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1. Company Snapshot

1.a. Company Description

Carl Zeiss Meditec AG operates as a medical technology company in Germany, rest of Europe, the United States, Asia, and internationally.It operates in two segments, Ophthalmic Devices and Microsurgery.The Ophthalmic Devices segment offers products and solutions for the diagnosis and treatment of eye diseases; and systems and consumables for cataract, retinal, and refractive surgeries.


It serves practicing ophthalmologists and optometrists, as well as physicians and surgeons in hospitals and outpatient surgery centers.The Microsurgery segment offers visualization solutions for invasive surgical treatments; and solutions in the area of ear, nose and throat, plastic and reconstructive, dental and spinal surgeries.It serves physicians in various fields and hospitals.


The company was founded in 1846 and is headquartered in Jena, Germany.Carl Zeiss Meditec AG is a subsidiary of Carl Zeiss AG.

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1.b. Last Insights on AFX

Carl Zeiss Meditec AG faces challenges, including a profit warning for its fiscal first-quarter earnings, which are expected to be "clearly below" the previous year's figures. The company has also reduced its dividend payment to €0.55, down from last year's comparable payment. Furthermore, despite robust revenue and order growth, the company contends with tariffs and regulatory risks impacting margins. A collaboration agreement with FluoGuide may not offset these short-term concerns.

1.c. Company Highlights

2. Carl Zeiss Meditec AG's Weak Start to FY 2025/26

Carl Zeiss Meditec AG reported a weak start to the year with revenue and EBITA coming in below the prior year, driven by currency headwinds and an unfavorable product mix. Revenue for the quarter was EUR 467 million, a decline of 4.8% year-over-year, while EBITA came in at EUR 8 million, a 77% decline versus the prior year. Earnings per share decreased to minus EUR 0.06, driven by the sharp EBIT decline and negative financial results.

Publication Date: Feb -18

📋 Highlights
  • Revenue Decline:: Q1 2025/26 revenue fell 4.8% to €467M, driven by currency headwinds and unfavorable product mix, with ophthalmology (76% of OPT revenue) down 5.1% to €357M.
  • EBITA Collapse:: EBITA plummeted 77% to €8M, resulting in a €0.06 loss per share, primarily due to margin pressures from China's bifocal IOL challenges and weaker neurosurgical product sales.
  • Segment Weakness:: Microsurgery revenue dropped 3.7% to €110M, hit by currency issues and lower neurosurgical microscope contributions, while U.S. market weakness and competition further strained performance.
  • China-Related Risks:: The bifocal IOL situation in China, including a partial distributor recall, poses an estimated €8M earnings risk, compounded by competitive dynamics and localized manufacturing pressures.
  • Margin Pressures:: Gross margin declined sharply due to currency headwinds, reduced contributions from IOLs and refractive treatment packs, and lower volumes in high-margin consumables.

Segment Performance

The ophthalmology segment, which accounts for 76% of total OPT revenue, reported a decline in revenue to EUR 357 million, down 5.1% year-over-year, driven by currency headwinds, an unfavorable product mix, and weaker sales of refractive treatment packs and intraocular lenses in China. The microsurgery segment reported a revenue of EUR 110 million, down 3.7% year-over-year, mainly due to currency headwinds and an unfavorable product mix.

Guidance Suspension and Challenges

Andreas Pecher outlined the main triggers behind the current guidance suspension, including the bifocal IOL situation in China, competitive dynamics, and softer equipment demand. The company has negotiated a partial recall with external distributors in Carl Zeiss China, which will result in an estimated earnings risk of around EUR 8 million for Carl Zeiss Meditec.

Outlook and Valuation

Analysts estimate next year's revenue growth at 5.7%. The current P/E Ratio is 16.75, and the EV/EBITDA is 8.19. Given the current challenges and the expected growth, it is essential to assess whether the current valuation is justified. As Justus Wehmer mentioned, "near-term volatility remains elevated, but they will provide reliable guidance once swing factors crystallize."

Operational Levers and Future Prospects

The company expects continued momentum from VISUMAX 800 and SMILE pro in China, as well as global traction for KINEVO 900 S. With a strong position in the market and the ability to localize equipment parts quickly, Meditec is well-positioned to address the current challenges and capitalize on future opportunities.

3. NewsRoom

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Carl Zeiss Meditec AG (CZMWF) Q1 2026 Earnings Call Highlights: Navigating Challenges with ...

Feb -20

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Carl Zeiss Meditec Q1 Earnings Call Highlights

Feb -16

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CRDF: New CEO Presents Phase II Readout

Feb -03

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ZEISS announces NMPA approval in China for powerful ophthalmic microscopes enhancing surgical visualization

Feb -02

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Carl Zeiss Meditec (ETR:AFX) Will Pay A Smaller Dividend Than Last Year

Jan -28

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Carl Zeiss Meditec shares sink on profit warning

Jan -22

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Carl Zeiss Meditec AG (CZMWF) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...

Dec -16

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Here's What Analysts Are Forecasting For Carl Zeiss Meditec AG (ETR:AFX) After Its Full-Year Results

Dec -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.49%)

6. Segments

Ophthalmology

Expected Growth: 7%

Strong demand for cataract and refractive surgeries, increasing prevalence of eye diseases, and advancements in ophthalmic technologies drive growth in Ophthalmology segment. Zeiss's innovative products, such as SMILE and ReLEx, and strategic partnerships further boost growth. Expanding presence in emerging markets and increasing adoption of digitalization in ophthalmology also contribute to the 7% growth.

Microsurgery

Expected Growth: 9%

Strong demand for minimally invasive procedures, increasing adoption of robotic-assisted microsurgery, and advancements in ophthalmic and neurosurgical applications drive growth. Zeiss' innovative products, such as the ZEISS TIVATO 700, and strategic partnerships expand market share. Growing healthcare expenditure, aging population, and rising prevalence of eye disorders also contribute to the 9% growth.

7. Detailed Products

Ophthalmic Diagnostics

Carl Zeiss Meditec AG offers a range of ophthalmic diagnostic systems, including optical coherence tomography (OCT) and ultrasound systems, to help diagnose and monitor eye diseases such as glaucoma, cataracts, and age-related macular degeneration.

Intraocular Lenses

The company offers a range of intraocular lenses (IOLs) for cataract surgery, including monofocal, multifocal, and toric lenses, designed to improve visual outcomes and patient satisfaction.

Microsurgery Systems

Carl Zeiss Meditec AG provides microsurgery systems for ophthalmic and neurosurgical applications, including vitreoretinal surgery and neurosurgical procedures.

Refraction and Imaging Systems

The company offers a range of refraction and imaging systems, including autorefractors, keratometers, and optical coherence tomography (OCT) systems, to support eye care professionals in diagnosing and managing eye diseases.

Surgical Ophthalmology

Carl Zeiss Meditec AG provides a range of surgical ophthalmology products, including phacoemulsification systems, vitrectomy systems, and ophthalmic surgical instruments.

8. Carl Zeiss Meditec AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Carl Zeiss Meditec AG is moderate, as there are alternative medical technology companies that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers for Carl Zeiss Meditec AG is low, as the company's products and services are specialized and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Carl Zeiss Meditec AG is moderate, as the company relies on a few key suppliers for critical components and materials.

Threat Of New Entrants

The threat of new entrants for Carl Zeiss Meditec AG is low, as the medical technology industry has high barriers to entry and requires significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for Carl Zeiss Meditec AG is high, as the medical technology industry is highly competitive and companies must continually innovate and improve their products and services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.73%
Debt Cost 8.59%
Equity Weight 93.27%
Equity Cost 8.59%
WACC 8.59%
Leverage 7.21%

11. Quality Control: Carl Zeiss Meditec 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

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Ypsomed

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Growth: 8.2

Quality: 5.7

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Momentum: 3.0

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Carl Zeiss Meditec

A-Score: 3.4/10

Value: 4.0

Growth: 5.1

Quality: 5.7

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A-Score: 2.6/10

Value: 7.2

Growth: 4.4

Quality: 1.9

Yield: 1.2

Momentum: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.9$

Current Price

26.9$

Potential

-0.00%

Expected Cash-Flows