Sandoz Group AG
Sandoz Group AG Fundamental Analysis
Sandoz Group AG (SDZNY) shows weak financial fundamentals with a PE ratio of 186.29, profit margin of 1.81%, and ROE of 1.92%. The company generates $9.0B 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 16.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SDZNY's fundamental strength across five key dimensions:
Efficiency Score
WeakSDZNY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSDZNY shows balanced valuation metrics.
Growth Score
WeakSDZNY faces weak or negative growth trends.
Financial Health Score
ExcellentSDZNY maintains a strong and stable balance sheet.
Profitability Score
ModerateSDZNY maintains healthy but balanced margins.
Key Financial Metrics
Is SDZNY Expensive or Cheap?
P/E Ratio
SDZNY trades at 186.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SDZNY's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Sandoz Group AG at 3.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.04 times EBITDA. This signals the market has high growth expectations.
How Well Does SDZNY Make Money?
Net Profit Margin
For every $100 in sales, Sandoz Group AG keeps $1.81 as profit after all expenses.
Operating Margin
Core operations generate 15.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.92 in profit for every $100 of shareholder equity.
ROA
Sandoz Group AG generates $0.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sandoz Group AG generates limited operating cash flow of $797.53M, signaling weaker underlying cash strength.
Free Cash Flow
Sandoz Group AG produces free cash flow of $421.90M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
SDZNY converts 1.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
186.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SDZNY Stacks Against Its Sector Peers
| Metric | SDZNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 186.29 | 29.78 | Worse (Expensive) |
| ROE | 1.92% | 792.00% | Weak |
| Net Margin | 1.81% | -23280.00% (disorted) | Weak |
| Debt/Equity | 0.65 | 0.25 | Weak (High Leverage) |
| Current Ratio | 1.29 | 4.60 | Neutral |
| ROA | 0.75% | -18077.00% (disorted) | Weak |
SDZNY 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