GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
USA - NASDAQ:GRFS - US3984384087 - ADR
9.82 USD
+0.07 (+0.72%)
9.82 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GRFS. GRFS was compared to 540 industry peers in the Biotechnology industry. GRFS has an excellent profitability rating, but there are some minor concerns on its financial health. GRFS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GRFS had positive earnings in the past year.
GRFS had a positive operating cash flow in the past year.
Each year in the past 5 years GRFS has been profitable.
The reported operating cash flow has been mixed in the past 5 years: GRFS reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.50%, GRFS belongs to the top of the industry, outperforming 89.81% of the companies in the same industry.
With an excellent Return On Equity value of 5.75%, GRFS belongs to the best of the industry, outperforming 91.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.79%, GRFS belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRFS is significantly below the industry average of 15.95%.
The 3 year average ROIC (2.90%) for GRFS is below the current ROIC(4.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.75% | ||
| ROIC | 4.79% |
ROA(3y)0.66%
ROA(5y)1.4%
ROE(3y)2.39%
ROE(5y)4.54%
ROIC(3y)2.9%
ROIC(5y)3.1%
1.3 Margins
GRFS's Profit Margin of 3.99% is amongst the best of the industry. GRFS outperforms 90.74% of its industry peers.
GRFS's Profit Margin has declined in the last couple of years.
The Operating Margin of GRFS (17.80%) is better than 93.89% of its industry peers.
In the last couple of years the Operating Margin of GRFS has declined.
The Gross Margin of GRFS (39.37%) is better than 73.89% of its industry peers.
In the last couple of years the Gross Margin of GRFS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 3.99% | ||
| GM | 39.37% |
OM growth 3Y11.99%
OM growth 5Y-6.16%
PM growth 3Y-17.15%
PM growth 5Y-29.24%
GM growth 3Y-0.88%
GM growth 5Y-3.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRFS is destroying value.
The number of shares outstanding for GRFS remains at a similar level compared to 1 year ago.
The number of shares outstanding for GRFS remains at a similar level compared to 5 years ago.
The debt/assets ratio for GRFS has been reduced compared to a year ago.
2.2 Solvency
GRFS has an Altman-Z score of 1.34. This is a bad value and indicates that GRFS is not financially healthy and even has some risk of bankruptcy.
GRFS has a Altman-Z score of 1.34. This is in the better half of the industry: GRFS outperforms 64.26% of its industry peers.
GRFS has a debt to FCF ratio of 13.86. This is a negative value and a sign of low solvency as GRFS would need 13.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.86, GRFS belongs to the top of the industry, outperforming 91.48% of the companies in the same industry.
A Debt/Equity ratio of 1.76 is on the high side and indicates that GRFS has dependencies on debt financing.
The Debt to Equity ratio of GRFS (1.76) is worse than 79.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.88
WACC5.45%
2.3 Liquidity
A Current Ratio of 2.64 indicates that GRFS has no problem at all paying its short term obligations.
The Current ratio of GRFS (2.64) is worse than 68.15% of its industry peers.
A Quick Ratio of 0.95 indicates that GRFS may have some problems paying its short term obligations.
The Quick ratio of GRFS (0.95) is worse than 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
GRFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.19%, which is quite impressive.
The earnings per share for GRFS have been decreasing by -23.99% on average. This is quite bad
The Revenue has grown by 9.32% in the past year. This is quite good.
GRFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)110.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%760.5%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
3.2 Future
Based on estimates for the next years, GRFS will show a very strong growth in Earnings Per Share. The EPS will grow by 24.06% on average per year.
Based on estimates for the next years, GRFS will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y44.87%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
EPS Next 5Y24.06%
Revenue Next Year5.62%
Revenue Next 2Y6.15%
Revenue Next 3Y6.46%
Revenue Next 5Y6.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.88 indicates a rather expensive valuation of GRFS.
Based on the Price/Earnings ratio, GRFS is valued cheaply inside the industry as 94.63% of the companies are valued more expensively.
GRFS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.00, which indicates a very decent valuation of GRFS.
GRFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GRFS is cheaper than 97.78% of the companies in the same industry.
GRFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 97.04% of the companies listed in the same industry.
98.70% of the companies in the same industry are more expensive than GRFS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GRFS has a very decent profitability rating, which may justify a higher PE ratio.
GRFS's earnings are expected to grow with 32.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y37.4%
EPS Next 3Y32.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, GRFS is a good candidate for dividend investing.
GRFS's Dividend Yield is rather good when compared to the industry average which is at 178.49. GRFS pays more dividend than 99.07% of the companies in the same industry.
GRFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of GRFS decreases each year by -66.87%.
GRFS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-66.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
9.82
+0.07 (+0.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners34.27%
Inst Owner Change-1.14%
Ins Owners6.34%
Ins Owner ChangeN/A
Market Cap6.68B
Analysts74
Price Target13.55 (37.98%)
Short Float %0.86%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend0
Dividend Growth(5Y)-66.87%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.52%
PT rev (3m)1.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 8 | ||
| P/S | 0.76 | ||
| P/FCF | 8.13 | ||
| P/OCF | 5.12 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.06 |
EPS(TTM)0.52
EY5.3%
EPS(NY)1.23
Fwd EY12.5%
FCF(TTM)1.21
FCFY12.3%
OCF(TTM)1.92
OCFY19.54%
SpS12.93
BVpS8.98
TBVpS-9.32
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.75% | ||
| ROCE | 7.45% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 13.28% | ||
| OM | 17.8% | ||
| PM (TTM) | 3.99% | ||
| GM | 39.37% | ||
| FCFM | 9.34% |
ROA(3y)0.66%
ROA(5y)1.4%
ROE(3y)2.39%
ROE(5y)4.54%
ROIC(3y)2.9%
ROIC(5y)3.1%
ROICexc(3y)3.07%
ROICexc(5y)3.33%
ROICexgc(3y)6.89%
ROICexgc(5y)7.47%
ROCE(3y)4.51%
ROCE(5y)4.82%
ROICexcg growth 3Y11.6%
ROICexcg growth 5Y-8.62%
ROICexc growth 3Y14.21%
ROICexc growth 5Y-7.74%
OM growth 3Y11.99%
OM growth 5Y-6.16%
PM growth 3Y-17.15%
PM growth 5Y-29.24%
GM growth 3Y-0.88%
GM growth 5Y-3.34%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 93.6% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.7% | ||
| Profit Quality | 233.89% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.34 |
F-Score8
WACC5.45%
ROIC/WACC0.88
Cap/Depr(3y)62.1%
Cap/Depr(5y)77.33%
Cap/Sales(3y)1.39%
Cap/Sales(5y)3.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%760.5%
EPS Next Y44.87%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
EPS Next 5Y24.06%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
Revenue Next Year5.62%
Revenue Next 2Y6.15%
Revenue Next 3Y6.46%
Revenue Next 5Y6.08%
EBIT growth 1Y44.14%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year53.59%
EBIT Next 3Y23.7%
EBIT Next 5Y14.28%
FCF growth 1Y239.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y883.42%
OCF growth 3YN/A
OCF growth 5YN/A