Stock Analysis & Valuation Haemato AG (HAEK.DE)

• Previous Close: €21.40
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	2.62	-88
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

HAEMATO AG is a Germany-based pharmaceutical company specializing in the distribution and manufacturing of specialty and generic drugs, as well as medical devices. Founded in 1993 and headquartered in Schönefeld, the company operates in key therapeutic areas such as oncology, HIV, rheumatism, neurology, and cardiovascular diseases. Additionally, HAEMATO AG provides products for aesthetic medicine and cosmetic dermatology, catering to wholesalers, pharmacies, doctors, clinics, and medical laboratories. The company's business model combines the import and distribution of European pharmaceuticals with in-house generic drug manufacturing, positioning it as a versatile player in the healthcare sector. With a market capitalization of approximately €111.5 million, HAEMATO AG serves a niche but growing market, leveraging its expertise in specialty pharmaceuticals and medical technology. The company's diversified portfolio and strong distribution network make it a relevant player in Germany's competitive pharmaceutical landscape.

Investment Summary

HAEMATO AG presents a mixed investment profile. On the positive side, the company reported solid revenue of €248.1 million in FY 2022, with net income of €8.2 million and a diluted EPS of €1.57. Its operating cash flow of €20 million and healthy cash position (€23.8 million) suggest financial stability. The dividend yield, with a payout of €1.2 per share, may appeal to income-focused investors. However, the company operates in a highly competitive and regulated sector, with a beta of 1.294 indicating higher volatility than the market. While its niche focus on specialty drugs and aesthetic medicine provides differentiation, reliance on European imports and generic manufacturing exposes it to pricing pressures and regulatory risks. Investors should weigh its steady cash generation against sector-specific challenges.

Competitive Analysis

HAEMATO AG competes in the specialty and generic pharmaceutical sector, where differentiation is key. Its competitive advantage lies in its dual focus on distribution and manufacturing, allowing it to capture margins across the value chain. The company’s expertise in niche therapeutic areas (oncology, HIV) and aesthetic medicine provides some insulation from broader generic drug price erosion. However, its relatively small scale (€248M revenue) limits bargaining power compared to larger European generic players. The company’s distribution network in Germany is a strength, but it faces stiff competition from both multinational pharmaceutical distributors and domestic generic manufacturers. HAEMATO’s ability to source European-sourced drugs gives it regulatory advantages in the German market, but this also ties its fortunes to EU pharmaceutical policies. The medical aesthetics segment offers growth potential but is crowded with specialized competitors. Overall, HAEMATO’s positioning as a mid-sized, diversified pharmaceutical player allows it to serve specific niches effectively, but it lacks the scale to compete on cost with industry leaders.

Major Competitors

• STADA Arzneimittel AG (STADA.DE): STADA is a much larger German generics and specialty pharma company (€3.3B revenue in 2022) with strong European presence. Its scale gives it cost advantages in generics manufacturing that HAEK cannot match. However, STADA is less focused on the aesthetic medicine segment where HAEK has some differentiation. STADA’s broad OTC portfolio also creates diversification HAEK lacks.
• Evotec SE (EVT.DE): Evotec is a biopharma company with stronger R&D capabilities than HAEK, focused on drug discovery partnerships. While not a direct competitor in distribution, Evotec’s innovative model contrasts with HAEK’s generic-focused approach. Evotec’s higher growth potential comes with greater risk, making HAEK’s business model more stable but less dynamic.
• Merck KGaA (MRK.DE): Merck’s healthcare division competes in some of HAEK’s therapeutic areas (oncology, neurology) but at a much larger scale and with proprietary drugs rather than generics. Merck’s significant R&D budget and global reach make it a different class of competitor, though HAEK’s focus on cost-effective generics serves a different market segment.
• Fresenius SE & Co. KGaA (FRE.DE): Fresenius’s Kabi division is a major player in generic injectables and clinical nutrition, overlapping somewhat with HAEK’s hospital products. Fresenius’s enormous scale and vertical integration in healthcare services create competitive pressure, though HAEK’s more focused distribution model allows agility in specific niches.