| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 70.51 | -26 |
| Intrinsic value (DCF) | 36.00 | -62 |
| Graham-Dodd Method | 35.96 | -62 |
| Graham Formula | 36.59 | -61 |
Siegfried Holding AG is a leading global player in the life sciences sector, specializing in the development and production of active pharmaceutical ingredients (APIs), intermediates, and finished dosage forms. Headquartered in Zofingen, Switzerland, the company has a rich history dating back to 1873. Siegfried offers comprehensive contract development and manufacturing services (CDMO), covering pharmaceutical and analytical development, commercial manufacturing, and clinical trial material production. Its expertise spans solid oral dosage forms, sterile injectables, ophthalmics, and inhalative products, with a strong focus on APIs for anesthetics, pain treatment, and central nervous and respiratory diseases. Operating in the highly regulated pharmaceutical industry, Siegfried differentiates itself through its integrated service offerings, regulatory expertise, and high-quality manufacturing standards. The company serves a global clientele, positioning itself as a critical partner for pharmaceutical companies seeking reliable, end-to-end solutions in drug development and production.
Siegfried Holding AG presents a compelling investment case due to its strong position in the growing CDMO market, particularly in high-value APIs and sterile manufacturing. The company's diversified service portfolio and regulatory expertise provide resilience against industry volatility. With a market cap of CHF 4.31 billion and a beta of 0.699, it offers relatively stable exposure to the healthcare sector. However, investors should note the capital-intensive nature of the business, evidenced by significant capital expenditures (CHF -165.3 million in the latest period). The company's solid revenue (CHF 1.29 billion) and net income (CHF 160.1 million) reflect operational efficiency, but reliance on pharmaceutical outsourcing trends and regulatory risks remain key considerations. The dividend yield (CHF 4.18 per share) adds income appeal, but growth prospects depend on sustained demand for outsourced drug development and manufacturing.
Siegfried Holding AG competes in the specialized and generic drug manufacturing sector, with a unique focus on integrated CDMO services. Its competitive advantage lies in its end-to-end capabilities, spanning API development to finished dosage forms, particularly in sterile injectables and controlled substances. The company's Swiss heritage and adherence to stringent regulatory standards (FDA, EMA) enhance its reputation for quality, making it a preferred partner for complex molecules. Unlike pure-play API manufacturers, Siegfried's ability to offer both APIs and finished dosage forms provides cross-selling opportunities and client stickiness. However, it faces intense competition from larger CDMOs with greater scale and geographic reach. Siegfried's niche focus on anesthetics and CNS drugs differentiates it but also creates concentration risks. The company's zero debt position (as per latest data) provides financial flexibility, but its smaller size compared to global giants may limit its ability to compete on price for high-volume commoditized products. Its strategic acquisitions (e.g., US-based Hameln Pharma) demonstrate efforts to expand capabilities and geographic footprint, but integration risks remain.