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1. Company Snapshot

1.a. Company Description

Siegfried Holding AG engages in the life sciences business worldwide.The company develops and produces active pharmaceutical ingredients (APIs) and intermediates, as well as finished dosage forms, including solid oral dosage forms, and sterile and aseptic filling injectables, ophthalmics, and inhalative products.It offers contract development and manufacturing services, including pharmaceutical and analytical development, process and analytical transfer, commercial manufacturing and packaging, and scale up and clinical trial material production.


In addition, the company provides APIs and controlled substances focusing on anesthetics, pain treatment applications, and central nervous and respiratory diseases.Further, it licenses oral solid and sterile products; assembles registration dossiers; and offers a common technical document for various products.The company was founded in 1873 and is headquartered in Zofingen, Switzerland.

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1.b. Last Insights on SFZN

Siegfried Holding AG's recent performance was positively driven by strategic acquisitions, including the purchase of Noramco, Extractas Biosciences, and Purisys from SK Capital Partners. This expansion enhances the company's portfolio and capabilities. Additionally, the company's visibility as a potential undervalued player in the market may have attracted attention. With 47% of shares held by retail investors, the recent surge in value likely benefited this significant ownership group. No recent earnings release or share buyback information was available to further inform the analysis.

1.c. Company Highlights

2. Siegfried's 2025 Earnings: A Strong Performance

The company's financial performance in 2025 was impressive, with sales growing by 4.3% in local currencies to CHF 1.33 billion, driven by operational efficiency measures, portfolio optimization, and diligent financial management. The core EBITDA margin expanded significantly from 17.7% to 23.5%, exceeding expectations. The actual EPS came out at 2.36, beating estimates of 2.17. The company's cash flow improved by 35% year-over-year, driven by higher profitability and disciplined working capital management.

Publication Date: Feb -24

📋 Highlights
  • Profitable Growth: Core EBITDA margin reached 23.5%, up from 17.7%, driven by operational efficiency and portfolio optimization.
  • Acquisition Impact: Noramco and Extractas acquisitions expected to boost 2026 top and bottom line performance significantly.
  • Financial Strength: Sales hit CHF 1.33 billion (+4.3% local currencies), with cash flow up 35% YoY due to disciplined working capital management.
  • Strategic Flexibility: Net debt-to-EBITDA ratio at 1.0x ensures financial flexibility for future investments and shareholder returns.
  • 2026 Outlook: High single-digit Drug Products growth and low single-digit Drug Substance growth anticipated, with core EBITDA margin above 23%.

Financial Highlights

The company's results confirmed the strength of its diversified portfolio, operational efficiency, and financial management. The acquisition of Noramco and Extractas is expected to increase the company's guidance significantly. The net debt-to-EBITDA ratio stands at 1.0x, giving the company financial flexibility for future investments. The company's balance sheet is solid, and the Board of Directors has decided to increase the distribution to shareholders.

Outlook and Guidance

The company expects high single-digit growth in Drug Products and low single-digit growth in Drug Substance for 2026. The group is expected to grow at a low single-digit rate, with a core EBITDA margin above 23%. The company is confident in its ability to deliver on its guidance and outpace market growth. The momentum in Drug Products is significant, and the company is well-positioned to capture the trend in protein degraders.

Valuation Metrics

Using the current valuation metrics, the company's P/E Ratio stands at 20.49, and the EV/EBITDA ratio is 12.96. The ROE is 15.68%, indicating a strong return on equity. The Net Debt / EBITDA ratio is 1.56, which is relatively low. Analysts estimate next year's revenue growth at 9.1%, which is slightly higher than the company's guidance. Marcel Imwinkelried's statement that the company's focus is on profitable growth rather than just top-line sales growth reinforces the analysis that the company is on track to deliver strong financial performance.

Growth Prospects

The company's growth prospects are promising, driven by the acquisition of Noramco and Extractas, and the expected growth in Drug Products and protein degraders. The company's diversified portfolio and operational excellence are expected to contribute to its structural growth trajectory. The company's strong balance sheet and financial flexibility will enable it to pursue future investments and acquisitions.

3. NewsRoom

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Siegfried Holding AG (XSWX:SFZN) Full Year 2025 Earnings Call Highlights: Profitable Growth ...

Feb -24

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Is Siegfried Holding AG (VTX:SFZN) Potentially Undervalued?

Feb -09

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SK Capital Partners Announces Agreement to Sell Noramco, Extractas Biosciences, and Purisys to Siegfried Holding AG

Jan -27

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Siegfried Holding AG (VTX:SFZN) surges 4.6%; retail investors who own 47% shares profited along with institutions

Jan -26

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Estimating The Intrinsic Value Of Siegfried Holding AG (VTX:SFZN)

Nov -17

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Will Weakness in Siegfried Holding AG's (VTX:SFZN) Stock Prove Temporary Given Strong Fundamentals?

Sep -12

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Siegfried Holding First Half 2025 Earnings: Revenues Beat Expectations, EPS Lags

Aug -26

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With 49% stake, Siegfried Holding AG (VTX:SFZN) seems to have captured institutional investors' interest

Aug -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.65%)

6. Segments

Drug Substances

Expected Growth: 5%

Siegfried Holding AG's Drug Substances segment growth is driven by increasing demand for complex APIs, strategic partnerships, and capacity expansions. The company's expertise in HPAPIs and ADCs, coupled with a strong pipeline of new projects, contributes to its growth. Additionally, the rising need for outsourcing in the pharmaceutical industry and Siegfried's ability to provide integrated services also support its growth momentum.

Drug Products

Expected Growth: 7%

Siegfried Holding AG's 7% growth in drug products is driven by increasing demand for contract manufacturing services, expansion into emerging markets, and strategic partnerships. Additionally, investments in capacity expansion, process optimization, and quality enhancements have improved operational efficiency, contributing to revenue growth.

7. Detailed Products

Active Pharmaceutical Ingredients (APIs)

Siegfried Holding AG develops and manufactures high-quality Active Pharmaceutical Ingredients (APIs) for the pharmaceutical industry.

Contract Manufacturing

Siegfried Holding AG offers contract manufacturing services for pharmaceutical and biotech companies, providing customized solutions for drug development and production.

Pharmaceutical Intermediates

Siegfried Holding AG develops and manufactures pharmaceutical intermediates, which are used as building blocks for the production of APIs.

Custom Synthesis

Siegfried Holding AG provides custom synthesis services, developing and manufacturing complex molecules for pharmaceutical and biotech companies.

Analytical Services

Siegfried Holding AG offers analytical services, providing testing and characterization of pharmaceutical products and APIs.

8. Siegfried Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Siegfried Holding AG is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Siegfried Holding AG is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Siegfried Holding AG is moderate, as the company has some negotiating power, but suppliers also have some bargaining power.

Threat Of New Entrants

The threat of new entrants for Siegfried Holding AG is high, as the industry is attractive and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Siegfried Holding AG is high, as the industry is highly competitive and there are many players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.33%
Debt Cost 3.95%
Equity Weight 63.67%
Equity Cost 7.15%
WACC 5.98%
Leverage 57.05%

11. Quality Control: Siegfried Holding AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ipsen

A-Score: 6.0/10

Value: 4.8

Growth: 6.0

Quality: 7.9

Yield: 1.2

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Almirall

A-Score: 5.1/10

Value: 4.3

Growth: 2.2

Quality: 5.0

Yield: 1.9

Momentum: 9.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Hikma Pharmaceuticals

A-Score: 5.0/10

Value: 5.5

Growth: 4.4

Quality: 6.3

Yield: 5.6

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Sobi

A-Score: 4.8/10

Value: 2.8

Growth: 7.3

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Siegfried Holding

A-Score: 4.3/10

Value: 4.6

Growth: 7.4

Quality: 5.5

Yield: 0.6

Momentum: 0.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Alvotech

A-Score: 2.9/10

Value: 6.0

Growth: 5.6

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.6$

Current Price

81.6$

Potential

-0.00%

Expected Cash-Flows