Straumann Earnings: Marks a Solid End to 2024 and Gains Market Share Thanks to Innovation

Narrow-moat Straumann reported solid fourth-quarter earnings that were largely in line with our expectations. Total sales of CHF 645 million were up 3.4% year on year, or 9.5% excluding the DrSmile divestiture impact, and core EBITDA margin came in at 29.5%, improving 100 basis points from last year. With Feb. 19’s results, Straumann finished the year with 35% market share in the CHF 6 billion global implantology industry, representing a 300-basis-point increase versus last year. The firm’s persistent market outperformance, in our opinion, speaks to solid execution, continued innovation, and commercial success, and we believe these three pillars uphold Straumann’s narrow moat. After updating our model and accounting for time value, we raise our fair value estimate to CHF 120 per share from CHF 112, and we think shares are slightly overvalued at the current price.