GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
USA - NASDAQ:GRFS - US3984384087 - ADR
10.02 USD
+0.05 (+0.5%)
10.02 USD
0 (0%)
Taking everything into account, GRFS scores 6 out of 10 in our fundamental rating. GRFS was compared to 536 industry peers in the Biotechnology industry. While GRFS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GRFS may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GRFS was profitable.
GRFS had a positive operating cash flow in the past year.
GRFS had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: GRFS reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 1.50%, GRFS belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
With an excellent Return On Equity value of 5.75%, GRFS belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
GRFS's Return On Invested Capital of 4.79% is amongst the best of the industry. GRFS outperforms 92.35% of its industry peers.
GRFS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 16.17%.
The last Return On Invested Capital (4.79%) for GRFS is above the 3 year average (2.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.75% | ||
| ROIC | 4.79% |
ROA(3y)0.66%
ROA(5y)1.4%
ROE(3y)2.39%
ROE(5y)4.54%
ROIC(3y)2.9%
ROIC(5y)3.1%
1.3 Margins
GRFS has a better Profit Margin (3.99%) than 90.86% of its industry peers.
GRFS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.80%, GRFS belongs to the best of the industry, outperforming 93.84% of the companies in the same industry.
In the last couple of years the Operating Margin of GRFS has declined.
The Gross Margin of GRFS (39.37%) is better than 74.07% of its industry peers.
GRFS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 3.99% | ||
| GM | 39.37% |
OM growth 3Y11.99%
OM growth 5Y-6.16%
PM growth 3Y-17.15%
PM growth 5Y-29.24%
GM growth 3Y-0.88%
GM growth 5Y-3.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRFS is destroying value.
GRFS has about the same amout of shares outstanding than it did 1 year ago.
GRFS has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for GRFS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.34, GRFS is doing good in the industry, outperforming 63.43% of the companies in the same industry.
The Debt to FCF ratio of GRFS is 13.86, which is on the high side as it means it would take GRFS, 13.86 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.86, GRFS belongs to the top of the industry, outperforming 91.42% of the companies in the same industry.
A Debt/Equity ratio of 1.76 is on the high side and indicates that GRFS has dependencies on debt financing.
The Debt to Equity ratio of GRFS (1.76) is worse than 79.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.85
WACC5.61%
2.3 Liquidity
GRFS has a Current Ratio of 2.64. This indicates that GRFS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.64, GRFS is doing worse than 68.28% of the companies in the same industry.
GRFS has a Quick Ratio of 2.64. This is a bad value and indicates that GRFS is not financially healthy enough and could expect problems in meeting its short term obligations.
GRFS has a Quick ratio of 0.95. This is amonst the worse of the industry: GRFS underperforms 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
GRFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.19%, which is quite impressive.
GRFS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.99% yearly.
GRFS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.32%.
GRFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)110.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%760.5%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
3.2 Future
Based on estimates for the next years, GRFS will show a very strong growth in Earnings Per Share. The EPS will grow by 24.06% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y46.39%
EPS Next 2Y37.18%
EPS Next 3Y32.5%
EPS Next 5Y24.06%
Revenue Next Year5.62%
Revenue Next 2Y6.15%
Revenue Next 3Y6.46%
Revenue Next 5Y6.08%
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 19.27, which indicates a rather expensive current valuation of GRFS.
Based on the Price/Earnings ratio, GRFS is valued cheaper than 94.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRFS to the average of the S&P500 Index (27.86), we can say GRFS is valued slightly cheaper.
GRFS is valuated reasonably with a Price/Forward Earnings ratio of 8.26.
98.13% of the companies in the same industry are more expensive than GRFS, based on the Price/Forward Earnings ratio.
GRFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 97.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GRFS is valued cheaper than 98.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
GRFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GRFS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRFS's earnings are expected to grow with 32.50% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y37.18%
EPS Next 3Y32.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, GRFS is a good candidate for dividend investing.
GRFS's Dividend Yield is rather good when compared to the industry average which is at 170.03. GRFS pays more dividend than 99.07% of the companies in the same industry.
GRFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
The dividend of GRFS decreases each year by -66.87%.
GRFS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-66.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y37.18%
EPS Next 3Y32.5%
10.02
+0.05 (+0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner Change-1.14%
Ins Owners6.36%
Ins Owner ChangeN/A
Market Cap6.82B
Analysts74
Price Target13.55 (35.23%)
Short Float %1.86%
Short Ratio6.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend0
Dividend Growth(5Y)-66.87%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.43%
PT rev (3m)5.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.05%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 8.26 | ||
| P/S | 0.78 | ||
| P/FCF | 8.36 | ||
| P/OCF | 5.26 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)0.52
EY5.19%
EPS(NY)1.21
Fwd EY12.11%
FCF(TTM)1.2
FCFY11.96%
OCF(TTM)1.9
OCFY19%
SpS12.83
BVpS8.91
TBVpS-9.25
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.75% | ||
| ROCE | 7.45% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 13.28% | ||
| OM | 17.8% | ||
| PM (TTM) | 3.99% | ||
| GM | 39.37% | ||
| FCFM | 9.34% |
ROA(3y)0.66%
ROA(5y)1.4%
ROE(3y)2.39%
ROE(5y)4.54%
ROIC(3y)2.9%
ROIC(5y)3.1%
ROICexc(3y)3.07%
ROICexc(5y)3.33%
ROICexgc(3y)6.89%
ROICexgc(5y)7.47%
ROCE(3y)4.51%
ROCE(5y)4.82%
ROICexcg growth 3Y11.6%
ROICexcg growth 5Y-8.62%
ROICexc growth 3Y14.21%
ROICexc growth 5Y-7.74%
OM growth 3Y11.99%
OM growth 5Y-6.16%
PM growth 3Y-17.15%
PM growth 5Y-29.24%
GM growth 3Y-0.88%
GM growth 5Y-3.34%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 93.6% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.7% | ||
| Profit Quality | 233.89% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.34 |
F-Score8
WACC5.61%
ROIC/WACC0.85
Cap/Depr(3y)62.1%
Cap/Depr(5y)77.33%
Cap/Sales(3y)1.39%
Cap/Sales(5y)3.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.19%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%760.5%
EPS Next Y46.39%
EPS Next 2Y37.18%
EPS Next 3Y32.5%
EPS Next 5Y24.06%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
Revenue Next Year5.62%
Revenue Next 2Y6.15%
Revenue Next 3Y6.46%
Revenue Next 5Y6.08%
EBIT growth 1Y44.14%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year47.43%
EBIT Next 3Y22.74%
EBIT Next 5Y14.28%
FCF growth 1Y239.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y883.42%
OCF growth 3YN/A
OCF growth 5YN/A