RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
BIT:REC - Euronext Milan - IT0003828271 - Common Stock - Currency: EUR
Overall REC gets a fundamental rating of 4 out of 10. We evaluated REC against 52 industry peers in the Pharmaceuticals industry. REC has a medium profitability rating, but doesn't score so well on its financial health evaluation. REC is quite expensive at the moment. 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.
In the past 5 years REC has always been profitable.
In the past 5 years REC always reported a positive cash flow from operatings.
1.2 Ratios
REC has a better Return On Assets (8.09%) than 73.08% of its industry peers.
The Return On Equity of REC (21.13%) is better than 71.15% of its industry peers.
REC's Return On Invested Capital of 12.36% is fine compared to the rest of the industry. REC outperforms 61.54% of its industry peers.
REC had an Average Return On Invested Capital over the past 3 years of 12.56%. This is in line with the industry average of 14.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 21.13% | ||
| ROIC | 12.36% |
ROA(3y)8.39%
ROA(5y)10.39%
ROE(3y)21.82%
ROE(5y)24.25%
ROIC(3y)12.56%
ROIC(5y)14.53%
1.3 Margins
With a decent Profit Margin value of 17.32%, REC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of REC has declined.
REC has a Operating Margin of 27.69%. This is amongst the best in the industry. REC outperforms 82.69% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
REC has a Gross Margin (68.09%) which is in line with its industry peers.
In the last couple of years the Gross Margin of REC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.69% | ||
| PM (TTM) | 17.32% | ||
| GM | 68.09% |
OM growth 3Y-4.02%
OM growth 5Y-2.11%
PM growth 3Y-10.03%
PM growth 5Y-6.5%
GM growth 3Y-2.14%
GM growth 5Y-0.62%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REC is still creating some value.
The number of shares outstanding for REC remains at a similar level compared to 1 year ago.
REC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for REC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.80 indicates that REC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.80, REC perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
REC has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
REC's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. REC is outperformed by 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.8 |
ROIC/WACC1.67
WACC7.41%
2.3 Liquidity
REC has a Current Ratio of 1.59. This is a normal value and indicates that REC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of REC (1.59) is better than 69.23% of its industry peers.
A Quick Ratio of 1.09 indicates that REC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.09, REC is doing good in the industry, outperforming 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
REC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.95%, which is quite good.
Measured over the past 5 years, REC shows a small growth in Earnings Per Share. The EPS has been growing by 2.74% on average per year.
The Revenue has grown by 12.85% in the past year. This is quite good.
Measured over the past years, REC shows a quite strong growth in Revenue. The Revenue has been growing by 9.58% on average per year.
EPS 1Y (TTM)12.95%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-0.17%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.92%
3.2 Future
Based on estimates for the next years, REC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.55% on average per year.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y14.96%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
EPS Next 5Y12.55%
Revenue Next Year13.21%
Revenue Next 2Y9.72%
Revenue Next 3Y8.31%
Revenue Next 5Y7.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.82 indicates a quite expensive valuation of REC.
The rest of the industry has a similar Price/Earnings ratio as REC.
When comparing the Price/Earnings ratio of REC to the average of the S&P500 Index (27.30), we can say REC is valued inline with the index average.
The Price/Forward Earnings ratio is 17.72, which indicates a rather expensive current valuation of REC.
REC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of REC to the average of the S&P500 Index (21.76), we can say REC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
REC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)9.81
EPS Next 2Y11.76%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, REC has a reasonable but not impressive dividend return.
REC's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.35, REC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of REC has a limited annual growth rate of 5.70%.
Dividend Growth(5Y)5.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
60.80% of the earnings are spent on dividend by REC. This is not a sustainable payout ratio.
The dividend of REC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.8%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
BIT:REC (7/11/2025, 7:00:00 PM)
54.45
-0.1 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners28.5%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.39B
Analysts72
Price Target60.06 (10.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend1.23
Dividend Growth(5Y)5.7%
DP60.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.31%
Min EPS beat(2)-21.63%
Max EPS beat(2)-0.99%
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)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)1.39%
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)1.49%
PT rev (3m)2.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 17.72 | ||
| P/S | 4.72 | ||
| P/FCF | N/A | ||
| P/OCF | 19.51 | ||
| P/B | 5.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)2.03
EY3.73%
EPS(NY)3.07
Fwd EY5.64%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)2.79
OCFY5.13%
SpS11.54
BVpS9.46
TBVpS-6.16
PEG (NY)1.79
PEG (5Y)9.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 21.13% | ||
| ROCE | 15.99% | ||
| ROIC | 12.36% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 86.2% | ||
| OM | 27.69% | ||
| PM (TTM) | 17.32% | ||
| GM | 68.09% | ||
| FCFM | N/A |
ROA(3y)8.39%
ROA(5y)10.39%
ROE(3y)21.82%
ROE(5y)24.25%
ROIC(3y)12.56%
ROIC(5y)14.53%
ROICexc(3y)13.61%
ROICexc(5y)15.94%
ROICexgc(3y)107.06%
ROICexgc(5y)120.52%
ROCE(3y)16.51%
ROCE(5y)18.96%
ROICexcg growth 3Y-16.79%
ROICexcg growth 5Y-5.99%
ROICexc growth 3Y-13.14%
ROICexc growth 5Y-5.73%
OM growth 3Y-4.02%
OM growth 5Y-2.11%
PM growth 3Y-10.03%
PM growth 5Y-6.5%
GM growth 3Y-2.14%
GM growth 5Y-0.62%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 478.04% | ||
| Cap/Sales | 35.25% | ||
| Interest Coverage | 7.3 | ||
| Cash Conversion | 68.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.8 |
F-Score6
WACC7.41%
ROIC/WACC1.67
Cap/Depr(3y)284.95%
Cap/Depr(5y)216.99%
Cap/Sales(3y)19.98%
Cap/Sales(5y)14.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.95%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-0.17%
EPS Next Y14.96%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
EPS Next 5Y12.55%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.92%
Revenue Next Year13.21%
Revenue Next 2Y9.72%
Revenue Next 3Y8.31%
Revenue Next 5Y7.54%
EBIT growth 1Y14.75%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year44.75%
EBIT Next 3Y18.7%
EBIT Next 5Y14.36%
FCF growth 1Y-174.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.94%
OCF growth 3Y5.01%
OCF growth 5Y12.33%