Healthcare Sector Average

Performance Comparison

SDZNY

Sandoz Group Ltd Sponsored ADR

53.09

17.47

49.05%

RDY

Dr Reddy's Laboratories

16.17

1.71

11.83%

EHC

Encompass Health

120.18

35.85

42.51%

VTRS

Viatris

9.09

-0.83

-8.37%

TEVA

Teva Pharmaceutical

17.71

0.31

1.78%

BNTX

BioNTech SE

104.92

8.92

9.29%

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.