Straumann Holding AG (STMN.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

Straumann Holding AG provides tooth replacement and orthodontic solutions worldwide.It researches, develops, manufactures, and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials, and digital solutions for use in tooth correction, replacement, and restoration, as well as to prevent tooth loss.The company offers dental implant systems for tissue and bone level; titanium, titanium alloy, ceramic, and mini dental implant systems; and guided and non-guided surgical instruments, as well as implant-borne prosthetics.

It provides ceramic healing and screw retained abutments; intraoral scanning solutions; 3D printers; milling machines; and prevention products.In addition, it offers biomaterials, bone substitutes, membranes, biologics, and soft tissue management and oral healing products; digital solutions for dental labs, dentists, and centralized milling centers, as well as materials, third party systems, and guided surgery; surgical instruments comprising surgical and modular cassettes, guided instruments, implant maintenance products, bone block fixation sets, bonerings, titanium pin sets, and other cassettes; and edentulous, pro arch fixed, prosthetic, and mini implant solutions for edentulous patients.Further, it provides esthetic restorations that include ceramic implant monotypes, ceramic implants, abutments, biologics, and other solutions; and Emdogain for wound healing.

Further, it offers systems Clear Correct aligners; and training and education services to its customers.The company provides its products to general dentists, specialists, and dental technicians and laboratories, as well as corporate customers, such as distributors, hospitals, universities, and dental service organizations in approximately 100 countries through a network of distribution subsidiaries and partners.Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland.

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1.b. Last Insights on STMN

Straumann Holding AG's recent performance was positively driven by attention from substantial price movement on the SWX. The company's estimated fair value is CHF171, based on 2 Stage Free Cash Flow to Equity. High insider ownership, up to 32%, signals strong internal confidence in the business's long-term prospects. Recent analyses highlight the stock's potential undervaluation, with estimates suggesting it could be 47% below intrinsic value.

1.c. Company Highlights

Last Price	94.54
Change Percentage	0.40%
Open	93.1
Previous Close	94.16
Market Cap ( Millions)	15074
Volume	47947
Year High	129.35
Year Low	83.1
M A 50	96.16
M A 200	97.61

FCF Yield	2.18%
Dividend Yield	1.00%
ROE	16.90%
Debt / Equity	30.12%
Net Debt / EBIDTA	14.00%
Price To Book	6.93
Price Earnings Ratio	42.02
Price To FCF	45.86
Price To sales	5.79
EV / EBITDA	12.18

2. Straumann's 2025 Earnings: Strong Revenue Growth and Margin Expansion

The Straumann Group reported strong full-year 2025 results, with revenue reaching CHF 2.6 billion, representing an organic growth of 8.9% and a reported growth of 4.1%. The company's core EBIT margin was 25.2%, or 26.5% excluding currency effects, driven by disciplined execution, targeted OpEx measures, and operating leverage. Net results reached CHF 478 million, corresponding to a net margin of 18.3%, and EPS came in at CHF 0.757, below analyst estimates of CHF 1.41. The company generated a free cash flow of CHF 290 million, representing 11.1% of net revenue.

Publication Date: Feb -19

                                    📋 Highlights
                                    Revenue Growth::
                                                CHF 2.6 billion revenue with 8.9% organic growth and 4.1% reported growth in 2025.
EBIT Margin::
                                                Core EBIT margin of 25.2% (26.5% ex-currency) driven by cost discipline and operational leverage.
Free Cash Flow::
                                                CHF 290 million generated, representing 11.1% of net revenue.
Regional Performance::
                                                Latin America grew 18% organically, EMEA over 11%, and Asia Pacific 7% for the year.
Dividend Increase::
                                                Proposed CHF 1/share dividend (5% increase) with a core payout ratio of ~33%.

                                

Regional Performance

In terms of regional performance, EMEA delivered organic growth of above 11%, North America achieved 6.8% organic growth in the fourth quarter, and Asia Pacific delivered solid underlying organic growth of around 7% for the full year. Latin America delivered high double-digit organic revenue growth of around 18% for the year. The company's growth strategy focuses on two dimensions: performing strongly in core market segments and transforming the business in key market segments to capture growth opportunities.

Guidance and Outlook

The company expects continued market share gains and high single-digit organic revenue growth in 2026, along with further profitability expansion of 30 to 60 basis points in the core EBIT margin at constant 2025 currency rates. Analysts estimate next year's revenue growth at 9.8%. The guidance assumes a stable macro environment, with progress expected in North America and a strong second half in China and Asia Pacific.

Valuation

With a P/E Ratio of 43.18 and an EV/EBITDA of 12.5, the market appears to be pricing in a significant growth premium. The company's ROE of 17.39% and ROIC of 32.79% indicate strong profitability. The Dividend Yield stands at 0.98%, reflecting a relatively conservative payout policy.

Operational Highlights

The company's growth strategy is driven by innovation, with the launch of iEXCEL, its next-generation implant system, which has already sold over 1 million units. The company is also transforming its orthodontics business through a strategic partnership with Smartee and DentalMonitoring. Digitalization is a critical enabler for Straumann, with its open cloud-based platform, Straumann AXS, connecting implantology workflow end-to-end.

Margin Expansion Drivers

The margin guidance assumes savings from Smartee, with a clear plan to turn the orthodontics business profitable over two years. The company expects a step-up in margin in the first half of 2026, with a bigger impact in the second half. Operational leverage, mix, digital, and Shanghai production are expected to drive margin expansion.

3. NewsRoom

Straumann Holding AG (SAUHF) (FY 2025) Earnings Call Highlights: Strong Revenue Growth Amid ...

Feb -18

Source:

BDX vs. SAUHY: Which Stock Is the Better Value Option?

Jan -27

Source:

Global Dental Market Forecast Report and Company Analysis 2025-2033 Featuring Zimmer, Straumann, Dentsply, 3M, and Heartland | Astute Analytica

Jan -27

Source: globenewswire.com

Is Straumann Holding AG's (VTX:STMN) Latest Stock Performance Being Led By Its Strong Fundamentals?

Jan -27

Source:

HSIC or SAUHY: Which Is the Better Value Stock Right Now?

Jan -06

Source:

Is Straumann Holding AG (VTX:STMN) Potentially Undervalued?

Dec -29

Source:

European Stocks Priced Below Estimated Intrinsic Value

Dec -19

Source:

Global Market Insights On 3 Stocks That Might Be Priced Below Intrinsic Value

Dec -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Operations

Expected Growth: 8.0%

Operations is expected to grow steadily due to increased demand for dental implants and restorative solutions. Straumann's expanding product portfolio and efficient supply chain will support this growth. The segment's growth will be driven by the company's ability to innovate and improve production efficiency.

Sales Europe, Middle East and Africa (EMEA)

Expected Growth: 9.0%

EMEA sales are expected to grow due to the region's large and established market, increasing adoption of premium products, and the company's strong distribution network. Straumann's innovative products and excellent customer service will drive growth in this segment.

Sales North America (NAM)

Expected Growth: 11.0%

NAM sales are expected to grow rapidly due to the region's high awareness of dental aesthetics and increasing demand for premium dental products. Straumann's strong brand presence, innovative product offerings, and growing market share will drive growth in this segment.

Sales Asia Pacific (APAC)

Expected Growth: 12.0%

APAC sales are expected to grow rapidly due to the region's large and growing market, increasing dental awareness, and rising demand for dental implants. Straumann's strong presence in China and other APAC countries, combined with its innovative products, will drive growth in this segment.

Sales Latin America (LATAM)

Expected Growth: 10.0%

LATAM sales are expected to grow steadily due to the region's growing dental market, increasing adoption of dental implants, and Straumann's expanding presence. The segment's growth will be driven by the company's strong distribution network and innovative product offerings.

Eliminations

Expected Growth: 0.0%

Eliminations are not expected to grow as they represent the elimination of inter-segment transactions. The segment's growth will be neutral, as it is a non-operating item.

7. Detailed Products

Dental Implants

Straumann's dental implants are designed to replace missing teeth and provide a natural-looking and feeling smile.

CARES Digital Dentistry

CARES is a digital dentistry system that offers a comprehensive solution for dental labs and clinics, including CAD/CAM, 3D printing, and milling.

Bone and Tissue Regeneration

Straumann's bone and tissue regeneration products are designed to promote bone growth and tissue regeneration in dental implant procedures.

Prosthetic Components

Straumann's prosthetic components, including abutments and crowns, are designed to work in harmony with their dental implants.

Digital Dentures

Straumann's digital dentures are designed to provide a precise and comfortable fit, using advanced digital technology.

8. Straumann Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Straumann Holding AG operates in the dental implant industry, where substitutes are limited. However, the company faces competition from other dental implant manufacturers, which could be considered substitutes.

Bargaining Power Of Customers

Dental clinics and hospitals, Straumann's customers, have limited bargaining power due to the company's strong brand reputation and high-quality products.

Bargaining Power Of Suppliers

Straumann Holding AG has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power.

Threat Of New Entrants

The dental implant industry has high barriers to entry, including regulatory hurdles and significant R&D investments. This limits the threat of new entrants.

Intensity Of Rivalry

The dental implant industry is highly competitive, with several established players competing for market share. Straumann Holding AG faces intense rivalry from companies like Nobel Biocare and Zimmer Biomet.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.48%
Debt Cost	5.58%
Equity Weight	87.52%
Equity Cost	9.90%
WACC	9.36%
Leverage	14.27%

11. Quality Control: Straumann Holding AG passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Roche

A-Score: 5.4/10

Value: 1.1

Growth: 3.0

Quality: 6.4

Yield: 5.6

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

EssilorLuxottica

A-Score: 5.1/10

Value: 1.0

Growth: 5.8

Quality: 6.2

Yield: 3.1

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

Sonova

A-Score: 4.6/10

Value: 2.7

Growth: 4.6

Quality: 7.8

Yield: 3.1

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

Coloplast

A-Score: 4.5/10

Value: 1.8

Growth: 4.0

Quality: 6.7

Yield: 6.2

Momentum: 0.0

Volatility: 8.3

1-Year Total Return ->

Straumann

A-Score: 4.2/10

Value: 1.1

Growth: 5.7

Quality: 8.0

Yield: 3.1

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Sartorius Stedim Biotech

A-Score: 3.2/10

Value: 0.6

Growth: 5.6

Quality: 4.7

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.23%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.36%

Straumann Holding AG - CH1175448666

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on STMN

1.c. Company Highlights

Expensive

Better Quality

Higher Growth

Higher Yield

Earnings Beats

Revenues Miss

Average Quality

Average Growth

Revenues Beats

Earnings Miss

Average Yield

Stable Momentum

Weak Momentum

2. Straumann's 2025 Earnings: Strong Revenue Growth and Margin Expansion

Regional Performance

Guidance and Outlook

Valuation

Operational Highlights

Margin Expansion Drivers

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Operations

Expected Growth: 8.0%

Sales Europe, Middle East and Africa (EMEA)

Expected Growth: 9.0%

Sales North America (NAM)

Expected Growth: 11.0%

Sales Asia Pacific (APAC)

Expected Growth: 12.0%

Sales Latin America (LATAM)

Expected Growth: 10.0%

Eliminations

Expected Growth: 0.0%

7. Detailed Products

Dental Implants

CARES Digital Dentistry

Bone and Tissue Regeneration

Prosthetic Components

Digital Dentures

8. Straumann Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Straumann Holding AG passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

94.54$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA