9.27 USD
+0.07 (+0.76%)
GRFS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. GRFS scores excellent on profitability, but there are some minor concerns on its financial health. GRFS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- GRFS had positive earnings in the past year.
- In the past year GRFS had a positive cash flow from operations.
- Each year in the past 5 years GRFS has been profitable.
- In multiple years GRFS reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.88%, GRFS belongs to the top of the industry, outperforming 89.14% of the companies in the same industry.
- The Return On Equity of GRFS (7.20%) is better than 91.43% of its industry peers.
- GRFS has a better Return On Invested Capital (4.93%) than 91.81% of its industry peers.
- GRFS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 18.07%.
- The last Return On Invested Capital (4.93%) for GRFS is above the 3 year average (2.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.2% | ||
| ROIC | 4.93% |
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
- The Profit Margin of GRFS (4.96%) is better than 89.52% of its industry peers.
- GRFS's Profit Margin has declined in the last couple of years.
- GRFS has a better Operating Margin (18.06%) than 94.29% of its industry peers.
- GRFS's Operating Margin has declined in the last couple of years.
- The Gross Margin of GRFS (39.09%) is better than 73.71% of its industry peers.
- In the last couple of years the Gross Margin of GRFS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 4.96% | ||
| GM | 39.09% |
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.
- GRFS has about the same amout of shares outstanding than it did 1 year ago.
- GRFS has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for GRFS has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.32, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of GRFS (1.32) is better than 64.38% 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 90.29% of the companies in the same industry.
- GRFS has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.76, GRFS is doing worse than 78.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.96
WACC5.16%
2.3 Liquidity
- GRFS has a Current Ratio of 2.48. This indicates that GRFS is financially healthy and has no problem in meeting its short term obligations.
- GRFS has a Current ratio of 2.48. This is in the lower half of the industry: GRFS underperforms 70.67% of its industry peers.
- GRFS has a Quick Ratio of 2.48. This is a bad value and indicates that GRFS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.93, GRFS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 160.05% over the past year.
- GRFS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.99% yearly.
- The Revenue has been growing slightly by 7.31% in the past year.
- GRFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)160.05%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%133.5%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%4.04%
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 22.45% on average per year.
- The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y40.91%
EPS Next 2Y33.09%
EPS Next 3Y30.53%
EPS Next 5Y22.45%
Revenue Next Year5.37%
Revenue Next 2Y5.26%
Revenue Next 3Y5.69%
Revenue Next 5Y5.88%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.26, GRFS is valued correctly.
- GRFS's Price/Earnings ratio is rather cheap when compared to the industry. GRFS is cheaper than 96.57% of the companies in the same industry.
- GRFS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 8.05, the valuation of GRFS can be described as reasonable.
- GRFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GRFS is cheaper than 99.05% of the companies in the same industry.
- GRFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 8.05 |
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 98.10% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 99.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
- GRFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of GRFS may justify a higher PE ratio.
- GRFS's earnings are expected to grow with 30.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y33.09%
EPS Next 3Y30.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.44%, GRFS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.08, GRFS pays a better dividend. On top of this GRFS pays more dividend than 99.24% of the companies listed in the same industry.
- GRFS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
- 27.73% of the earnings are spent on dividend by GRFS. This is a low number and sustainable payout ratio.
DP27.73%
EPS Next 2Y33.09%
EPS Next 3Y30.53%
GRIFOLS SA-ADR / GRFS FAQ
Can you provide the ChartMill fundamental rating for GRIFOLS SA-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to GRFS.
What is the valuation status of GRIFOLS SA-ADR (GRFS) stock?
ChartMill assigns a valuation rating of 9 / 10 to GRIFOLS SA-ADR (GRFS). This can be considered as Undervalued.
What is the profitability of GRFS stock?
GRIFOLS SA-ADR (GRFS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GRFS stock?
The Price/Earnings (PE) ratio for GRIFOLS SA-ADR (GRFS) is 14.26 and the Price/Book (PB) ratio is 1.03.
What is the financial health of GRIFOLS SA-ADR (GRFS) stock?
The financial health rating of GRIFOLS SA-ADR (GRFS) is 4 / 10.