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Stevanato Group (STVN)
NYSE:STVN
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Stevanato Group
(NYSE:STVN)
69Neutral
Positive Factors
Capacity Expansion
The accelerated capacity expansion gives STVN a unique opportunity to capture share in the sterile cartridge market.
Market Position
STVN has market leading positions in the attractive biopharmaceutical injectables end market, with a strong/broad product portfolio.
Revenue Growth
STVN's efforts to expand High-Value Solutions capacity should spur revenue growth and improve margins over time.
Negative Factors
Cash Flow
In FY25, free cash flow is expected to be negative, but capex is expected to normalize in FY26 and turn free cash flow positive.
Margin Pressure
Capacity expansion costs at Fishers will continue to weigh on margins.
Vial Destocking
Vial destocking headwinds, cost under-absorption related to necessary capacity buildouts, and engineering optimization expenses likely gate estimated upside near-term.
Stevanato Group (STVN) vs. S&P 500 (SPY)
Market Cap
$5.70B
Dividend Yield0.27%
Average Volume (3M)345.11K
Price to Earnings (P/E)44.4
Beta (1Y)0.56
Revenue Growth1.72%
EPS Growth-21.26%
CountryUS
Employees5,521
SectorHealthcare
Sector Strength62
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.47
Shares Outstanding49,604,650
10 Day Avg. Volume303,846
30 Day Avg. Volume345,107
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.13Price Target Upside20.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Stevanato Group Business Overview & Revenue Model
Company DescriptionStevanato Group (STVN) is a global leader in providing comprehensive solutions for the pharmaceutical and healthcare industries. The company specializes in the production of glass primary packaging, integrated systems, and specialty components, focusing on high-quality and innovative solutions. With a strong emphasis on research and development, Stevanato Group offers a wide range of products and services, including glass vials, syringes, and diagnostic equipment, catering to the needs of pharmaceutical companies and beyond.
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
Negative
20.88
Price Trends
20.91
Negative
21.13
Negative
20.32
Positive
Market Momentum
0.01
Positive
46.74
Neutral
13.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STVN, the sentiment is Negative. The current price of 20.88 is below the 20-day moving average (MA) of 20.97, below the 50-day MA of 20.91, and above the 200-day MA of 20.32, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 13.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $65.77B | 38.05 | 6.92% | 1.76% | 5.89% | 42.05% | |
70 Outperform | $187.73B | 30.08 | 13.15% | 0.33% | 0.05% | 6.87% | |
69 Neutral | $5.70B | 44.43 | 9.40% | 0.27% | 1.72% | -21.26% | |
65 Neutral | $146.67B | 38.76 | 7.57% | 0.56% | -13.50% | -17.25% | |
64 Neutral | $79.20B | 19.44 | 97.86% | 1.92% | -18.72% | ― | |
54 Neutral | $17.56B | 136.07 | -9.24% | 2.69% | -14.00% | -184.82% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
STVN
Stevanato Group
20.97
-9.03
-30.10%
MMM
3M
147.76
56.65
62.18%
BAX
Baxter International
33.65
-8.51
-20.19%
BDX
Becton Dickinson
226.42
-12.98
-5.42%
DHR
Danaher
205.16
-38.02
-15.63%
TMO
Thermo Fisher
489.06
-85.27
-14.85%
Stevanato Group Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 9.55% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted growth in high-value solutions and the Biopharmaceutical and Diagnostic Solutions segment, along with significant improvements in free cash flow and progress in expansion projects. However, challenges remain in the Engineering segment and vial revenue, with a notable decline in gross profit margins. The company's efforts to address these challenges and invest in growth areas indicate a balanced outlook.Highlights
Growth in Biopharmaceutical and Diagnostic Solutions
The Biopharmaceutical and Diagnostic Solutions (BDS) segment grew by 6% in 2024, driven by robust demand for high-value syringes. Revenue from injectable biologics increased by 24% year-over-year and represented 34% of BDS revenue compared to 30% last year.
High-Value Solutions Revenue Increase
Revenue from high-value solutions grew by 9% to a record €131 million in Q4 2024, representing approximately 40% of total revenue. This was driven by growth in premium performance syringes and other product categories.
Progress in Expansion Projects
The company generated its first commercial revenue in Fishers, Indiana, and the Latina project in Italy turned profitable at a gross profit margin level in Q3 2024. These projects are expected to continue scaling and contribute to future growth.
Improved Free Cash Flow
Free cash flow improved significantly from a negative €333.9 million in 2023 to a negative €148.5 million in 2024, driven by increased cash flow from operations and lower capital expenditures.
Lowlights
Decline in Engineering Segment
The Engineering segment revenue declined by 70% in 2024, with a 16% decline in Q4. Performance was mixed with declines in glass conversion and visual inspection offsetting growth in assembly and packaging.
Vial Revenue Decline and Destocking
Revenue related to bulk and EZ-fill vials declined by 34% overall in 2024, with a larger drop in EZ-fill vials due to industry-wide vial destocking. While there were modest improvements, the market is expected to stabilize throughout 2025.
Gross Profit Margin Decline
Gross profit margin for Q4 2024 declined by 210 basis points to 29.7% due to unfavorable impacts from vial destocking, underutilization of vial lines, and challenges in the Engineering segment.
Company Guidance
In the Stevanato Group's fourth quarter and year-end 2024 conference call, the company provided guidance for 2025 with several key metrics. They anticipate 2025 revenue between €1.160 billion and €1.190 billion, driven by mid to high single-digit growth in the Biopharmaceutical and Diagnostic Solutions (BDS) segment, particularly in high-value syringes. Adjusted EBITDA is projected between €293 million and €306.3 million, with an adjusted diluted EPS range of €0.51 to €0.55. The company expects gross profit margins to improve by 100 to 140 basis points due to better performances in their Fishers and Latina facilities, as well as a higher mix of high-value solutions. Capital expenditures are forecasted at €310 million to €340 million before customer contributions, with net CapEx expected between €250 million and €280 million. Free cash flow is projected to improve, ranging from negative €40 million to negative €60 million. The company also foresees a gradual recovery in vial demand throughout 2025, with a more robust second half of the year.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.