# Sandoz Group AG (SDZ.SW)

Canonical: https://gigainvestors.com/s/SDZ.SW

Analysis as of: 2026-10-16T07:34:06.206Z. Financial observations: FY2019–FY2025.

Listing currency: CHF. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CHF 75.26 per share; close as of 2026-10-15.

Estimated value: low CHF 21.30 per share, central CHF 23.97 per share, high CHF 27.52 per share. Buy at or below the central value CHF 23.97 per share. Valuation as of 2026-10-16T07:34:06.206Z; scenarios are not confidence intervals.

Expected annual return: 5.1% at the stated quote. About 5.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CH 10-year bond 0.5% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 7 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.06×

- FY2020: 0.15×

- FY2021: 0.16×

- FY2022: 0.15×

- FY2023: 0.04×

- FY2024: 0.03×

- FY2025: 0.15×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 22.1%

- ROIC, second-lowest year: 5.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: 19.7%

- FY2021: >100%

- FY2022: 71.1%

- FY2023: 5.4%

- FY2024: 5.6%

- FY2025: 24.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.6B

- Net income, five-year total: $2.7B

- Working capital / revenue, annual change: -1.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.01×

- FY2023: 1.00×

- FY2024: -93.00×

- FY2025: 0.98×

### management: unclear

- buybacks unrelated to price (informational)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.3%

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 5.6%

Chart: Earnings per share; fiscal year observations.

- FY2020: $1.01

- FY2021: $1.93

- FY2022: $1.88

- FY2023: $0.21

- FY2024: $0.00

- FY2025: $2.19

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.74×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.05×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -3.8%

- FY2021: -2.6%

- FY2022: -2.2%

- FY2023: -1.5%

- FY2024: -3.3%

- FY2025: -3.2%

## Holders

## Price story

Price needs cash profits to grow 16.1% a year for ten years · "Sandoz Shares Jump on Improved Guidance" (finance.yahoo.com, Feb 2026) · sales +11.8%

Story as of 2026-10-16T09:59:59.129Z; price observation 2026-10-15.

Price needs cash profits to grow 16.1% a year for ten years

- 2025-08-07: Sandoz delivers strong H1 2025 results, with accelerated sales growth in the second quarter ([finance.yahoo.com](https://finance.yahoo.com/news/sandoz-delivers-strong-h1-2025-050000964.html))

- 2026-02-25: Sandoz Shares Jump on Improved Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/e21597ec-0616-38dd-aad1-fb7db81be005/sandoz-shares-jump-on.html))

- 2026-07-22: Trump Proposes 200% Generic Drug Tariffs, Sandoz Shares Drop 4.2% ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/trump-proposes-200-generic-drug-195645525.html))

- 2026-08-05: Sandoz Group (SWX:SDZ) Settles US Drug Pricing Cases And Wins Brazil Semaglutide Approval ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/sandoz-group-swx-sdz-settles-024936338.html))

### Sales · FY2024–2025

sales +11.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: $9.7B 

- FY2020: $9.0B 

- FY2021: $8.8B 

- FY2022: $8.9B 

- FY2023: $12B 

- FY2024: $10B 

- FY2025: $12B 

### Gross margin · FY2025

gross margin 47%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2020: 46.0% 

- FY2021: 47.2% 

- FY2022: 46.9% 

- FY2023: 45.7% 

- FY2024: 47.4% 

- FY2025: 47.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 11.6 billion.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2025-12-31 (filed 2026-10-16T07:34:06.206Z); FY2025: revenue 11613420258; grossProfit 5461010264; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 45.7% to 47.4% during 2023–25; it earns 22.1% on its capital.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2023-12-31 (filed 2026-10-16T07:34:06.206Z); FY2023: grossProfit / revenue = 45.7%.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2024-12-31 (filed 2026-10-16T07:34:06.206Z); FY2024: grossProfit / revenue = 47.4%.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2025-12-31 (filed 2026-10-16T07:34:06.206Z); FY2025: grossProfit / revenue = 47%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.206Z); 7-year return on capital observations [[2020,0.19725378833638024],[2021,1.414310888563897],[2022,0.7114909578865142],[2023,0.05416666658426928],[2024,0.05567722681359045],[2025,0.244980443899198]]; median 0.22111711611778911. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 47% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.206Z); Gross margin observations: [[2021,0.4719825345984713],[2022,0.4687365243303156],[2023,0.4573604569018808]]; range within 2 percentage points.

### Where the cash goes

Reinvests 27.8% of cash earnings; paid dividends in 2 of 6 years.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2020-12-31 (filed 2026-10-16T07:34:06.206Z); FY2020: growth capex 0; upkeep 309742586; owner earnings 774356467. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2021-12-31 (filed 2026-10-16T07:34:06.206Z); FY2021: growth capex 0; upkeep 382163359; owner earnings 854876340. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2022-12-31 (filed 2026-10-16T07:34:06.206Z); FY2022: growth capex 0; upkeep 407812804; cash acquisitions 39000000; owner earnings 815702237. Growth capex plus acquisitions / owner earnings = 0.04781156435641846.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2023-12-31 (filed 2026-10-16T07:34:06.206Z); FY2023: growth capex 116868143; upkeep 613557749; cash acquisitions 18000000; owner earnings 89988469. Growth capex plus acquisitions / owner earnings = 1.498726942448593.

- Source: https://eodhd.com/api/fundamentals/0SAN.LSE.json#2025-12-31 (filed 2026-10-16T07:34:06.206Z); FY2025: growth capex 0; upkeep 516454645; cash acquisitions 260000000; owner earnings 934957779. Growth capex plus acquisitions / owner earnings = 0.27808742366750233.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.206Z); Dividend observations: [[2020,0],[2021,0],[2022,0],[2023,0],[2024,215000000],[2025,329986232]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 4.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SDZ.SW SharesStats.PercentInsiders = 4.185 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.206Z); Ten-year compound average after fade. Initial solved rate 0.22074274818164807. Price 75.26; FX 0.8276775368316505; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CHF per share)

- 2023-10: CHF 23.65 per share

- 2023-11: CHF 25.01 per share

- 2023-12: CHF 27.06 per share

- 2024-01: CHF 29.80 per share

- 2024-02: CHF 27.46 per share

- 2024-03: CHF 27.21 per share

- 2024-04: CHF 31.15 per share

- 2024-05: CHF 32.06 per share

- 2024-06: CHF 32.54 per share

- 2024-07: CHF 38.17 per share

- 2024-08: CHF 37.30 per share

- 2024-09: CHF 35.27 per share

- 2024-10: CHF 39.35 per share

- 2024-11: CHF 40.14 per share

- 2024-12: CHF 37.17 per share

- 2025-01: CHF 43.64 per share

- 2025-02: CHF 39.55 per share

- 2025-03: CHF 37.04 per share

- 2025-04: CHF 35.78 per share

- 2025-05: CHF 41.73 per share

- 2025-06: CHF 43.42 per share

- 2025-07: CHF 46.73 per share

- 2025-08: CHF 50.16 per share

- 2025-09: CHF 47.17 per share

- 2025-10: CHF 53.50 per share

- 2025-11: CHF 56.72 per share

- 2025-12: CHF 57.84 per share

- 2026-01: CHF 61.18 per share

- 2026-02: CHF 68.02 per share

- 2026-03: CHF 61.74 per share

- 2026-04: CHF 62.54 per share

- 2026-05: CHF 65.60 per share

- 2026-06: CHF 73.12 per share

- 2026-07: CHF 65.76 per share

- 2026-08: CHF 67.92 per share

- 2026-09: CHF 70.86 per share

- 2026-10: CHF 71.64 per share

## Annual estimated value (CHF per share)

- FY2024: low CHF 20.43 per share, central CHF 22.98 per share, high CHF 26.39 per share

- FY2025: low CHF 22.22 per share, central CHF 24.89 per share, high CHF 28.44 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.