Company Reports

Narrow-moat Straumann reported first-quarter earnings that came in as we expected. Total sales of CHF 644 were up 8.1% year over year, or 16.5% in local currencies. Unfavorable headwinds related to the euro, US dollar, and yen created material headwinds—more than 600 basis points—but strong execution and market-share wins in certain regions proved enough to more than offset those impacts. We maintain our fair value estimate of CHF 100 per share.

Straumann is a global leader in dental implants, a market that is estimated to be worth CHF 5.6 billion. With over 60 years of experience, Straumann is frequently ranked as the most credible and trusted dental implant brand in the world. Today, the leading five companies hold about three quarters of the implant market, with the remaining space shared among several hundred local players.

Narrow-moat Straumann reported fourth-quarter earnings that came in slightly higher than our expectations. Total sales of CHF 624 million marked a 5.5% growth, or 13.9% in constant currency, year over year. Continued adoption of Straumann’s premium implants, including BLT and BLX lines, helped the firm expand shares and post robust gains in China and Latin America, offsetting slight weakness in the US and strong foreign exchange headwinds. After adjusting our model and accounting for time value of money impacts, we raise our fair value estimate to CHF 100 per share from CHF 94.

Straumann is a global leader in dental implants, a market that is estimated to be worth CHF 5.2 billion. With over 60 years of experience, Straumann is frequently ranked as the most credible and trusted dental implant brand in the world. Today, the leading five companies hold about three quarters of the implant market with the remaining space shared among several hundred local players.

Narrow-moat Straumann reported third-quarter earnings that were largely in line with our expectations, and we maintain our fair value estimate of CHF 94 per share. Total sales grew 3.7% year over year (11% on constant currency) thanks to strong performance from Asia-Pacific and Latin America with some offsets from unfavorable foreign exchange. During the quarter, Straumann pre-launched iExcel, a new premium implant system designed to combine apically- and fully-tapered implants with both bone- and tissue-level options. We think this bolsters the firm’s already strong position in the premium implant market, improves its positioning in a fast-growing adjacent area, and substantiates its narrow moat. The system should launch first in North America during early 2024 with rollouts in Europe during the second half of the year.

Narrow-moat Straumann reported healthy second-quarter earnings that were in line with our expectations. Total sales were up 5.4% year over year despite unfavorable currency and global inflation effects (organic growth was 11.7%). Patient flow remains favorable in most countries, and all four regions reported solid performance. Straumann continues to win shares in certain markets and bolster its intangible assets thanks to its portfolio of market-leading brands. After updating our full-year assumptions and adjusting for the time value of money, we raise our fair value estimate to CHF 94 from CHF 90.

Straumann is a global leader in dental implants, a market that is estimated to be worth CHF 5.2 billion. With over 60 years of experience, Straumann is frequently ranked as the most credible and trusted dental implant brand in the world. Today, the leading five companies hold about three quarters of the implant market with the remaining space shared among several hundred local players.

Narrow-moat Straumann reported mixed results for the first quarter, with total sales up 1.1% year over year. While most of its serviced regions performed better than expected, China significantly hurt the Asia Pacific region. We maintain our fair value estimate of CHF 90 per share as our near-term lower forecast, mostly to Asia Pacific sales, was offset by time value of money.

Narrow-moat Straumann reported 2022 fourth-quarter and full-year results in line with our expectations. Total sales for the quarter were up 9.6%, as all regions except Asia-Pacific posted another positive quarter to end the year in a strong fashion. Despite tough comparisons with 2021, during which it posted 42% year-over-year revenue growth, the firm was able to grow its 2022 top line 15%. For the quarter, premium implantology continued to fuel growth for mature markets such as North America and Europe, regions that showed 13.7% and 11.3% respective year-over-year growth. Latin America remains the fastest growing region, bolstered by the firm’s leading presence thanks to Neodent, its value implant brand.

Straumann is a global leader in dental implants, a market that is estimated to be worth CHF 5.2 billion. With over 60 years of experience, Straumann is frequently ranked as the most credible and trusted dental implant brand in the world. Today, the leading five companies hold about three quarters of the implant market with the remaining space shared among several hundred local players.

Straumann posted solid third-quarter results that were more or less in line with our near-term assumptions. It is worth noting that third-quarter results usually lag behind figures from the first two quarters due to a slowed volume of dental office visits from people enjoying summer vacations. While the year-over-year growth for the quarter was weaker than the growth during third-quarter 2021, we note that the prior-year period competed against the pandemic-ridden third quarter of 2020. We maintain our fair value estimate of $92 per share.

After reviewing our key valuation assumptions, we have lowered our fair value estimate roughly 35% to CHF 92 per share for Straumann because of our revised outlook of regional growth of the dental implant market.

Straumann is a global leader in dental implants, a market that is estimated to worth CHF 5.2 billion. With over 60 years of experience, Straumann is frequently ranked as the most credible and trusted dental implant brand in the world. Today, the leading five companies hold about three quarters of the implant market with the remaining space shared among several hundred local players.

Narrow-moat Straumann reported strong second-quarter results that slightly exceeded our expectations, with organic sales increasing by 15.1% year-over-year and topping CHF 1 billion in the first half of 2022. However, minor adjustments to our near-term revenue projections for the full year were not enough to move the needle, and we are maintaining our fair value estimate of CHF 140 per share. We also recognize macroeconomic headwinds and delays in the delivery of machinery remain factors that could hamper results in the remainder of the year, though the firm has done a credible job of managing through them so far.

Straumann is a global leader in dental implants, with a dominant position in the premium dental implant market and a growing share of the fragmented non-premium end of the market. The company’s brand is well established and trusted by dental professionals for its high quality and the excellent training and support offered. Furthermore, the technologies behind the company’s premium implants are supported by decades of clinical research and collaboration with academic networks. Given the pickup in demand following COVID-19 disruption to dental offices we believe the size of the market is in 2021 was excess of CHF 5 billion. We anticipate the market will continue to grow faster than global GDP due an aging population in premium markets, a growing middle class with disposable income in strategic growth and emerging markets, and increasing interest in dental hygiene and cosmetic procedures.

Despite a tumultuous quarter across the global dental industry, narrow-moat Straumann reported strong first-quarter results, exceeding our expectations. Despite a decline in consumer confidence given the current macroeconomic and geopolitical environment, organic revenue climbed 25% year over year to CHF 589 million, with strong performance across all regions. We are raising our fair value estimate by a hair to CHF 140 per share, from CHF 133 per share, primarily due to an increase in our near-term revenue projections.

Straumann is a global leader in dental implants, with a dominant position in the premium dental implant market and a growing share of the fragmented non-premium end of the market. The company’s brand is well established and trusted by dental professionals for its high quality and the excellent training and support offered. Furthermore, the technologies behind the company’s premium implants are supported by decades of clinical research and collaboration with academic networks. Given the pickup in demand following COVID-19 disruption to dental offices in 2021, the size of the global dental implant market was in excess of CHF 5 billion. We anticipate the market will continue to grow faster than global GDP due an aging population in premium markets, a growing middle class with disposable income in strategic growth and emerging markets, and increasing interest in dental hygiene and cosmetic procedures.

Straumann is a global leader in dental implants, with a dominant position in the premium dental implant market and a growing share of the fragmented non-premium end of the market. The company’s brand is well established and trusted by dental professionals for its high quality and the excellent training and support offered. Furthermore, the technologies behind the company’s premium implants are supported by decades of clinical research and collaboration with academic networks. Given the pickup in demand following COVID-19 disruption to dental offices we believe the size of the market is in 2021 was excess of CHF 5 billion. We anticipate the market will continue to grow faster than global GDP due an ageing population in premium markets, a growing middle class with disposable income in strategic growth and emerging markets, and increasing interest in dental hygiene and cosmetic procedures.

We are picking up coverage of dental implant manufacturer Straumann with a fair value estimate of CHF 1,330 per share. Despite the stock’s 24% fall over the past month, we believe shares remain 14% overvalued. Straumann commands higher trading multiples relative to dental peers due to its concentration in the highly lucrative premium dental implant market, and lack of meaningful exposure to the highly commoditized dental consumables and equipment market.

We are dropping coverage of Straumann. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.