Sandoz Group AG
Sandoz Group AG Fundamental Analysis
Sandoz Group AG (SDZ.SW) shows weak financial fundamentals with a PE ratio of 36.76, profit margin of 8.22%, and ROE of 10.09%. The company generates $11.2B in annual revenue with weak year-over-year growth of -8.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SDZ.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakSDZ.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSDZ.SW shows balanced valuation metrics.
Growth Score
WeakSDZ.SW faces weak or negative growth trends.
Financial Health Score
ExcellentSDZ.SW maintains a strong and stable balance sheet.
Profitability Score
WeakSDZ.SW struggles to sustain strong margins.
Key Financial Metrics
Is SDZ.SW Expensive or Cheap?
P/E Ratio
SDZ.SW trades at 36.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SDZ.SW's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Sandoz Group AG at 3.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.39 times EBITDA. This signals the market has high growth expectations.
How Well Does SDZ.SW Make Money?
Net Profit Margin
For every $100 in sales, Sandoz Group AG keeps $8.22 as profit after all expenses.
Operating Margin
Core operations generate 14.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.09 in profit for every $100 of shareholder equity.
ROA
Sandoz Group AG generates $4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sandoz Group AG produces operating cash flow of $1.60B, showing steady but balanced cash generation.
Free Cash Flow
Sandoz Group AG produces free cash flow of $814.04M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.88 in free cash annually.
FCF Yield
SDZ.SW converts 2.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SDZ.SW Stacks Against Its Sector Peers
| Metric | SDZ.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.76 | 28.48 | Worse (Expensive) |
| ROE | 10.09% | 777.00% | Weak |
| Net Margin | 8.22% | -20226.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.18 | 4.66 | Neutral |
| ROA | 4.17% | -14638.00% (disorted) | Weak |
SDZ.SW outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sandoz Group AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.87%
Industry Style: Defensive, Growth, Innovation
GrowingEPS CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-36.23%
Industry Style: Defensive, Growth, Innovation
Declining