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Sandoz Group Ltd Sponsored ADR
(OTC:SDZNY)
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Rating:61Neutral
Price Target:
$106.00
▲(15.72% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improving fundamentals (2025 recovery and manageable leverage) and a constructive earnings-call outlook with reaffirmed growth and margin guidance. Offsetting factors are weak near-term technical momentum and a valuation that appears high versus a modest dividend yield.
Positive Factors
Biosimilar Growth and Pipeline
Biosimilars are becoming a larger growth engine, with 20% H1 growth and 33% of sales, while a 36-asset pipeline and multiple approvals expand future launch opportunities. This supports portfolio diversification and a durable position in a growing off-patent biologics market.
Negative Factors
Pricing Erosion
Management now expects mid-single-digit pricing declines in 2026, revised higher than its prior view, with Germany and North America cited as drivers. Persistent erosion can offset volume and biosimilar growth, limiting revenue quality and putting pressure on the margin trajectory.
Read all positive and negative factors
Positive Factors
Negative Factors
Biosimilar Growth and Pipeline
Biosimilars are becoming a larger growth engine, with 20% H1 growth and 33% of sales, while a 36-asset pipeline and multiple approvals expand future launch opportunities. This supports portfolio diversification and a durable position in a growing off-patent biologics market.
Read all positive factors
Sandoz Group Ltd Sponsored ADR (SDZNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.00B
Dividend Yield1.02%
Average Volume (3M)1.65K
Price to Earnings (P/E)67.0
Beta (1Y)0.69
Revenue Growth9.56%
EPS Growth180.05%
CountryUS
Employees23,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.50
Shares Outstanding440,000,000
10 Day Avg. Volume0
30 Day Avg. Volume1,652
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.34
Price to Sales (P/S)2.81
P/FCF Ratio38.74
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue3.85
Enterprise Value/Gross Profit8.09
Enterprise Value/Ebitda18.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sandoz Group Ltd Sponsored ADR Business Overview & Revenue Model
Company Description
Sandoz Group AG develops, manufactures, and markets generic and biosimilars worldwide. The company covers therapeutic areas, including cardiovascular, central nervous system, oncology, infectious diseases, pain and respiratory, supportive care, ra...
Sandoz Group Ltd Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive performance story: strong biosimilar-led top-line growth, margin expansion, resilient cash generation despite a significant CapEx cycle, an enlarged 36-asset biosimilar pipeline, major product launches with leading market shares, and strategic investments (Ljubljana center) that support medium-term growth. Near-term challenges include increased pricing erosion (now expected mid-single-digit), temporary generics headwinds (notably in Q1 and in some international markets), short-term tender/pricing disruption in Germany, elevated one-off and settlement-related cash outflows, and a heavier CapEx profile in 2026. Management reaffirmed 2026 guidance and emphasized confidence in 2027–2028 growth driven by upcoming launches and the multisource GLP-1 strategy. On balance, the positives around revenue momentum, profitability improvement, pipeline breadth, and strong commercial execution outweigh the near-term operational and pricing headwinds.Positive Updates
Top-line Growth
Net sales increased 5% in H1 (10% in USD) to USD 5.8bn with accelerating momentum into Q2 (+7% overall; North America +15% H1, +18% Q2).
Negative Updates
Generics Headwinds
Generics experienced a modest decline in H1 due to temporary headwinds (notably adverse anti-infectives B2B dynamics in Q1); generics only returned to low single-digit growth in Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth
Net sales increased 5% in H1 (10% in USD) to USD 5.8bn with accelerating momentum into Q2 (+7% overall; North America +15% H1, +18% Q2).
Read all positive updates
Company Guidance
Management confirmed 2026 guidance: net sales are expected to increase mid‑ to high‑single‑digit at constant currencies (H1 sales were USD 5.8bn, +5% cc), core EBITDA margin is targeted to expand by around 100 basis points (H1 margin 20.9%, +90bps Y/Y), and overall pricing is now expected to decline by a mid‑single‑digit percentage in 2026 (revised from a prior low‑to‑mid‑single‑digit view). They now assume a ~2 percentage‑point FX tailwind to net sales for the year (previously ~4pp) and still do not expect material FX impact on the core EBITDA margin; CapEx is expected to peak this cycle at ~USD 1.1bn (H1 CapEx ≈ USD 500m) while management free cash flow remained around USD 500m in H1, one‑off costs are expected at ~USD 0.3bn for the year, and the balance sheet targets include net debt/EBITDA below 2x (net debt ≈ USD 3.5bn, net‑debt-to-core‑EBITDA 1.4x, gross debt USD 5.9bn, liquidity USD 2.3bn, average borrowing cost <4%).Sandoz Group Ltd Sponsored ADR Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.62B | 11.15B | 10.38B | 11.66B | 9.30B | 9.62B |
| Gross Profit | 5.52B | 5.24B | 4.93B | 5.33B | 4.38B | 4.54B |
| EBITDA | 2.48B | 2.26B | 742.00M | 1.00B | 1.73B | 1.87B |
| Net Income | 645.84M | 919.12M | 1.00M | 89.99M | 847.75M | 907.82M |
Balance Sheet | ||||||
| Total Assets | 22.79B | 22.03B | 19.91B | 22.71B | 17.55B | 17.48B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.74B | 1.19B | 1.30B | 80.01M | 39.86M |
| Total Debt | 6.20B | 5.68B | 4.85B | 5.32B | 4.18B | 4.93B |
| Total Liabilities | 13.79B | 12.65B | 11.74B | 12.59B | 8.80B | 9.35B |
| Stockholders Equity | 9.00B | 9.38B | 8.16B | 10.10B | 83.41K | 8.12B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | 810.00M | 60.00M | -307.36M | 821.99M | 935.82M |
| Operating Cash Flow | 1.72B | 1.59B | 656.00M | 423.06M | 1.22B | 1.35B |
| Investing Cash Flow | -2.06B | -980.00M | -740.00M | -717.57M | -464.93M | -690.87M |
| Financing Cash Flow | 159.95M | -197.00M | 242.00M | 1.45B | -831.47M | -656.87M |
Sandoz Group Ltd Sponsored ADR Technical Analysis
Positive
91.60
Price Trends
87.73
Positive
86.45
Positive
83.96
Positive
Market Momentum
3.85
Negative
69.65
Neutral
80.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDZNY, the sentiment is Positive. The current price of 91.6 is below the 20-day moving average (MA) of 91.73, above the 50-day MA of 87.73, and above the 200-day MA of 83.96, indicating a bullish trend. The MACD of 3.85 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDZNY.
Sandoz Group Ltd Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.25B | 64.50 | 17.27% | ― | 58.19% | 192.34% | |
69 Neutral | $8.77B | 156.00 | 8.37% | ― | 16.02% | -59.24% | |
61 Neutral | $44.00B | 67.02 | 7.04% | 1.02% | 9.56% | 180.05% | |
61 Neutral | $4.03B | 28.72 | 149.64% | ― | 2233.65% | ― | |
52 Neutral | $37.51M | -2.05 | -21.10% | ― | 489.78% | 45.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $12.96M | -1.45 | -127.78% | ― | 17.83% | 73.13% |
* Healthcare Sector Average
SDZNY
Sandoz Group Ltd Sponsored ADR
100.09
33.93
51.29%
CORT
Corcept Therapeutics
81.12
7.65
10.41%
SCYX
SCYNEXIS
3.77
-1.51
-28.60%
KNSA
Kiniksa Pharmaceuticals
92.24
55.23
149.23%
LQDA
Liquidia Technologies
45.06
20.70
84.98%
BFRI
Biofrontera
0.87
-0.23
-20.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.