RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
BIT:REC - Euronext Milan - IT0003828271 - Common Stock - Currency: EUR
Overall REC gets a fundamental rating of 5 out of 10. We evaluated REC against 52 industry peers in the Pharmaceuticals industry. While REC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year REC was profitable.
REC had a positive operating cash flow in the past year.
REC had positive earnings in each of the past 5 years.
In the past 5 years REC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.07%, REC belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
REC has a Return On Equity of 22.55%. This is amongst the best in the industry. REC outperforms 84.62% of its industry peers.
The Return On Invested Capital of REC (15.08%) is better than 78.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REC is in line with the industry average of 13.62%.
The 3 year average ROIC (14.61%) for REC is below the current ROIC(15.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 22.55% | ||
| ROIC | 15.08% |
ROA(3y)10.26%
ROA(5y)11.4%
ROE(3y)23.74%
ROE(5y)25.96%
ROIC(3y)14.61%
ROIC(5y)15.51%
1.3 Margins
REC has a Profit Margin of 18.65%. This is amongst the best in the industry. REC outperforms 84.62% of its industry peers.
REC's Profit Margin has declined in the last couple of years.
REC has a better Operating Margin (28.09%) than 86.54% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
REC has a Gross Margin (68.03%) which is comparable to the rest of the industry.
REC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.09% | ||
| PM (TTM) | 18.65% | ||
| GM | 68.03% |
OM growth 3Y-5.88%
OM growth 5Y-3.72%
PM growth 3Y-8.63%
PM growth 5Y-4.15%
GM growth 3Y-1.7%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
REC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for REC has been increased compared to 1 year ago.
REC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, REC has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.76 indicates that REC is not in any danger for bankruptcy at the moment.
REC has a Altman-Z score of 4.76. This is amongst the best in the industry. REC outperforms 80.77% of its industry peers.
REC has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as REC would need 3.29 years to pay back of all of its debts.
REC's Debt to FCF ratio of 3.29 is fine compared to the rest of the industry. REC outperforms 67.31% of its industry peers.
REC has a Debt/Equity ratio of 0.69. This is a neutral value indicating REC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, REC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.98
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.38 indicates that REC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, REC is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that REC may have some problems paying its short term obligations.
REC has a Quick ratio (0.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
REC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.74%.
Measured over the past 5 years, REC shows a small growth in Earnings Per Share. The EPS has been growing by 4.85% on average per year.
REC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.68%.
The Revenue has been growing by 9.02% on average over the past years. This is quite good.
EPS 1Y (TTM)7.74%
EPS 3Y3.69%
EPS 5Y4.85%
EPS Q2Q%46.54%
Revenue 1Y (TTM)11.68%
Revenue growth 3Y12.85%
Revenue growth 5Y9.02%
Sales Q2Q%8.89%
3.2 Future
The Earnings Per Share is expected to grow by 13.57% on average over the next years. This is quite good.
REC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y13.82%
EPS Next 2Y16.99%
EPS Next 3Y14.32%
EPS Next 5Y13.57%
Revenue Next Year11.55%
Revenue Next 2Y12.21%
Revenue Next 3Y10.27%
Revenue Next 5Y7.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.32, the valuation of REC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of REC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, REC is valued at the same level.
The Price/Forward Earnings ratio is 18.10, which indicates a rather expensive current valuation of REC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REC is on the same level as its industry peers.
REC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 18.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REC.
REC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as REC's earnings are expected to grow with 14.32% in the coming years.
PEG (NY)1.98
PEG (5Y)5.64
EPS Next 2Y16.99%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.30%.
Compared to an average industry Dividend Yield of 2.86, REC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, REC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of REC is nicely growing with an annual growth rate of 6.64%!
Dividend Growth(5Y)6.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
REC pays out 58.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
REC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.4%
EPS Next 2Y16.99%
EPS Next 3Y14.32%
BIT:REC (3/7/2025, 7:00:00 PM)
53.55
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners27.41%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.20B
Analysts69.33
Price Target58.38 (9.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.2
Dividend Growth(5Y)6.64%
DP58.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.95%
PT rev (3m)4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.84%
EPS NY rev (3m)4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 18.1 | ||
| P/S | 4.94 | ||
| P/FCF | 23.65 | ||
| P/OCF | 21.11 | ||
| P/B | 5.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.67 |
EPS(TTM)1.96
EY3.66%
EPS(NY)2.96
Fwd EY5.52%
FCF(TTM)2.26
FCFY4.23%
OCF(TTM)2.54
OCFY4.74%
SpS10.85
BVpS8.97
TBVpS-3.64
PEG (NY)1.98
PEG (5Y)5.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 22.55% | ||
| ROCE | 19.33% | ||
| ROIC | 15.08% | ||
| ROICexc | 16.23% | ||
| ROICexgc | 111.87% | ||
| OM | 28.09% | ||
| PM (TTM) | 18.65% | ||
| GM | 68.03% | ||
| FCFM | 20.87% |
ROA(3y)10.26%
ROA(5y)11.4%
ROE(3y)23.74%
ROE(5y)25.96%
ROIC(3y)14.61%
ROIC(5y)15.51%
ROICexc(3y)16.09%
ROICexc(5y)17.03%
ROICexgc(3y)129.61%
ROICexgc(5y)128.14%
ROCE(3y)18.95%
ROCE(5y)20.01%
ROICexcg growth 3Y-2.95%
ROICexcg growth 5Y-3.6%
ROICexc growth 3Y-8.7%
ROICexc growth 5Y-9.25%
OM growth 3Y-5.88%
OM growth 5Y-3.72%
PM growth 3Y-8.63%
PM growth 5Y-4.15%
GM growth 3Y-1.7%
GM growth 5Y-0.7%
F-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 35.41% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 66.49% | ||
| Profit Quality | 111.93% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.76 |
F-Score8
WACC7.61%
ROIC/WACC1.98
Cap/Depr(3y)144.92%
Cap/Depr(5y)228.37%
Cap/Sales(3y)9.71%
Cap/Sales(5y)13.63%
Profit Quality(3y)82.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.74%
EPS 3Y3.69%
EPS 5Y4.85%
EPS Q2Q%46.54%
EPS Next Y13.82%
EPS Next 2Y16.99%
EPS Next 3Y14.32%
EPS Next 5Y13.57%
Revenue 1Y (TTM)11.68%
Revenue growth 3Y12.85%
Revenue growth 5Y9.02%
Sales Q2Q%8.89%
Revenue Next Year11.55%
Revenue Next 2Y12.21%
Revenue Next 3Y10.27%
Revenue Next 5Y7.99%
EBIT growth 1Y16.17%
EBIT growth 3Y6.22%
EBIT growth 5Y4.97%
EBIT Next Year47.64%
EBIT Next 3Y20.43%
EBIT Next 5Y14.86%
FCF growth 1Y21.16%
FCF growth 3Y-27.87%
FCF growth 5Y-21.32%
OCF growth 1Y9.32%
OCF growth 3Y6.34%
OCF growth 5Y6.28%