GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
NASDAQ:GRFS - US3984384087 - ADR
9.85 USD
-0.03 (-0.3%)
9.85 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GRFS. GRFS was compared to 541 industry peers in the Biotechnology industry. While GRFS has a great profitability rating, there are some minor concerns on its financial health. GRFS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GRFS was profitable.
In the past year GRFS had a positive cash flow from operations.
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
GRFS's Return On Assets of 1.50% is amongst the best of the industry. GRFS outperforms 89.83% of its industry peers.
GRFS has a better Return On Equity (5.75%) than 91.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.79%, GRFS belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
GRFS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 15.95%.
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
Looking at the Profit Margin, with a value of 3.99%, GRFS belongs to the top of the industry, outperforming 90.76% of the companies in the same industry.
GRFS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.80%, GRFS belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
In the last couple of years the Operating Margin of GRFS has declined.
GRFS has a better Gross Margin (39.37%) than 73.75% of its industry peers.
In the last couple of years the Gross Margin of GRFS has declined.
| 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.
The number of shares outstanding for GRFS remains at a similar level compared to 5 years ago.
The debt/assets ratio for GRFS has been reduced compared to a year ago.
2.2 Solvency
GRFS has an Altman-Z score of 1.34. This is a bad value and indicates that GRFS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GRFS (1.34) is better than 64.14% of its industry peers.
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.
The Debt to FCF ratio of GRFS (13.86) is better than 91.50% of its industry peers.
GRFS has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.76, GRFS is doing worse than 80.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.86
WACC5.55%
2.3 Liquidity
A Current Ratio of 2.64 indicates that GRFS has no problem at all paying its short term obligations.
With a Current ratio value of 2.64, GRFS is not doing good in the industry: 68.02% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that GRFS may have some problems paying its short term obligations.
The Quick ratio of GRFS (0.95) is worse than 87.06% 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.
Measured over the past years, GRFS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.99% on average per year.
The Revenue has grown by 9.32% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 24.06% on average over the next years. This is a very strong growth
GRFS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y44.87%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
EPS Next 5Y24.06%
Revenue Next Year6%
Revenue Next 2Y6.36%
Revenue Next 3Y6.42%
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
GRFS is valuated rather expensively with a Price/Earnings ratio of 18.94.
Compared to the rest of the industry, the Price/Earnings ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 94.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GRFS to the average of the S&P500 Index (27.07), we can say GRFS is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.08 indicates a reasonable valuation of GRFS.
97.78% of the companies in the same industry are more expensive than GRFS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.59. GRFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 8.08 |
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 97.04% of the companies listed in the same industry.
GRFS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GRFS is cheaper than 98.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
The 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.
GRFS's earnings are expected to grow with 32.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y37.4%
EPS Next 3Y32.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.03%, GRFS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 167.86, GRFS pays a better dividend. On top of this GRFS pays more dividend than 99.08% of the companies listed in the same industry.
GRFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
The dividend of GRFS decreases each year by -66.87%.
GRFS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-66.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
9.85
-0.03 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners34.27%
Inst Owner Change-1.14%
Ins Owners6.34%
Ins Owner ChangeN/A
Market Cap6.70B
Analysts74
Price Target13.61 (38.17%)
Short Float %0.89%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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)0.96%
PT rev (3m)1.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 8.08 | ||
| P/S | 0.77 | ||
| P/FCF | 8.2 | ||
| P/OCF | 5.17 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)0.52
EY5.28%
EPS(NY)1.22
Fwd EY12.38%
FCF(TTM)1.2
FCFY12.19%
OCF(TTM)1.91
OCFY19.36%
SpS12.85
BVpS8.92
TBVpS-9.27
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
WACC5.55%
ROIC/WACC0.86
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 Y44.87%
EPS Next 2Y37.4%
EPS Next 3Y32.6%
EPS Next 5Y24.06%
Revenue 1Y (TTM)9.32%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%102.26%
Revenue Next Year6%
Revenue Next 2Y6.36%
Revenue Next 3Y6.42%
Revenue Next 5Y6.08%
EBIT growth 1Y44.14%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year53.59%
EBIT Next 3Y23.7%
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