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Sandoz Group AGSTU:D8Y -0.85%39 Net Margin % is 1.88% as of Jun. 2026, which is 77% below its 10-year median of 8.19. GuruFocus rates STU:D8Y with a GF Score™ of 39/100 and a GF Value™ of €51.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 959 Drug Manufacturers companies, Sandoz Group AG ranks better than 50.57% on this metric.
Sandoz Group AG (STU:D8Y) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sandoz Group AG Net Margin % Related Terms
Sandoz Group AG Net Margin % Historical Data
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The historical data trend for Sandoz Group AG's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:D8Y vs ZTS, UTHR, VTRS: Net Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sandoz Group AG Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sandoz Group AG's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sandoz Group AG (STU:D8Y) has a Net Margin % of 1.88% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sandoz Group AG and its competitors. This is 77% below median its historical median of 8.19. Over the past decade, Sandoz Group AG's Net Margin % has ranged from 0.77 to 9.11. According to the industry distribution chart, Sandoz Group AG ranks #474 out of 959 companies in the Drug Manufacturers industry, placing it in the top 49.4%.
Is Sandoz Group AG's Net Margin % too high?
Sandoz Group AG's current Net Margin % of 1.88% is 77% below median its 10-year median of 8.19. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 9.11. The Drug Manufacturers industry median Net Margin % is 5.32. Sandoz Group AG's value of 1.88% is 64.7% below this industry median. Based on the distribution chart, Sandoz Group AG ranks #474 out of 959 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Sandoz Group AG has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sandoz Group AG ranks #474 out of 959 companies for Net Margin %. This puts Sandoz Group AG in the upper half of its industry. The industry median Net Margin % is 5.32. Sandoz Group AG's value of 1.88% is 64.7% below this benchmark. Historically, Sandoz Group AG's own Net Margin % has ranged from 0.77 to 9.11 over the past decade. While the company's 10-year median is 8.19 vs. the industry median of 5.32, Sandoz Group AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.32, based on 959 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sandoz Group AG's current Net Margin % of 1.88% is 64.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sandoz Group AG and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sandoz Group AG's current Net Margin % is 1.88%, which is 77% below median its own 10-year median of 8.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Based on GuruFocus' analysis, Sandoz Group AG (STU:D8Y) is currently considered Significantly Overvalued. The stock's GF Value™ is €51.27, compared to a current price of €77.16 — trading 50.5% above its estimated fair value. The current Net Margin % is 1.88%, which is 77% below median its 10-year median of 8.19 and 64.7% below the Drug Manufacturers industry median of 5.32. Sandoz Group AG's overall GF Score™ is 39/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sandoz Group AG (STU:D8Y), the current Net Margin % is 1.88% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sandoz Group AG (STU:D8Y) Overvalued in 2026?
Based on GuruFocus' analysis, Sandoz Group AG stock appears to be overvalued.
The current stock price of €77.16 is trading 50.5% above its estimated GF Value™ of €51.27.
GuruFocus considers Sandoz Group AG to be Significantly Overvalued.
Key valuation signals for STU:D8Y:
Net Margin %: 1.88% (77% below median its 10-year median of 8.19)
GF Value™: €51.27 vs. price of €77.16 (50.5% above fair value)
Industry Position: 64.7% below the Drug Manufacturers median (#474 of 959)
No single metric tells the full story. See the STU:D8Y stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
39GF Score
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