SRT3 GR

Sartorius AG - PRF PERPETUAL EUR

Healthcare


Presented:03/29/2022
Price:€413.60
Cap:$31.52B
Current Price:€238.20
Cap:$18.32B

Presented

Date03/29/2022
Price€413.60
Market Cap$31.52B
Ent Value$47.80B
P/E Ratio88.65x
Book Value€18.42
Div Yield0.48%
Shares O/S68.42M
Ave Daily Vol105,726
Short IntN/A

Current

Price€238.20
Market Cap$18.32B
Sartorius AG provides solutions for the biopharmaceutical research and industry. It operates through the following segments: Groups; Bioprocess Solutions (BPS); and Lab Products and Service (LPS). The Group segment produces and markets instruments and consumables as well as related services in its segments BPS and LPS. The Bioprocess Solutions segment focuses on single-use solutions, helps customers manufacture biotech medications and vaccines safely and efficiently. The Lab Products and services segment serves the needs of laboratories performing research and quality control at pharma and biopharma companies and those of academic research institutes. The company was founded by Florence Sartorius, Sr. in 1870 and is headquartered in Goettingen, Germany.

Publicly traded companies mentioned herein: Adobe Inc (ADBE), Autodesk Inc (ADSK), Bio-Rad Laboratories Inc (BIO), Danaher Corp (DHR), Repligen Corp (RGEN), Sartorius AG (SRT3 GR), Thermo Fisher Scientific Inc (TMO)

Highlights

The presenter is long shares of Sartorius AG (SRT3 GR), a 150-year-old German biologics supplier. Biologics are large molecule, live protein medicines that specifically target certain diseases. The company’s market cap is roughly €27B and the stock trades ~€40M per day. It generates about $4B in revenue and ~$1.5B in EBITDA as roughly one-third of revenue drops through to EBITDA. The stock trades on EBITDA and is down 40% from the recent highs with the multiple coming in from the high 30s to the low 20s. Since 2010, the company has compounded revenue over 15%, EBITDA over 25%, and free cash flow over 25%. It has been one of the best performers of the last two decades in almost any sector. As such, the recent downturn creates an attractive entry point into one of the sector’s best companies that he expects will grow EBITDA in the mid-teens for the foreseeable future.

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Idea Discussion

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