RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:REC - IT0003828271 - Common Stock
47.41 EUR
-0.29 (-0.61%)
REC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- REC had positive earnings in the past year.
- In the past year REC had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 7.87%, REC is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
- REC has a better Return On Equity (21.77%) than 70.37% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.31%, REC is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- 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 13.93%.
| 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
- The Profit Margin of REC (16.42%) is better than 68.52% of its industry peers.
- REC's Profit Margin has declined in the last couple of years.
- REC has a better Operating Margin (26.76%) than 70.37% of its industry peers.
- In the last couple of years the Operating Margin of REC has declined.
- REC has a Gross Margin of 67.79%. This is comparable to the rest of the industry: REC outperforms 44.44% 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.
- 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.
- REC has a worse debt/assets ratio than last year.
2.2 Solvency
- REC has an Altman-Z score of 3.44. This indicates that REC is financially healthy and has little risk of bankruptcy at the moment.
- REC has a Altman-Z score of 3.44. This is comparable to the rest of the industry: REC outperforms 51.85% 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's Debt to Equity ratio of 1.16 is on the low side compared to the rest of the industry. REC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.44 |
ROIC/WACC1.66
WACC7.4%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that REC should not have too much problems paying its short term obligations.
- REC's Current ratio of 1.47 is in line compared to the rest of the industry. REC outperforms 55.56% of its industry peers.
- A Quick Ratio of 1.01 indicates that REC should not have too much problems paying its short term obligations.
- REC has a Quick ratio of 1.01. This is comparable to the rest of the industry: REC outperforms 51.85% of its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 2.74% on average over the past years.
- REC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.51%.
- 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)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 12.57% yearly.
- Based on estimates for the next years, REC will show a quite strong growth in Revenue. The Revenue will grow by 8.17% on average per year.
EPS Next Y4.24%
EPS Next 2Y8.72%
EPS Next 3Y10.07%
EPS Next 5Y12.57%
Revenue Next Year12.79%
Revenue Next 2Y9.74%
Revenue Next 3Y8.83%
Revenue Next 5Y8.17%
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
- The Price/Earnings ratio is 24.07, which indicates a rather expensive current valuation of REC.
- REC's Price/Earnings is on the same level as the industry average.
- REC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 16.31, REC is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as REC.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, REC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
- REC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.12 |
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.
PEG (NY)5.67
PEG (5Y)8.8
EPS Next 2Y8.72%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
- REC has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.59, REC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, REC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
- REC pays out 64.48% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of REC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.48%
EPS Next 2Y8.72%
EPS Next 3Y10.07%
BIT:REC (1/20/2026, 1:33:02 PM)
47.41
-0.29 (-0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-11 2025-11-11
Earnings (Next)02-11 2026-02-11/amc
Inst Owners31.02%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.91B
Revenue(TTM)2.48B
Net Income(TTM)407.26M
Analysts74.67
Price Target60.13 (26.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)-1.53%
PT rev (3m)-0.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.27%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 16.31 | ||
| P/S | 4 | ||
| P/FCF | N/A | ||
| P/OCF | 17.25 | ||
| P/B | 5.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)1.97
EY4.16%
EPS(NY)2.91
Fwd EY6.13%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.8%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)5.67
PEG (5Y)8.8
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 | 3.44 |
F-Score6
WACC7.4%
ROIC/WACC1.66
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 Y4.24%
EPS Next 2Y8.72%
EPS Next 3Y10.07%
EPS Next 5Y12.57%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year12.79%
Revenue Next 2Y9.74%
Revenue Next 3Y8.83%
Revenue Next 5Y8.17%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year43.18%
EBIT Next 3Y18.7%
EBIT Next 5Y14.75%
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 of RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for REC stock?
The Price/Earnings (PE) ratio for RECORDATI INDUSTRIA CHIMICA (REC.MI) is 24.07 and the Price/Book (PB) ratio is 5.3.
Can you provide the financial health for REC stock?
The financial health rating of RECORDATI INDUSTRIA CHIMICA (REC.MI) is 3 / 10.