GRIFOLS SA-ADR (GRFS) Stock Fundamental Analysis
NASDAQ:GRFS - Nasdaq - US3984384087 - ADR - Currency: USD
GRFS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 558 industry peers in the Biotechnology industry. While GRFS has a great profitability rating, 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.
Each year in the past 5 years GRFS has been profitable.
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
Looking at the Return On Assets, with a value of 0.93%, GRFS belongs to the top of the industry, outperforming 90.50% of the companies in the same industry.
GRFS's Return On Equity of 3.46% is amongst the best of the industry. GRFS outperforms 92.65% of its industry peers.
GRFS has a better Return On Invested Capital (4.20%) than 92.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRFS is significantly below the industry average of 14.78%.
The last Return On Invested Capital (4.20%) for GRFS is above the 3 year average (2.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.46% | ||
| ROIC | 4.2% |
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
With an excellent Profit Margin value of 2.65%, GRFS belongs to the best of the industry, outperforming 91.40% of the companies in the same industry.
GRFS's Profit Margin has declined in the last couple of years.
GRFS has a better Operating Margin (16.65%) than 95.16% of its industry peers.
GRFS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.77%, GRFS is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
GRFS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.65% | ||
| PM (TTM) | 2.65% | ||
| GM | 38.77% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GRFS is destroying value.
Compared to 1 year ago, GRFS has about the same amount of shares outstanding.
Compared to 5 years ago, GRFS has about the same amount of shares outstanding.
The debt/assets ratio for GRFS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that GRFS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GRFS (1.23) is better than 67.74% of its industry peers.
GRFS has a debt to FCF ratio of 12.50. This is a negative value and a sign of low solvency as GRFS would need 12.50 years to pay back of all of its debts.
GRFS has a Debt to FCF ratio of 12.50. This is amongst the best in the industry. GRFS outperforms 92.29% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that GRFS has dependencies on debt financing.
GRFS has a Debt to Equity ratio of 1.67. This is amonst the worse of the industry: GRFS underperforms 80.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 12.5 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.75
WACC5.58%
2.3 Liquidity
GRFS has a Current Ratio of 2.60. This indicates that GRFS is financially healthy and has no problem in meeting its short term obligations.
GRFS has a Current ratio of 2.60. This is in the lower half of the industry: GRFS underperforms 69.18% of its industry peers.
GRFS has a Quick Ratio of 2.60. 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's Quick ratio of 0.97 is on the low side compared to the rest of the industry. GRFS is outperformed by 87.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.72% over the past year.
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 10.76%.
GRFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)15.72%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%192.67%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%9.85%
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 24.46% on average per year.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y42.14%
EPS Next 2Y37.01%
EPS Next 3Y30.46%
EPS Next 5Y24.46%
Revenue Next Year7.14%
Revenue Next 2Y7.15%
Revenue Next 3Y6.89%
Revenue Next 5Y5.86%
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
Based on the Price/Earnings ratio of 25.82, the valuation of GRFS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GRFS indicates a rather cheap valuation: GRFS is cheaper than 94.62% of the companies listed in the same industry.
GRFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
GRFS is valuated cheaply with a Price/Forward Earnings ratio of 7.26.
Based on the Price/Forward Earnings ratio, GRFS is valued cheaply inside the industry as 97.49% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GRFS to the average of the S&P500 Index (21.43), we can say GRFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.82 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
97.49% of the companies in the same industry are more expensive than GRFS, based on the Enterprise Value to EBITDA ratio.
98.39% of the companies in the same industry are more expensive than GRFS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 8.31 |
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.
The decent profitability rating of GRFS may justify a higher PE ratio.
GRFS's earnings are expected to grow with 30.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y37.01%
EPS Next 3Y30.46%
5. Dividend
5.1 Amount
No dividends for GRFS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.78
+0.27 (+3.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners34.27%
Inst Owner Change3.98%
Ins Owners6.34%
Ins Owner ChangeN/A
Market Cap5.97B
Analysts73.68
Price Target12.85 (46.36%)
Short Float %1.09%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-66.87%
DP0.49%
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)-4.06%
PT rev (3m)-1.45%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-13.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.82 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.69 | ||
| P/FCF | 6.35 | ||
| P/OCF | 4.24 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.31 |
EPS(TTM)0.34
EY3.87%
EPS(NY)1.21
Fwd EY13.77%
FCF(TTM)1.38
FCFY15.75%
OCF(TTM)2.07
OCFY23.57%
SpS12.69
BVpS9.7
TBVpS-9.61
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.46% | ||
| ROCE | 6.53% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.43% | ||
| ROICexgc | 12% | ||
| OM | 16.65% | ||
| PM (TTM) | 2.65% | ||
| GM | 38.77% | ||
| FCFM | 10.9% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 12.5 | ||
| Debt/EBITDA | 5.62 | ||
| Cap/Depr | 89.85% | ||
| Cap/Sales | 5.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.93% | ||
| Profit Quality | 411.63% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.23 |
F-Score8
WACC5.58%
ROIC/WACC0.75
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)15.72%
EPS 3Y-6.22%
EPS 5Y-23.99%
EPS Q2Q%192.67%
EPS Next Y42.14%
EPS Next 2Y37.01%
EPS Next 3Y30.46%
EPS Next 5Y24.46%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y13.5%
Revenue growth 5Y7.18%
Sales Q2Q%9.85%
Revenue Next Year7.14%
Revenue Next 2Y7.15%
Revenue Next 3Y6.89%
Revenue Next 5Y5.86%
EBIT growth 1Y39%
EBIT growth 3Y27.11%
EBIT growth 5Y0.58%
EBIT Next Year53.59%
EBIT Next 3Y23.7%
EBIT Next 5Y14.83%
FCF growth 1Y-79.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-168.33%
OCF growth 3YN/A
OCF growth 5YN/A