GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
USA - NASDAQ:GRFS - US3984384087 - ADR
9.55 USD
+0.21 (+2.25%)
9.56 USD
+0.01 (+0.1%)
Taking everything into account, GRFS scores 6 out of 10 in our fundamental rating. GRFS was compared to 534 industry peers in the Biotechnology industry. While GRFS has a great profitability rating, 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
In the past year GRFS was profitable.
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
With an excellent Return On Assets value of 1.50%, GRFS belongs to the best of the industry, outperforming 89.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.75%, GRFS belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
GRFS has a Return On Invested Capital of 4.79%. This is amongst the best in the industry. GRFS outperforms 92.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRFS is significantly below the industry average of 15.49%.
The last Return On Invested Capital (4.79%) for GRFS is above the 3 year average (2.90%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 3.99%, GRFS belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
GRFS's Profit Margin has declined in the last couple of years.
GRFS's Operating Margin of 17.80% is amongst the best of the industry. GRFS outperforms 93.82% of its industry peers.
GRFS's Operating Margin has declined in the last couple of years.
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
GRFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GRFS has about the same amount of shares outstanding.
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 1.33, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
GRFS's Altman-Z score of 1.33 is fine compared to the rest of the industry. GRFS outperforms 61.98% 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.
The Debt to FCF ratio of GRFS (13.86) is better than 91.20% of its industry peers.
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 79.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.87
WACC5.49%
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.
The Current ratio of GRFS (2.64) is worse than 67.98% 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
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
GRFS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.32%.
Measured over the past years, GRFS shows a small growth in Revenue. The Revenue has been growing by 7.18% on average per year.
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
GRFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.95% yearly.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y46.39%
EPS Next 2Y37.18%
EPS Next 3Y32.5%
EPS Next 5Y23.95%
Revenue Next Year5.46%
Revenue Next 2Y6.08%
Revenue Next 3Y6.4%
Revenue Next 5Y6.37%
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
Based on the Price/Earnings ratio of 18.73, the valuation of GRFS can be described as rather expensive.
Based on the Price/Earnings ratio, GRFS is valued cheaply inside the industry as 95.32% of the companies are valued more expensively.
GRFS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.95 indicates a rather cheap valuation of GRFS.
Based on the Price/Forward Earnings ratio, GRFS is valued cheaper than 98.50% of the companies in the same industry.
GRFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 7.95 |
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 97.19% of the companies listed in the same industry.
98.69% 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 | 8.05 | ||
| EV/EBITDA | 7.96 |
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.
GRFS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRFS's earnings are expected to grow with 32.50% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y37.18%
EPS Next 3Y32.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, GRFS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 93.65, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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 2Y37.18%
EPS Next 3Y32.5%
9.55
+0.21 (+2.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner Change0.03%
Ins Owners6.36%
Ins Owner ChangeN/A
Market Cap6.50B
Revenue(TTM)7.45B
Net Income(TTM)297.45M
Analysts74.74
Price Target13.67 (43.14%)
Short Float %1.86%
Short Ratio6.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)0.84%
PT rev (3m)6.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.05%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 7.95 | ||
| P/S | 0.75 | ||
| P/FCF | 8.05 | ||
| P/OCF | 5.07 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.96 |
EPS(TTM)0.51
EY5.34%
EPS(NY)1.2
Fwd EY12.58%
FCF(TTM)1.19
FCFY12.43%
OCF(TTM)1.88
OCFY19.73%
SpS12.7
BVpS8.82
TBVpS-9.16
PEG (NY)0.4
PEG (5Y)N/A
Graham Number10.06
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%
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 | 1.76 | ||
| 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 | 1.33 |
F-Score8
WACC5.49%
ROIC/WACC0.87
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 Y46.39%
EPS Next 2Y37.18%
EPS Next 3Y32.5%
EPS Next 5Y23.95%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
Revenue Next Year5.46%
Revenue Next 2Y6.08%
Revenue Next 3Y6.4%
Revenue Next 5Y6.37%
EBIT growth 1Y44.14%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year47.43%
EBIT Next 3Y22.74%
EBIT Next 5Y16.15%
FCF growth 1Y239.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y883.42%
OCF growth 3YN/A
OCF growth 5YN/A