RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:REC - IT0003828271 - Common Stock
48.14 EUR
-0.42 (-0.86%)
Overall REC gets a fundamental rating of 5 out of 10. We evaluated REC against 54 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of REC while its profitability can be described as average. REC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
REC had positive earnings in the past year.
REC had a positive operating cash flow in the past year.
In the past 5 years REC has always been profitable.
Each year in the past 5 years REC had a positive operating cash flow.
1.2 Ratios
REC has a better Return On Assets (7.87%) than 62.26% of its industry peers.
Looking at the Return On Equity, with a value of 21.77%, REC is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
REC's Return On Invested Capital of 12.31% is fine compared to the rest of the industry. REC outperforms 62.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REC is in line with the industry average of 13.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 21.77% | ||
| ROIC | 12.31% |
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
REC's Profit Margin of 16.42% is fine compared to the rest of the industry. REC outperforms 67.92% of its industry peers.
REC's Profit Margin has declined in the last couple of years.
The Operating Margin of REC (26.76%) is better than 71.70% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
REC's Gross Margin of 67.79% is in line compared to the rest of the industry. REC outperforms 45.28% of its industry peers.
REC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.76% | ||
| PM (TTM) | 16.42% | ||
| GM | 67.79% |
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.
Compared to 1 year ago, REC has about the same amount of shares outstanding.
REC has more shares outstanding than it did 5 years ago.
REC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.46 indicates that REC is not in any danger for bankruptcy at the moment.
REC has a Altman-Z score of 3.46. This is comparable to the rest of the industry: REC outperforms 50.94% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that REC has dependencies on debt financing.
REC has a worse Debt to Equity ratio (1.16) than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.46 |
ROIC/WACC1.6
WACC7.67%
2.3 Liquidity
REC has a Current Ratio of 1.47. 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 (1.47) is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that REC should not have too much problems paying its short term obligations.
The Quick ratio of REC (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.75% over the past year.
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.
REC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.51%.
The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)10.75%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-10.39%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
3.2 Future
REC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
Based on estimates for the next years, REC will show a quite strong growth in Revenue. The Revenue will grow by 8.49% on average per year.
EPS Next Y2.94%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
EPS Next 5Y12.89%
Revenue Next Year12.87%
Revenue Next 2Y9.79%
Revenue Next 3Y8.79%
Revenue Next 5Y8.49%
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
With a Price/Earnings ratio of 24.44, REC is valued on the expensive side.
REC's Price/Earnings is on the same level as the industry average.
REC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.39, REC is valued correctly.
REC's Price/Forward Earnings ratio is in line with the industry average.
REC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 16.39 |
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 | 14.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REC does not grow enough to justify the current Price/Earnings ratio.
REC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.32
PEG (5Y)8.93
EPS Next 2Y9.29%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.62%.
REC's Dividend Yield is a higher than the industry average which is at 1.85.
REC's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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
64.48% of the earnings are spent on dividend by REC. This is not a sustainable payout ratio.
REC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.48%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
BIT:REC (12/19/2025, 7:00:00 PM)
48.14
-0.42 (-0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners30.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.07B
Revenue(TTM)2.48B
Net Income(TTM)407.26M
Analysts74.67
Price Target61.06 (26.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend1.23
Dividend Growth(5Y)5.7%
DP64.48%
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)1.2%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.29%
EPS NY rev (3m)-8.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 16.39 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | 17.51 | ||
| P/B | 5.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.23 |
EPS(TTM)1.97
EY4.09%
EPS(NY)2.94
Fwd EY6.1%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.71%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)8.32
PEG (5Y)8.93
Graham Number19.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 21.77% | ||
| ROCE | 16.15% | ||
| ROIC | 12.31% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 85.95% | ||
| OM | 26.76% | ||
| PM (TTM) | 16.42% | ||
| GM | 67.79% | ||
| 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%
ROICexgc growth 3Y-16.79%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 464.32% | ||
| Cap/Sales | 35.24% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 67.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.46 |
F-Score6
WACC7.67%
ROIC/WACC1.6
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)10.75%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-10.39%
EPS Next Y2.94%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
EPS Next 5Y12.89%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year12.87%
Revenue Next 2Y9.79%
Revenue Next 3Y8.79%
Revenue Next 5Y8.49%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year44.51%
EBIT Next 3Y18.7%
EBIT Next 5Y15.08%
FCF growth 1Y-168.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.39%
OCF growth 3Y5.01%
OCF growth 5Y12.33%
RECORDATI INDUSTRIA CHIMICA / REC.MI FAQ
What is the ChartMill fundamental rating of RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to REC.MI.
What is the valuation status for REC stock?
ChartMill assigns a valuation rating of 2 / 10 to RECORDATI INDUSTRIA CHIMICA (REC.MI). This can be considered as Overvalued.
How profitable is RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
RECORDATI INDUSTRIA CHIMICA (REC.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
The Price/Earnings (PE) ratio for RECORDATI INDUSTRIA CHIMICA (REC.MI) is 24.44 and the Price/Book (PB) ratio is 5.38.
What is the earnings growth outlook for RECORDATI INDUSTRIA CHIMICA?
The Earnings per Share (EPS) of RECORDATI INDUSTRIA CHIMICA (REC.MI) is expected to grow by 2.94% in the next year.