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Sandoz Group Ltd Sponsored ADR (SDZNY)
:SDZNY
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Sandoz Group Ltd Sponsored ADR
(OTC:SDZNY)
Rating:59Neutral
Price Target:―
Sandoz Group Ltd Sponsored ADR (SDZNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.91B
Dividend Yield1.17%
Average Volume (3M)1.85K
Price to Earnings (P/E)247.4
Beta (1Y)0.44
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees22,049
SectorHealthcare
Sector Strength39
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.35
Shares Outstanding440,000,000
10 Day Avg. Volume2,891
30 Day Avg. Volume1,850
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.78
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: 29.84%|
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
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
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 |
| EBITDA | 742.00M | 857.00M | 1.68B | 1.83B | 1.99B |
| Net Income | 0.00 | 77.00M | -22.86K | 830.15M | 433.64M |
Balance Sheet | |||||
| Total Assets | 19.91B | 19.43B | 100.00K | 15.98B | 15.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 1.11B | 100.00K | 36.45M | 34.47M |
| Total Debt | 4.85B | 4.55B | 309.02M | 284.28M | 298.78M |
| 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
Positive
57.18
Price Trends
54.22
Positive
48.17
Positive
46.16
Positive
Market Momentum
1.42
Positive
58.91
Neutral
22.45
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 57.18 is below the 20-day moving average (MA) of 57.38, above the 50-day MA of 54.22, and above the 200-day MA of 46.16, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $45.24B | 46.52 | 1.99% | 4.25% | 1.92% | 6.40% | |
67 Neutral | $11.67B | 17.43 | 18.36% | 0.51% | 13.03% | -0.49% | |
60 Neutral | $3.66B | ― | -3.64% | 4.20% | -4.85% | -4290.31% | |
59 Neutral | $24.91B | 247.40 | 1.17% | ― | ― | ||
54 Neutral | $10.34B | ― | -21.25% | 5.45% | -6.88% | -6809.78% | |
51 Neutral | $18.79B | ― | -2.31% | ― | 2.43% | 64.37% | |
47 Neutral | C$180.10M | -3.37 | -22.01% | 3.24% | 16.92% | 2.16% |
* Healthcare Sector Average
Performance Comparison
SDZNY
Sandoz Group Ltd Sponsored ADR
57.18
16.95
42.13%
RDY
Dr Reddy's Laboratories
13.67
-2.59
-15.93%
VTRS
Viatris
8.98
-1.86
-17.16%
PRGO
Perrigo Company
26.62
-0.65
-2.38%
TEVA
Teva Pharmaceutical
15.71
-1.20
-7.10%
TAK
Takeda Pharmaceutical Company
14.20
1.41
11.02%
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.