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1. Company Snapshot

1.a. Company Description

Stratec SE, together with its subsidiaries, designs and manufactures automation and instrumentation solutions in the fields of in-vitro diagnostics and life sciences in Germany, European Union, and internationally.It operates through three segments: Instrumentation, Diatron, and Smart Consumables.The Instrumentation segment designs and manufactures automated analyzer systems, including service parts and consumables for clinical diagnostics and biotechnology customers.


The Diatron segment offers systems, system components, consumables, and tests for the low throughput hematology and clinical chemistry applications.The Smart Consumables segment develops and manufactures smart consumables in the fields of diagnostics, life sciences, and medical technologies.The company was formerly known as STRATEC Biomedical AG and changed its name to Stratec SE in December 2018.


Stratec SE was founded in 1979 and is headquartered in Birkenfeld, Germany.

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1.b. Last Insights on SBS

Stratec SE's recent performance was negatively impacted by a 1.6% decline in revenue to €257.6m in FY 2024, primarily due to the imposition of U.S. trade tariffs, which have weighed on investor sentiment and economic uncertainty. Additionally, the company's growth prospects have been hindered by inflationary pressures and a challenging market environment. Furthermore, the recent easing of tariff concerns has not yet translated into significant revenue growth, suggesting that the company's operations remain under pressure.

1.c. Company Highlights

2. Stratec's Q3 2025 Earnings: Mixed Performance Amidst Supply Chain Challenges

Stratec reported a 2.5% sales growth at constant exchange rates, reaching €175.6 million for the 9-month period ending in 2025, driven by double-digit increases in development and service sales. However, the adjusted EBIT margin declined by 150 basis points to 7.3% due to a less favorable product mix and reduced share of high-margin service parts and consumable sales. The company's net income decreased by 15.8% year-over-year to €7.1 million, resulting in an adjusted earnings per share of €0.58. The actual EPS came out at €0.13, lower than the estimated €0.17.

Publication Date: Nov -24

📋 Highlights
  • Modest Sales Growth Amid Challenges: 2.5% increase to €175.6M driven by double-digit growth in development and service sales despite supply chain issues.
  • Adjusted EBIT Margin Decline: Margins dropped 150 bps to 7.3% due to unfavorable product mix and reduced high-margin service parts sales.
  • Net Income Drop: 15.8% decrease to €7.1M, translating to €0.58 adjusted EPS, reflecting margin pressures and operational costs.
  • Q4 Earnings Recovery Expected: CFO forecasts improved earnings dynamics in Q4 with better tax rates, though full-year margin guidance remains at the lower end of 10-12%.
  • Financing & Cash Flow Progress: €4.4M positive operating cash flow in Q3 and a €125M syndicated loan to optimize financing flexibility and fund growth initiatives.

Operational Highlights

Despite supply chain interruptions, Stratec achieved growth in development and service sales. The company's operating cash flow improved in Q3, amounting to a positive €4.4 million. Tanja Bucherl, the new CFO, noted that a significantly improved earnings dynamic is expected in the fourth quarter, with a notable better tax rate. The company successfully closed a €125 million syndicated loan, optimizing its financing structure and providing flexibility for future development.

Guidance and Outlook

Stratec confirmed its margin guidance but mentioned it will likely end up towards the lower end of the 10-12% adjusted EBIT margin guidance. The company expects to match the previous year's top-line figures on a constant currency basis and an adjusted EBIT margin towards the lower end of the 10-12% guidance. Analysts estimate next year's revenue growth at 6.7%, indicating a positive outlook.

Valuation Metrics

With a P/E Ratio of 16.86 and an EV/EBITDA of 7.83, Stratec's valuation appears reasonable. The company's ROE (%) is 6.23, and ROIC (%) is 5.12, indicating a decent return on equity and invested capital. The Net Debt / EBITDA ratio is 2.44, suggesting a manageable debt level.

Business Developments

Stratec continues to grow its footprint in selected markets like high-sensitivity immunoassays, advanced imaging, and cell & gene therapy. The M&A pipeline is well-filled, with a focus on technologies, markets, and geographies, particularly in the US, China, and Europe, to overcome geopolitics. The company aims to improve cash flow dynamics, with a focus on inventory management, aiming to reduce inventory levels by EUR 20-30 million over the next couple of years.

Risk Factors

The company faces risks related to supply chain interruptions, which may impact pricing. Additionally, there is a risk that development sales planned for Q4 may be booked in Q1 2026. However, Stratec has factored in these risks and doesn't expect a significant impact from the Supreme Court's activities on tariffs.

3. NewsRoom

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What Is Driving the Changing Narrative for Stratec?

Nov -20

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Stratec SE (STSEY) Q3 2025 Earnings Call Highlights: Navigating Growth Amidst Supply Chain ...

Nov -14

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Oct -31

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3 Global Stocks That May Be Trading At A Discount Of Up To 34.4%

Oct -31

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Oct -31

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Health Care Roundup: Market Talk

Oct -08

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European Market Insights Bénéteau And Two Other Stocks Possibly Priced Below Value Estimates

Oct -03

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European Growth Companies With High Insider Ownership Growing Earnings Up To 57%

Oct -01

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.53%)

6. Segments

Analyzer Systems

Expected Growth: 7%

Analyzer Systems from Stratec SE's 7% growth is driven by increasing demand for automated laboratory diagnostics, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, such as AI-powered diagnostic solutions, and its strong presence in the molecular diagnostics market also contribute to its growth.

Service Parts and Consumables

Expected Growth: 9%

Stratec SE's Service Parts and Consumables segment growth of 9% is driven by increasing demand for in-vitro diagnostics, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on digitalization and automation of laboratory processes, as well as its broad product portfolio, contribute to its growth momentum.

Development and Services

Expected Growth: 6%

Stratec SE's Development and Services segment growth is driven by increasing demand for laboratory equipment and software solutions, expansion into emerging markets, strategic partnerships, and investments in research and development. Additionally, the segment benefits from the growing need for automation and digitalization in the healthcare industry, leading to a growth rate of 6.

Other

Expected Growth: 5%

Stratec SE's 'Other' segment growth is driven by increasing demand for molecular diagnostics, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, particularly in the development of automated systems, has led to increased sales and revenue growth.

7. Detailed Products

Analyzer Systems

Stratec SE's analyzer systems are designed for clinical diagnostics, providing accurate and reliable results for various medical tests.

Molecular Diagnostics

Stratec SE's molecular diagnostics solutions enable the detection and analysis of genetic material, supporting personalized medicine and targeted therapies.

Immunodiagnostic Systems

Stratec SE's immunodiagnostic systems are used for the detection and quantification of antibodies, antigens, and other biomarkers in various medical applications.

Life Science Research Instruments

Stratec SE's life science research instruments are designed for various applications, including PCR, sequencing, and microarray analysis.

Point-of-Care Testing

Stratec SE's point-of-care testing solutions enable rapid and accurate diagnosis at the patient's bedside or in the doctor's office.

8. Stratec SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Stratec SE operates in the in-vitro diagnostics industry, which is characterized by a moderate threat of substitutes. While there are alternative diagnostic methods, Stratec SE's products and services are highly specialized, reducing the likelihood of substitution.

Bargaining Power Of Customers

Stratec SE's customers are primarily large pharmaceutical and biotechnology companies, which have limited bargaining power due to their dependence on Stratec SE's specialized products and services.

Bargaining Power Of Suppliers

Stratec SE relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company's dependence on a few critical suppliers for certain components may give them some bargaining power.

Threat Of New Entrants

The in-vitro diagnostics industry has high barriers to entry, including significant capital expenditures and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The in-vitro diagnostics industry is highly competitive, with several established players competing for market share. Stratec SE faces intense competition from companies such as Roche, Siemens, and Abbott.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.40%
Debt Cost 3.95%
Equity Weight 64.60%
Equity Cost 4.49%
WACC 4.30%
Leverage 54.79%

11. Quality Control: Stratec SE passed 3 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

Stock-Card
Medartis

A-Score: 3.9/10

Value: 3.0

Growth: 5.0

Quality: 4.5

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

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IceCure Medical

A-Score: 3.6/10

Value: 6.0

Growth: 2.8

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

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Euroapi

A-Score: 3.6/10

Value: 9.8

Growth: 3.3

Quality: 2.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Stratec

A-Score: 3.0/10

Value: 5.4

Growth: 3.4

Quality: 4.4

Yield: 3.1

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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InspireMD

A-Score: 2.9/10

Value: 6.2

Growth: 4.2

Quality: 3.9

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

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Bactiguard Holding

A-Score: 2.0/10

Value: 4.0

Growth: 4.8

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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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

22.9$

Current Price

22.9$

Potential

-0.00%

Expected Cash-Flows