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Stevanato Group (STVN)
NYSE:STVN
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Stevanato Group
(NYSE:STVN)
Rating:74Outperform
Price Target:
$27.00
▲( 12.55% Upside)
Positive Factors
Demand and Capacity
The accelerated capacity expansion gives STVN a unique opportunity to capture share in the sterile cartridge market.
Market Environment
The normalization of ordering patterns and the return of customer inventory levels to pre-COVID levels suggest a stable market environment, which is favorable for Stevanato.
Revenue Growth
BDS revenue grew by 11% year over year to €221M, coming in ahead of expectations.
Negative Factors
Engineering Revenue Decline
Engineering revenue declined by 4% year over year due to lower sales from visual inspection and glass conversion lines.
Free Cash Flow Outlook
In FY25, free cash flow is expected to be negative, but capex is expected to normalize in FY26 and turn free cash flow positive.
Profitability Guidance Adjustment
Management reiterated its revenue outlook for the year, while slightly adjusting down its profitability guidance due to the gross impact of tariffs.
Stevanato Group (STVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.64B
Dividend Yield0.23%
Average Volume (3M)328.72K
Price to Earnings (P/E)49.3
Beta (1Y)0.56
Revenue Growth2.84%
EPS Growth-11.34%
CountryUS
Employees5,521
SectorHealthcare
Sector Strength44
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.11
Shares Outstanding49,604,650
10 Day Avg. Volume349,618
30 Day Avg. Volume328,720
Financial Highlights & Ratios
PEG Ratio-1.21
Price to Book (P/B)4.02
Price to Sales (P/S)0.00
P/FCF Ratio-42.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.70Price Target Upside7.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Stevanato Group Business Overview & Revenue Model
Company DescriptionStevanato Group S.p.A. engages in the design, production, and distribution of products and processes to provide integrated solutions for pharma and healthcare. Its principal products include containment solutions, drug delivery systems, medical devices, diagnostic, analytical services, visual inspection machines, assembling and packaging machines, and glass forming machines. The company was founded in 1949 and is headquartered in Piombino Dese, Italy. Stevanato Group S.p.A. operates as a subsidiary of Stevanato Holding S.R.L.
How the Company Makes MoneyStevanato Group generates revenue through the manufacturing and sale of high-quality glass primary packaging and integrated systems for the pharmaceutical and healthcare sectors. The company’s key revenue streams include the sale of glass vials and syringes, as well as the provision of custom solutions and diagnostic equipment. Stevanato Group benefits from long-term partnerships with major pharmaceutical companies, leveraging these relationships to secure consistent demand for their products. Additionally, the company invests in technological innovation and R&D to enhance its product offerings, ensuring a competitive edge in the market. Stevanato's geographic diversity and strong operational infrastructure further contribute to its ability to capture value across various markets worldwide.
Stevanato Group Financial Statement Overview
Summary
Stevanato Group exhibits strong financial performance with consistent revenue growth and stable profitability. The balance sheet is robust with increased equity, though rising liabilities require attention. Cash flow management needs improvement as free cash flow has been negative due to high capital expenditures.Income Statement
Stevanato Group has shown consistent revenue growth with a notable increase from $536.5M in 2019 to $1.1B in 2024. The gross profit margin has been stable, reflecting efficient cost management, though it decreased slightly from 2023 to 2024. Despite a lower net income in 2024 compared to 2023, the company maintains a solid EBIT and EBITDA margin, supporting its profitability.78
Positive
Balance Sheet
The company's balance sheet reflects a healthy equity position with a significant increase in stockholders' equity from $265.5M in 2019 to $1.4B in 2024. The debt-to-equity ratio remains manageable, indicating prudent leverage. However, the increase in total liabilities highlights the need for monitoring future debt levels.72
Positive
Cash Flow
Stevanato Group's operating cash flow has increased, showcasing strong operational efficiency. However, free cash flow has been negative in recent years due to substantial capital expenditures, impacting cash flow health. The cash flow to net income ratios suggest the need for improved cash management strategies.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.10B | 1.09B | 983.70M | 843.90M | 662.04M | Gross Profit |
| 302.32M | 339.89M | 319.80M | 265.40M | 194.18M | EBIT |
| 161.14M | 200.72M | 152.58M | 128.12M | 103.11M | EBITDA |
| 247.80M | 272.35M | 256.40M | 226.93M | 156.38M | Net Income Common Stockholders |
| 117.78M | 145.63M | 142.85M | 134.32M | 78.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 98.27M | 72.18M | 256.65M | 438.21M | 157.12M | Total Assets |
| 2.33B | 2.07B | 1.66B | 1.42B | 967.98M | Total Debt |
| 428.97M | 396.59M | 218.37M | 244.29M | 363.01M | Net Debt |
| 330.70M | 326.99M | -10.37M | -166.75M | 247.41M | Total Liabilities |
| 924.43M | 938.93M | 663.79M | 577.18M | 657.84M | Stockholders Equity |
| 1.40B | 1.13B | 995.90M | 841.70M | 310.50M |
| Cash Flow | Free Cash Flow | |||
| -157.79M | -336.72M | -139.83M | 20.12M | 59.65M | Operating Cash Flow |
| 155.78M | 105.21M | 103.30M | 133.30M | 155.66M | Investing Cash Flow |
| -310.21M | -421.22M | -243.00M | -96.40M | -96.09M | Financing Cash Flow |
| 183.22M | 158.03M | -44.50M | 254.80M | -26.52M |
Stevanato Group Technical Analysis
Positive
23.99
Price Trends
21.65
Positive
21.52
Positive
20.76
Positive
Market Momentum
0.81
Negative
59.09
Neutral
67.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STVN, the sentiment is Positive. The current price of 23.99 is above the 20-day moving average (MA) of 22.65, above the 50-day MA of 21.65, and above the 200-day MA of 20.76, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STVN.
Stevanato Group Risk Analysis
Stevanato Group disclosed 63 risk factors in its most recent earnings report. Stevanato Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stevanato Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.84B | 47.32 | 9.16% | ― | 8.24% | 18.54% | |
74 Outperform | $6.64B | 49.30 | 9.08% | 0.23% | 2.84% | -11.34% | |
68 Neutral | $3.32B | ― | -4.62% | ― | 7.19% | -56.19% | |
58 Neutral | $5.61B | 39.98 | 3.48% | 1.07% | 0.29% | -48.98% | |
57 Neutral | $4.15B | ― | -5.56% | ― | 11.94% | -6.98% | |
56 Neutral | $7.17B | ― | -1.16% | ― | 4.88% | -196.93% | |
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% |
* Healthcare Sector Average
Performance Comparison
STVN
Stevanato Group
23.99
3.90
19.41%
ICUI
ICU Medical
130.75
26.46
25.37%
MMSI
Merit Medical Systems
96.49
15.59
19.27%
RGEN
Repligen
120.21
-38.57
-24.29%
TFX
Teleflex
121.97
-82.84
-40.45%
BLCO
Bausch + Lomb Corporation
11.19
-3.52
-23.93%
Stevanato Group Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 10.05%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive start to fiscal 2025 with robust revenue growth and operational improvements in the BDS segment. However, challenges remain in the Engineering segment and due to tariff impacts. The positive aspects slightly outweigh the negatives, indicating a cautiously optimistic outlook for the year.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
The company reported a 9% increase in revenue in the first quarter of 2025, driven by a strong performance in the Biopharmaceutical and Diagnostics Solutions Segment.
High-Value Solutions Growth
Revenue from high-value solutions grew 25% in the first quarter to EUR 110.3 million, accounting for 43% of total revenue.
Operational Improvements in BDS Segment
The BDS segment saw an 11% growth in revenue, supported by improvements at Latina and Fishers facilities.
Margin Expansion
Consolidated gross profit margin increased by 80 basis points to 27.2%, while operating profit margin increased by 280 basis points to 13.5%.
Order Intake Growth
Double-digit growth in order intake for both bulk and sterile vials compared to the previous year.
Negative Updates
Engineering Segment Revenue Decline
Revenue from the Engineering segment decreased by 4% due to lower sales from pharmaceutical visual inspection and glass conversion lines.
Margins Impacted by Legacy Projects
Engineering segment's gross profit margins were below expectations, decreasing to 10.7% due to unfavorable project mix related to legacy projects in Denmark.
Tariff Impact
Estimated EUR 4.5 million impact on operating profit due to tariffs, affecting earnings per share by approximately EUR 0.01.
Company Guidance
In the Stevanato Group's first quarter 2025 results call, the company reported a 9% revenue growth, reaching EUR 256.6 million, driven by an 11% increase in the Biopharmaceutical and Diagnostics Solutions (BDS) segment, which offset a 4% decline in the Engineering segment. High-value solutions, including a partial recovery in EZ-fill vials, accounted for 43% of total revenue, growing 25% year-over-year to EUR 110.3 million. The company's gross profit margin increased by 80 basis points to 27.2%, while the operating profit margin rose by 280 basis points to 13.5%. Adjusted EBITDA was EUR 57.4 million, with a margin improvement of 100 basis points to 22.4%. The company also updated its full-year guidance, expecting revenue between EUR 1.160 billion and EUR 1.190 billion and adjusted EBITDA between EUR 288.5 million and EUR 301.8 million, factoring in an anticipated EUR 4.5 million impact from tariffs.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.