RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - BIT:REC - IT0003828271 - Common Stock
52.1 EUR
-0.25 (-0.48%)
We assign a fundamental rating of 4 out of 10 to REC. REC was compared to 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.
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 7.87%, REC is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
REC's Return On Equity of 21.77% is fine compared to the rest of the industry. REC outperforms 68.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.31%, REC is in line with its industry, outperforming 59.26% 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 below the industry average of 14.71%.
| 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 66.67% of its industry peers.
In the last couple of years the Profit Margin of REC has declined.
REC's Operating Margin of 26.76% is fine compared to the rest of the industry. REC outperforms 72.22% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
The Gross Margin of REC (67.79%) 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 | 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.
REC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, REC has more shares outstanding
REC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that REC is not in any danger for bankruptcy at the moment.
REC has a Altman-Z score of 3.61. This is comparable to the rest of the industry: REC outperforms 50.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.16, REC is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.61 |
ROIC/WACC1.66
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.47 indicates that REC should not have too much problems paying its short term obligations.
The Current ratio of REC (1.47) is better than 68.52% of its industry peers.
A Quick Ratio of 1.01 indicates that REC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, REC is in the better half of the industry, outperforming 61.11% of the companies in the same 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.
The Revenue has grown by 11.51% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 12.68% on average over the next years. This is quite good.
REC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y6.48%
EPS Next 2Y10.95%
EPS Next 3Y10.55%
EPS Next 5Y12.68%
Revenue Next Year13.6%
Revenue Next 2Y10.14%
Revenue Next 3Y8.87%
Revenue Next 5Y8.07%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.45, REC can be considered very expensive at the moment.
REC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of REC to the average of the S&P500 Index (27.40), we can say REC is valued inline with the index average.
REC is valuated rather expensively with a Price/Forward Earnings ratio of 17.21.
The rest of the industry has a similar Price/Forward Earnings ratio as REC.
REC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
REC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.2 |
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.
PEG (NY)4.08
PEG (5Y)9.67
EPS Next 2Y10.95%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.43%.
Compared to an average industry Dividend Yield of 3.10, REC has a dividend in line with its industry peers.
REC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 2Y10.95%
EPS Next 3Y10.55%
BIT:REC (10/17/2025, 7:00:00 PM)
52.1
-0.25 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners29.06%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.90B
Analysts74.67
Price Target60.43 (15.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)0%
PT rev (3m)0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.79%
EPS NY rev (3m)-7.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 17.21 | ||
| P/S | 4.39 | ||
| P/FCF | N/A | ||
| P/OCF | 18.95 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.2 |
EPS(TTM)1.97
EY3.78%
EPS(NY)3.03
Fwd EY5.81%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.28%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)4.08
PEG (5Y)9.67
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%
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 Turnover0.48
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 | 3.61 |
F-Score6
WACC7.42%
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 Y6.48%
EPS Next 2Y10.95%
EPS Next 3Y10.55%
EPS Next 5Y12.68%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year13.6%
Revenue Next 2Y10.14%
Revenue Next 3Y8.87%
Revenue Next 5Y8.07%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year45.73%
EBIT Next 3Y19.05%
EBIT Next 5Y14.53%
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%