GRIFOLS SA-ADR (GRFS)
US3984384087 - ADR
We assign a fundamental rating of 5 out of 10 to GRFS. GRFS was compared to 571 industry peers in the Biotechnology industry. GRFS has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GRFS.
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.
GRFS had positive earnings in each of the past 5 years.
Of the past 5 years GRFS 4 years had a positive operating cash flow.
1.2 Ratios
GRFS's Return On Assets of 0.68% is amongst the best of the industry. GRFS outperforms 93.30% of its industry peers.
Looking at the Return On Equity, with a value of 2.71%, GRFS belongs to the top of the industry, outperforming 94.36% of the companies in the same industry.
GRFS has a Return On Invested Capital of 3.95%. This is amongst the best in the industry. GRFS outperforms 94.36% of its industry peers.
GRFS had an Average Return On Invested Capital over the past 3 years of 2.86%. This is significantly below the industry average of 13.56%.
The last Return On Invested Capital (3.95%) for GRFS is above the 3 year average (2.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 2.71% | ||
| ROIC | 3.95% |
ROA(3y)0.74%
ROA(5y)2.06%
ROE(3y)2.61%
ROE(5y)6.58%
ROIC(3y)2.86%
ROIC(5y)4.04%
1.3 Margins
Looking at the Profit Margin, with a value of 2.23%, GRFS belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
In the last couple of years the Profit Margin of GRFS has declined.
The Operating Margin of GRFS (13.55%) is better than 95.59% of its industry peers.
In the last couple of years the Operating Margin of GRFS has declined.
GRFS has a Gross Margin of 38.51%. This is in the better half of the industry: GRFS outperforms 76.37% of its industry peers.
GRFS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.55% | ||
| PM (TTM) | 2.23% | ||
| GM | 38.51% |
OM growth 3Y-15.14%
OM growth 5Y-12.82%
PM growth 3Y-57.33%
PM growth 5Y-41.65%
GM growth 3Y-3.59%
GM growth 5Y-3.69%
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.
The number of shares outstanding for GRFS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GRFS has about the same amount of shares outstanding.
Compared to 1 year ago, GRFS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.04, GRFS is doing good in the industry, outperforming 66.84% of the companies in the same industry.
The Debt to FCF ratio of GRFS is 123.38, which is on the high side as it means it would take GRFS, 123.38 years of fcf income to pay off all of its debts.
GRFS has a Debt to FCF ratio of 123.38. This is amongst the best in the industry. GRFS outperforms 92.24% of its industry peers.
GRFS has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.42, GRFS is doing worse than 80.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 123.38 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.58
WACC6.79%
2.3 Liquidity
A Current Ratio of 1.68 indicates that GRFS should not have too much problems paying its short term obligations.
GRFS has a worse Current ratio (1.68) than 79.72% of its industry peers.
GRFS has a Quick Ratio of 1.68. This is a bad value and indicates that GRFS is not financially healthy enough and could expect problems in meeting its short term obligations.
GRFS's Quick ratio of 0.80 is on the low side compared to the rest of the industry. GRFS is outperformed by 89.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
GRFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.52%.
GRFS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.87% yearly.
Looking at the last year, GRFS shows a quite strong growth in Revenue. The Revenue has grown by 8.71% in the last year.
The Revenue has been growing slightly by 8.00% on average over the past years.
EPS 1Y (TTM)-71.52%
EPS 3Y-54.06%
EPS 5Y-36.87%
EPS Q2Q%-75%
Revenue 1Y (TTM)8.71%
Revenue growth 3Y7.27%
Revenue growth 5Y8%
Sales Q2Q%-43.63%
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 27.83% on average per year.
GRFS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y38.57%
EPS Next 2Y43.78%
EPS Next 3Y36.8%
EPS Next 5Y27.83%
Revenue Next Year7.59%
Revenue Next 2Y7.29%
Revenue Next 3Y7.13%
Revenue Next 5Y5.75%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.96, GRFS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 95.06% of the companies listed in the same industry.
GRFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.13, the valuation of GRFS can be described as very cheap.
98.94% of the companies in the same industry are more expensive than GRFS, based on the Price/Forward Earnings ratio.
GRFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 6.13 |
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 97.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GRFS is valued cheaper than 94.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.25 | ||
| EV/EBITDA | 9.84 |
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.
GRFS's earnings are expected to grow with 36.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y43.78%
EPS Next 3Y36.8%
5. Dividend
5.1 Amount
GRFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GRIFOLS SA-ADR
NASDAQ:GRFS (11/29/2024, 3:33:10 PM)
After market: 6.99 0 (0%)6.99
-1.08 (-13.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.75B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 6.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 2.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.55% | ||
| PM (TTM) | 2.23% | ||
| GM | 38.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-71.52%
EPS 3Y-54.06%
EPS 5Y
EPS Q2Q%
EPS Next Y38.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.71%
Revenue growth 3Y7.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y