Sartorius Stedim Biotech SA
🇫🇷 DIM.PA · Paris · FR0013154002
Healthcare
EUR 169.10 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
62.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 169.10 ÷ 2.73 = 62.0
TTM period through: 2025-12-31
Forward P/E (estimated): 32.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 62.2
Yield (Fwd)
0.41%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.41%
Net Debt/EBITDA (TTM)
2.7x
Latest quarter: 11.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 11.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
25.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 25.3%
Cash Flow Payout (TTM): 12.5%
FCF Coverage (TTM): 2.17x
ROE
6.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
22.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Sartorius Stedim Biotech is a high-quality global provider of biopharmaceutical equipment operating in an attractive oligopoly, though currently navigating a temporary post-pandemic sector destocking phase. While the core business model remains intact, the stock's profile fundamentally clashes with conservative dividend income investing. With a negligible 0.41% dividend yield and an extremely elevated trailing P/E of 61.95, this is not recommended for new positions, as better opportunities for sustainable income exist in more traditionally valued, high-yield essential services.
Sector Context
Sartorius Stedim Biotech supplies essential instruments and consumables required for biopharmaceutical manufacturing. While healthcare infrastructure is highly critical, the bioprocessing equipment sub-sector trades more like cyclical growth technology rather than stable infrastructure. This results in structurally high valuation multiples and minimal dividend yields, making it a difficult fit for conservative income-focused portfolios compared to traditional regulated utilities or consumer staples.
Temporary Opportunity Identified
Post-pandemic destocking and constrained customer capital expenditures in the biopharmaceutical sector have temporarily depressed order intakes and compressed earnings.
📊 Strategy Analysis
- • Maintains a formidable competitive moat operating within a global bioprocessing oligopoly, effectively acting as an essential 'picks and shovels' provider to the biopharmaceutical industry.
- • Despite recent strategic dividend resets, the current distribution is extremely well-covered by cash generation, exhibiting a highly conservative Free Cash Flow dividend coverage ratio of 2.17x and a payout ratio of just 25.27%.
- • Net Debt to EBITDA remains at an acceptable 2.68x level, indicating manageable leverage despite the current industry downturn.
⚠ What to Watch
- • Severe strategy mismatch: the negligible 0.41% dividend yield completely misses the strategy's >3% minimum requirement, offering practically zero current income generation.
- • Valuation multiples are severely elevated for a value strategy, with a trailing P/E of 61.95 and forward P/E of 32.79 far exceeding the target 8-15x range.
- • Fundamental momentum has deteriorated recently due to cyclical headwinds, evidenced by a low ROE of 6.53% and a negative 5-year EPS CAGR of -9.5%.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.