Sandoz Group AG

SDZNY

Medical - Pharmaceuticals · Healthcare

Price

$81.15

+2.25 (+2.85%)

Market Cap

$35.11B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+1.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 431.0M (2021) → 436.8M (2025)

Sandoz Group AG is a Swiss pharmaceutical company that makes generic drugs and biosimilars. Generic drugs are cheaper copies of brand-name medicines whose patents have expired, while biosimilars are lower-cost versions of complex biological medicines. Sandoz sells these products to hospitals, pharmacies, and healthcare systems around the world, making it one of the largest generic and biosimilar companies globally.

Sandoz earns money by selling a large volume of medicines at competitive prices, relying on scale and manufacturing efficiency rather than high margins per pill. The company operates across Europe, North America, and other international markets, and was spun off from Novartis in 2023 as a standalone business. Its biosimilars portfolio is a key growth driver, as more expensive biological drugs come off patent and healthcare systems look for affordable alternatives — though pricing pressure in the generics market remains a constant risk to profitability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+457.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$1.1B/ year

↑ Rising (+13% vs prior year)

9.5% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

4.2%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.8B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Sandoz Group AG is a rare growth stock that's already generating positive cash flow while growing at 10%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

48.4%

Healthy — 48.4% gross margin

Operating Margin

17.4%

Healthy — 17.4% operating margin

ROCE

6.9%

Weak — 6.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+12.1%

Fast-growing sales (12.1% YoY)

EPS YoY

+1015.8%

Earnings growing fast (1015.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

221%

Turns 221% of profit into real cash

FCF Margin

5.5%

Thin free cash flow (5.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.56

Conservative — low debt load (0.56)

Interest Cover

4.08x

Adequate interest coverage (4.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

38.3x

Pricey — P/E 38.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+17.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (38.3 → 20.5)

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Dividends

Dividend Yield

1.18%

Small dividend — 1.18% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

N/A

no trend

Data not available

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