GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
USA - NASDAQ:GRFS - US3984384087 - ADR
8.63 USD
-0.59 (-6.4%)
8.69 USD
+0.06 (+0.7%)
We assign a fundamental rating of 6 out of 10 to GRFS. GRFS was compared to 534 industry peers in the Biotechnology industry. While GRFS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GRFS may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GRFS was profitable.
GRFS had a positive operating cash flow in the past year.
GRFS had positive earnings in each of the past 5 years.
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
The Return On Assets of GRFS (1.50%) is better than 89.89% of its industry peers.
The Return On Equity of GRFS (5.75%) is better than 92.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.79%, GRFS belongs to the top of the industry, outperforming 92.32% of the companies in the same industry.
GRFS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 15.38%.
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
Looking at the Profit Margin, with a value of 3.99%, GRFS belongs to the top of the industry, outperforming 90.82% of the companies in the same industry.
In the last couple of years the Profit Margin of GRFS has declined.
With an excellent Operating Margin value of 17.80%, GRFS belongs to the best of the industry, outperforming 93.82% of the companies in the same industry.
In the last couple of years the Operating Margin of GRFS has declined.
With a decent Gross Margin value of 39.37%, GRFS is doing good in the industry, outperforming 74.16% of the companies in the same industry.
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.
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.
GRFS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GRFS (1.31) is better than 63.48% of its industry peers.
GRFS has a debt to FCF ratio of 12.89. This is a negative value and a sign of low solvency as GRFS would need 12.89 years to pay back of all of its debts.
GRFS's Debt to FCF ratio of 12.89 is amongst the best of the industry. GRFS outperforms 91.20% of its industry peers.
GRFS has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.66, GRFS is not doing good in the industry: 79.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 12.89 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.93
WACC5.14%
2.3 Liquidity
GRFS has a Current Ratio of 2.64. This indicates that GRFS is financially healthy and has no problem in meeting its short term obligations.
GRFS's Current ratio of 2.64 is on the low side compared to the rest of the industry. GRFS is outperformed by 68.35% of its industry peers.
A Quick Ratio of 0.95 indicates that GRFS may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, GRFS is not doing good in the industry: 87.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 109.19% 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.
GRFS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.32%.
The Revenue has been growing slightly by 7.18% on average over the past years.
EPS 1Y (TTM)109.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%750%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
3.2 Future
GRFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.62% yearly.
Based on estimates for the next years, GRFS will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y44.31%
EPS Next 2Y35.34%
EPS Next 3Y31.39%
EPS Next 5Y23.62%
Revenue Next Year5.31%
Revenue Next 2Y5.66%
Revenue Next 3Y6.07%
Revenue Next 5Y6.19%
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
Based on the Price/Earnings ratio of 16.92, the valuation of GRFS can be described as correct.
GRFS's Price/Earnings ratio is rather cheap when compared to the industry. GRFS is cheaper than 95.51% of the companies in the same industry.
GRFS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.36 indicates a rather cheap valuation of GRFS.
Based on the Price/Forward Earnings ratio, GRFS is valued cheaply inside the industry as 98.31% of the companies are valued more expensively.
GRFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
97.75% of the companies in the same industry are more expensive than GRFS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 99.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | 7.37 |
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.
The decent profitability rating of GRFS may justify a higher PE ratio.
GRFS's earnings are expected to grow with 31.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y35.34%
EPS Next 3Y31.39%
5. Dividend
5.1 Amount
GRFS has a Yearly Dividend Yield of 4.71%, which is a nice return.
Compared to an average industry Dividend Yield of 89.86, GRFS pays a better dividend. On top of this GRFS pays more dividend than 99.25% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
5.2 History
The dividend of GRFS decreases each year by -66.87%.
GRFS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-66.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y35.34%
EPS Next 3Y31.39%
8.63
-0.59 (-6.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner Change-0.01%
Ins Owners6.36%
Ins Owner ChangeN/A
Market Cap5.87B
Revenue(TTM)7.45B
Net Income(TTM)297.45M
Analysts75
Price Target13.32 (54.35%)
Short Float %2.06%
Short Ratio10.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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)-1.72%
PT rev (3m)3.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 7.36 | ||
| P/S | 0.69 | ||
| P/FCF | 7.35 | ||
| P/OCF | 4.62 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.37 |
EPS(TTM)0.51
EY5.91%
EPS(NY)1.17
Fwd EY13.58%
FCF(TTM)1.17
FCFY13.61%
OCF(TTM)1.87
OCFY21.62%
SpS12.57
BVpS8.73
TBVpS-7.48
PEG (NY)0.38
PEG (5Y)N/A
Graham Number10.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.75% | ||
| ROCE | 7.45% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 11.58% | ||
| 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%
ROICexgc growth 3Y11.6%
ROICexgc 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 | 1.66 | ||
| Debt/FCF | 12.89 | ||
| Debt/EBITDA | 4.86 | ||
| Cap/Depr | 93.6% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 62.7% | ||
| Profit Quality | 233.89% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.31 |
F-Score8
WACC5.14%
ROIC/WACC0.93
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)109.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%750%
EPS Next Y44.31%
EPS Next 2Y35.34%
EPS Next 3Y31.39%
EPS Next 5Y23.62%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
Revenue Next Year5.31%
Revenue Next 2Y5.66%
Revenue Next 3Y6.07%
Revenue Next 5Y6.19%
EBIT growth 1Y44.14%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year47.43%
EBIT Next 3Y22.74%
EBIT Next 5Y16.88%
FCF growth 1Y239.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y883.42%
OCF growth 3YN/A
OCF growth 5YN/A
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 for 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 expected EPS growth for GRFS stock?
The Earnings per Share (EPS) of GRIFOLS SA-ADR (GRFS) is expected to grow by 44.31% in the next year.
Can you provide the dividend sustainability for GRFS stock?
The dividend rating of GRIFOLS SA-ADR (GRFS) is 5 / 10 and the dividend payout ratio is 0%.