Stevanato Group (STVN) AI Stock Analysis

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Stevanato Group

(NYSE:STVN)

Rating:74Outperform

Price Target:

$27.00

▲(20.75%Upside)

Stevanato Group receives a strong score driven by solid financial performance and positive technical indicators. While high valuations and challenges in specific segments present risks, the company's growth trajectory and recent operational improvements provide a positive outlook. The balanced score reflects the company's potential and the need for improvement in cash management and valuation.

Positive Factors

Capacity Expansion

The accelerated capacity expansion gives STVN a unique opportunity to capture share in the sterile cartridge market.

Market Demand

The strong performance in BDS was driven by improvements at the Latina and Fishers facilities and strong demand in high-value prefilled syringes.

Revenue Growth

BDS revenue grew by 11% year over year to €221M, coming in ahead of expectations.

Negative Factors

Engineering Revenue

Engineering revenue declined by 4% year over year due to lower sales from visual inspection and glass conversion lines.

Free Cash Flow

In FY25, free cash flow is expected to be negative, but capex is expected to normalize in FY26 and turn free cash flow positive.

Profitability Guidance

Management reiterated its revenue outlook for the year, while slightly adjusting down its profitability guidance due to the gross impact of tariffs.

Stevanato Group (STVN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.95B

Dividend Yield0.26%

Average Volume (3M)292.33K

Price to Earnings (P/E)44.2

Beta (1Y)0.60

Revenue Growth2.84%

EPS Growth-11.34%

CountryUS

Employees5,521

SectorHealthcare

Sector Strength41

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)0.11

Shares Outstanding49,604,650

10 Day Avg. Volume194,968

30 Day Avg. Volume292,327

Financial Highlights & Ratios

PEG Ratio-1.21

Price to Book (P/B)4.02

Price to Sales (P/S)0.00

P/FCF Ratio-42.55

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$25.70

Price Target Upside14.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Stevanato Group Business Overview & Revenue Model

Company DescriptionStevanato Group (STVN) is a global leader in providing comprehensive solutions for the pharmaceutical and healthcare industries. The company specializes in the production of glass primary packaging, integrated systems, and specialty components, focusing on high-quality and innovative solutions. With a strong emphasis on research and development, Stevanato Group offers a wide range of products and services, including glass vials, syringes, and diagnostic equipment, catering to the needs of pharmaceutical companies and beyond.

How the Company Makes MoneyStevanato Group generates revenue through the manufacturing and sale of high-quality glass primary packaging and integrated systems for the pharmaceutical and healthcare sectors. The company’s key revenue streams include the sale of glass vials and syringes, as well as the provision of custom solutions and diagnostic equipment. Stevanato Group benefits from long-term partnerships with major pharmaceutical companies, leveraging these relationships to secure consistent demand for their products. Additionally, the company invests in technological innovation and R&D to enhance its product offerings, ensuring a competitive edge in the market. Stevanato's geographic diversity and strong operational infrastructure further contribute to its ability to capture value across various markets worldwide.

Stevanato Group Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 2.85%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive start to fiscal 2025 with robust revenue growth and operational improvements in the BDS segment. However, challenges remain in the Engineering segment and due to tariff impacts. The positive aspects slightly outweigh the negatives, indicating a cautiously optimistic outlook for the year.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

The company reported a 9% increase in revenue in the first quarter of 2025, driven by a strong performance in the Biopharmaceutical and Diagnostics Solutions Segment.

High-Value Solutions Growth

Revenue from high-value solutions grew 25% in the first quarter to EUR 110.3 million, accounting for 43% of total revenue.

Operational Improvements in BDS Segment

The BDS segment saw an 11% growth in revenue, supported by improvements at Latina and Fishers facilities.

Margin Expansion

Consolidated gross profit margin increased by 80 basis points to 27.2%, while operating profit margin increased by 280 basis points to 13.5%.

Order Intake Growth

Double-digit growth in order intake for both bulk and sterile vials compared to the previous year.

Negative Updates

Engineering Segment Revenue Decline

Revenue from the Engineering segment decreased by 4% due to lower sales from pharmaceutical visual inspection and glass conversion lines.

Margins Impacted by Legacy Projects

Engineering segment's gross profit margins were below expectations, decreasing to 10.7% due to unfavorable project mix related to legacy projects in Denmark.

Tariff Impact

Estimated EUR 4.5 million impact on operating profit due to tariffs, affecting earnings per share by approximately EUR 0.01.

Company Guidance

In the Stevanato Group's first quarter 2025 results call, the company reported a 9% revenue growth, reaching EUR 256.6 million, driven by an 11% increase in the Biopharmaceutical and Diagnostics Solutions (BDS) segment, which offset a 4% decline in the Engineering segment. High-value solutions, including a partial recovery in EZ-fill vials, accounted for 43% of total revenue, growing 25% year-over-year to EUR 110.3 million. The company's gross profit margin increased by 80 basis points to 27.2%, while the operating profit margin rose by 280 basis points to 13.5%. Adjusted EBITDA was EUR 57.4 million, with a margin improvement of 100 basis points to 22.4%. The company also updated its full-year guidance, expecting revenue between EUR 1.160 billion and EUR 1.190 billion and adjusted EBITDA between EUR 288.5 million and EUR 301.8 million, factoring in an anticipated EUR 4.5 million impact from tariffs.

Stevanato Group Financial Statement Overview

Summary

Stevanato Group exhibits strong financial performance with consistent revenue growth and stable profitability. The balance sheet is robust with increased equity, though rising liabilities require attention. Cash flow management needs improvement as free cash flow has been negative due to high capital expenditures.

Income Statement

Positive

Stevanato Group has shown consistent revenue growth with a notable increase from $536.5M in 2019 to $1.1B in 2024. The gross profit margin has been stable, reflecting efficient cost management, though it decreased slightly from 2023 to 2024. Despite a lower net income in 2024 compared to 2023, the company maintains a solid EBIT and EBITDA margin, supporting its profitability.

Balance Sheet

Positive

The company's balance sheet reflects a healthy equity position with a significant increase in stockholders' equity from $265.5M in 2019 to $1.4B in 2024. The debt-to-equity ratio remains manageable, indicating prudent leverage. However, the increase in total liabilities highlights the need for monitoring future debt levels.

Cash Flow

Positive

Stevanato Group's operating cash flow has increased, showcasing strong operational efficiency. However, free cash flow has been negative in recent years due to substantial capital expenditures, impacting cash flow health. The cash flow to net income ratios suggest the need for improved cash management strategies.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.10B	1.09B	983.70M	843.90M	662.04M
	Gross Profit
302.32M	339.89M	319.80M	265.40M	194.18M
	EBIT
161.14M	200.72M	152.58M	128.12M	103.11M
	EBITDA
247.80M	272.35M	256.40M	226.93M	156.38M
	Net Income Common Stockholders
117.78M	145.63M	142.85M	134.32M	78.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.27M	72.18M	256.65M	438.21M	157.12M
	Total Assets
2.33B	2.07B	1.66B	1.42B	967.98M
	Total Debt
428.97M	396.59M	218.37M	244.29M	363.01M
	Net Debt
330.70M	326.99M	-10.37M	-166.75M	247.41M
	Total Liabilities
924.43M	938.93M	663.79M	577.18M	657.84M
	Stockholders Equity
1.40B	1.13B	995.90M	841.70M	310.50M
Cash Flow		Free Cash Flow
-157.79M	-336.72M	-139.83M	20.12M	59.65M
	Operating Cash Flow
155.78M	105.21M	103.30M	133.30M	155.66M
	Investing Cash Flow
-310.21M	-421.22M	-243.00M	-96.40M	-96.09M
	Financing Cash Flow
183.22M	158.03M	-44.50M	254.80M	-26.52M

Stevanato Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price22.36

Price Trends

50DMA

21.88

Positive

100DMA

21.50

Positive

200DMA

20.87

Positive

Market Momentum

MACD

0.05

Positive

RSI

48.60

Neutral

STOCH

17.31

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STVN, the sentiment is Positive. The current price of 22.36 is below the 20-day moving average (MA) of 23.13, above the 50-day MA of 21.88, and above the 200-day MA of 20.87, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 17.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STVN.

Stevanato Group Risk Analysis

Stevanato Group disclosed 63 risk factors in its most recent earnings report. Stevanato Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Stevanato Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	76 Outperform	$5.59B	46.23	9.16%	―	8.24%	18.54%
STVN	74 Outperform	$5.95B	44.17	9.08%	0.26%	2.84%	-11.34%
ICUI	68 Neutral	$3.21B	―	-4.62%	―	7.19%	-56.19%
TFX	58 Neutral	$5.37B	38.28	3.48%	1.12%	0.29%	-48.98%
BLCO	57 Neutral	$4.06B	―	-5.56%	―	11.94%	-6.98%
RGEN	56 Neutral	$6.99B	―	-1.16%	―	4.88%	-196.93%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%

* Healthcare Sector Average

Performance Comparison

STVN

Stevanato Group

23.24

4.67

25.15%

ICUI

ICU Medical

131.36

19.19

17.11%

MMSI

Merit Medical Systems

94.26

11.88

14.42%

RGEN

Repligen

126.55

-19.23

-13.19%

TFX

Teleflex

122.46

-88.33

-41.90%

BLCO

Bausch + Lomb Corporation

11.51

-3.81

-24.87%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.