Stevanato Group S.p.A. (NYSE: STVN)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001849853
Market Cap 4.27 Bn
P/B 2.53
P/E 25.83
P/S 3.10
ROIC (Qtr) 6.58
Div Yield % 0.00
Rev 1y % (Qtr) 15.52
Total Debt (Qtr) 533.35 Mn
Debt/Equity (Qtr) 0.32

About

Stevanato Group S.p.A., commonly referred to as STVN, is a prominent player in the pharmaceutical, biotechnology, and life sciences sectors. Established in 1980, the company has its headquarters in Piombino Dese, Italy, and operates with a global perspective, serving over 700 companies worldwide. Stevanato Group's business activities revolve around providing integrated solutions for the healthcare industry. The company's offerings are divided into two segments: Biopharmaceutical and Diagnostic Solutions, and Engineering. The Biopharmaceutical and...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 277.18M provides robust 0.52x coverage of total debt 533.35M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 277.18M provides exceptional 117802.50x coverage of minority interest expenses 2352.94, showing strong core operations.
  • Strong tangible asset base of 2.74B provides 5.14x coverage of total debt 533.35M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 277.18M provides 1.89x coverage of SG&A expenses 146.67M, showing efficient operational cost management.
  • Cash position of 133.33M provides exceptional 56666.50x coverage of minority interest expenses 2352.94, indicating strong liquidity.

Bear case

  • Operating cash flow of 277.18M barely covers its investment activities of (317.18M), with a coverage ratio of -0.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (317.18M) provide weak support for R&D spending of 29.63M, which is -10.70x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (30.64M) provides weak coverage of capital expenditures of 307.82M, with a -0.10 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 258.72M show weak coverage of depreciation charges of 98.44M, with a 2.63 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 277.18M barely covers operating expenses of (12.12M) with a -22.87 ratio, suggesting thin operational efficiency margins and limited flexibility.

Geographical areas [axis] Breakdown of Revenue (2024)

Major customers [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.15 2.75
EV to Cash from Ops. EV/CFO 22.00 39.87
EV to Debt EV to Debt 11.43 27.09
EV to EBIT EV/EBIT 23.57 32.86
EV to EBITDA EV/EBITDA 18.56 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF -199.00 0.88
EV to Market Cap EV to Market Cap 1.43 -4.26
EV to Revenue EV/Rev 4.43 252.61
Price to Book Value [P/B] P/B 2.53 6.13
Price to Earnings [P/E] P/E 25.83 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 6.89 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.16 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 53.85 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 37.08 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 23.54 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 36.13 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) 28.90 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 25.58 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) 83.76 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.96 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.57 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.24 2.51
Current Ratio Curr Ratio (Qtr) 1.89 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.32 0.55
Interest Cover Ratio Int Coverage (Qtr) 6.89 -117.83
Times Interest Earned Times Interest Earned (Qtr) 6.89 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.90 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) 15.97 -2,472.59
EBT Margin % EBT Margin % (Qtr) 16.06 -2,442.52
Gross Margin % Gross Margin % (Qtr) 28.60 30.06
Net Profit Margin % Net Margin % (Qtr) 12.00 -2,438.49