Siegfried SFZN.SW
What does Siegfried do?
Siegfried is a Swiss contract development and manufacturing organization (CDMO) serving the pharmaceutical industry. The company produces active pharmaceutical ingredients as well as finished dosage forms on behalf of pharmaceutical and biotechnology customers. In the active ingredient business, it develops exclusive syntheses for individual customers and also manufactures non-exclusive active ingredients, for example for anesthesia, pain and addiction treatment, disorders of the central nervous system and respiratory tract, as well as caffeine.
In finished drug products, Siegfried covers, among other things, sterile filling in vials, ampoules, cartridges and prefilled syringes, as well as ophthalmic and inhalation products. The business rests on long-term customer relationships, high regulatory requirements and technical know-how in chemical synthesis and sterile manufacturing. Competitors include other international CDMOs as well as in-house production by pharmaceutical groups. Its positioning as an integrated provider of active ingredients and finished products from a single source is intended to retain customers.
Score profile
Rank vs. Drug Manufacturers - Specialty & Generic (25 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Siegfried ranks in the middle in the group Drug Manufacturers - Specialty & Generic (4.6/10). On growth, the company ranks in the middle in the group Drug Manufacturers - Specialty & Generic (4.8/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Drug Manufacturers - Specialty & Generic (4.2/10). On financial strength, Siegfried ranks in the middle in the group Drug Manufacturers - Specialty & Generic (4.6/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 15.2x | 13.0x | better than 31 % |
| Trailing P/E | 18.3x | 18.3x | better than 50 % |
| PEG ratio | 1.4x | 1.4x | better than 55 % |
| EV/EBITDA | 12.5x | 11.1x | better than 43 % |
| Price/sales | 2.3x | 2.0x | better than 38 % |
| Price/book | 3.2x | 3.0x | better than 48 % |
| Revenue growth | 2.2% | 8.2% | better than 30 % |
| Earnings growth | 4.0% | 0.0% | better than 66 % |
| Gross margin | 27.0% | 63.8% | better than 6 % |
| Operating margin | 14.1% | 15.9% | better than 46 % |
| Net margin | 12.8% | 10.9% | better than 66 % |
| Return on equity | 17.0% | 8.2% | better than 66 % |
| Debt/equity | 93.1% | 84.9% | better than 46 % |
| Current ratio | 3.5x | 2.2x | better than 90 % |
| Free cash flow yield | -4.4% | 6.0% | better than 2 % |
| Dividend yield | 0.6% | 2.3% | – |
| Payout ratio | 10.3% | 28.8% | – |
| Beta | 0.78 | 0.71 | – |
Valuation: what is Siegfried worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Siegfried a model range of 60.96 CHF to 61.53 CHF per share.
12 analysts, average rating “Buy”, average price target 99.42 CHF (+39.0%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Revenue and earnings depend on pharmaceutical customers' demand for outsourced active ingredient and drug product manufacturing.
- Long-term supply contracts and the approval of customer products support predictable utilization of the production sites.
- A high share of complex, quality-intensive services and well-utilized facilities support profitability.
Risks
- Dependence on individual large customers and products can weigh on earnings if demand declines or a contract is lost.
- Violations of quality and regulatory requirements can lead to production stoppages, recalls and reputational damage.
- High investment in capacity carries the risk of weak utilization, and fluctuations in raw material, energy and exchange rates also put pressure on the margin.
What to look for with Siegfried
The operating margin (EBITDA margin) shows how well utilization, product mix and cost control work together in a capital-intensive contract manufacturing business.