Stevanato Group: Quality Unquestioned, But Limited Potential
June 20, 2023
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From its headquarters in Italy, the company manufactures and distributes pharmaceutical glass packaging and drug delivery systems for the healthcare industry. Offering safe and reliable solutions, the Stevanato Group ($NYSE:STVN) has achieved international success with its products.
However, despite the undeniable quality that the Stevanato Group has come to represent, there is limited potential for growth. While the company continues to expand its operations, it is limited by the size of the global market.
In addition, while the Stevanato Group’s products are widely used, they are subject to competition from other providers. As a result, there is limited opportunity for significant expansion or profitability in the near future. The Stevanato Group is a reliable provider of pharmaceutical packaging and drug delivery systems, but it likely has limited potential for growth. Investors looking for a high-growth opportunity may be better served by focusing on other ventures.
Share Price
The Stevanato Group has seen a slight rise in stock price, opening at $30.0 on Wednesday and closing at $30.6 – an increase of 1.7% from the previous closing price of 30.1.
However, while the quality of the Group’s products and services is unquestioned, the company itself has limited potential for further growth. The company produces a wide variety of high-quality products that meet the exacting requirements of its customers, and is consistently praised for its commitment to quality and innovation. Despite this, the Stevanato Group’s share price is relatively stagnant due to its limited potential for growth. With most of its products already well established in the market, and its geographic scope limited to Europe, it is difficult for the Group to expand significantly. As such, investors may find that the company’s stock is not a particularly attractive investment option. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stevanato Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.01k | 143.39 | 14.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stevanato Group. More…
| Operations | Investing | Financing |
| 135.3 | -317.1 | -25.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stevanato Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.74k | 712.64 | 3.89 |
Key Ratios Snapshot
Some of the financial key ratios for Stevanato Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | 45.7% | 19.0% |
| FCF Margin | ROE | ROA |
| -18.0% | 11.8% | 6.9% |
Analysis
GoodWhale has conducted an analysis of STEVANATO GROUP‘s fundamentals and the results are promising. According to our Star Chart, STEVANATO GROUP has a high health score of 9/10, which means that the company is capable to sustain future operations even in times of crisis due to its good cashflows and debt. We have classified STEVANATO GROUP as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given the strength of STEVANATO GROUP in terms of growth, asset, dividend, and profitability, the company may be of interest to investors who are looking for a long-term growth opportunity. As such, STEVANATO GROUP is likely to be attractive to growth investors with a long-term horizon. More…
Peers
The company has a long history of success and has a strong market presence in Europe, North America, and Asia. Its main competitors are One Glove Group Bhd, Essilorluxottica, and Ansell Ltd.
– One Glove Group Bhd ($KLSE:5079)
One Glove Group Bhd is a Malaysian company that manufactures and sells gloves. The company has a market capitalization of 133.48 million as of 2022 and a return on equity of -17.63%. One Glove Group Bhd is involved in the production of latex, nitrile, and vinyl gloves. The company also provides gloves for the food, healthcare, and industrial sectors.
– Essilorluxottica ($OTCPK:ESLOY)
With a market capitalization of 78.25 billion as of 2022 and a return on equity of 4.79%, EssilorLuxottica is a French-Italian multinational corporation that designs, manufactures, and markets ophthalmic lenses, optical frames, sunglasses, contact lenses, and prescription eyewear. The company also provides eye care services. EssilorLuxottica is headquartered in Paris, France.
– Ansell Ltd ($ASX:ANN)
Ansell Ltd is a publicly traded company with a market capitalization of 3.53 billion as of 2022. The company has a return on equity of 9.21%. Ansell is a global leader in providing protective solutions. The company designs, develops, manufactures, and markets a variety of protection solutions, including gloves, clothing, and other products.
Summary
Stevanato Group is a global provider of glass packaging and drug delivery systems that has a strong presence in the pharmaceutical industry. Despite its undeniable quality and commitment to excellence, the company’s upside potential may be limited due to its exposure to a mature and competitive market. Investors should also consider the company’s reliance on a few large customers, as well as its limited financial resources.
While the company’s near-term performance is likely to be stable, long-term growth prospects may be hampered by the lack of new and innovative products or services. Investors should do their own due diligence and research before investing in this stock.
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