RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
BIT:REC - Euronext Milan - IT0003828271 - Common Stock - Currency: EUR
REC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Pharmaceuticals industry. REC has a medium profitability rating, but doesn't score so well on its financial health evaluation. REC is valied quite expensively at the moment, while 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.
REC had positive earnings in each of the past 5 years.
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 8.09%, REC is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
With a decent Return On Equity value of 21.13%, REC is doing good in the industry, outperforming 68.63% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.36%, REC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REC is below the industry average of 14.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 21.13% | ||
| ROIC | 12.36% |
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 has a Profit Margin of 17.32%. This is in the better half of the industry: REC outperforms 76.47% of its industry peers.
REC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.69%, REC belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
REC's Operating Margin has declined in the last couple of years.
REC has a Gross Margin of 68.09%. This is comparable to the rest of the industry: REC outperforms 43.14% of its industry peers.
In the last couple of years the Gross Margin of REC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.69% | ||
| PM (TTM) | 17.32% | ||
| GM | 68.09% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REC is creating some value.
Compared to 1 year ago, REC has about the same amount of shares outstanding.
The number of shares outstanding for REC has been increased compared to 5 years ago.
REC has a worse debt/assets ratio than last year.
2.2 Solvency
REC has an Altman-Z score of 3.76. This indicates that REC is financially healthy and has little risk of bankruptcy at the moment.
REC's Altman-Z score of 3.76 is in line compared to the rest of the industry. REC outperforms 54.90% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that REC has dependencies on debt financing.
The Debt to Equity ratio of REC (1.05) is worse than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.76 |
ROIC/WACC1.62
WACC7.61%
2.3 Liquidity
REC has a Current Ratio of 1.59. This is a normal value and indicates that REC is financially healthy and should not expect problems in meeting its short term obligations.
REC has a Current ratio of 1.59. This is in the better half of the industry: REC outperforms 68.63% of its industry peers.
A Quick Ratio of 1.09 indicates that REC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, REC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.95% over the past year.
REC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.74% yearly.
The Revenue has grown by 12.85% in the past year. This is quite good.
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)12.95%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-0.17%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.92%
3.2 Future
Based on estimates for the next years, REC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.30% on average per year.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y14.96%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
EPS Next 5Y12.3%
Revenue Next Year13.21%
Revenue Next 2Y9.72%
Revenue Next 3Y8.31%
Revenue Next 5Y7.35%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.26, which means the current valuation is very expensive for REC.
REC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. REC is around the same levels.
REC is valuated rather expensively with a Price/Forward Earnings ratio of 17.35.
REC's Price/Forward Earnings ratio is in line with the industry average.
REC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
REC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of REC may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)9.6
EPS Next 2Y11.76%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.30%.
REC's Dividend Yield is a higher than the industry average which is at 2.92.
REC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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
60.80% 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.
DP60.8%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
BIT:REC (6/19/2025, 7:00:00 PM)
53.3
-0.2 (-0.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners28.5%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.15B
Analysts70.67
Price Target59.18 (11.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.23
Dividend Growth(5Y)5.7%
DP60.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.31%
Min EPS beat(2)-21.63%
Max EPS beat(2)-0.99%
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)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)1.39%
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)0.83%
PT rev (3m)1.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 17.35 | ||
| P/S | 4.62 | ||
| P/FCF | N/A | ||
| P/OCF | 19.1 | ||
| P/B | 5.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.59 |
EPS(TTM)2.03
EY3.81%
EPS(NY)3.07
Fwd EY5.76%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)2.79
OCFY5.24%
SpS11.54
BVpS9.46
TBVpS-6.16
PEG (NY)1.76
PEG (5Y)9.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.09% | ||
| ROE | 21.13% | ||
| ROCE | 15.99% | ||
| ROIC | 12.36% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 86.2% | ||
| OM | 27.69% | ||
| PM (TTM) | 17.32% | ||
| GM | 68.09% | ||
| 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 478.04% | ||
| Cap/Sales | 35.25% | ||
| Interest Coverage | 7.3 | ||
| Cash Conversion | 68.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.76 |
F-Score6
WACC7.61%
ROIC/WACC1.62
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)12.95%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-0.17%
EPS Next Y14.96%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
EPS Next 5Y12.3%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.92%
Revenue Next Year13.21%
Revenue Next 2Y9.72%
Revenue Next 3Y8.31%
Revenue Next 5Y7.35%
EBIT growth 1Y14.75%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year44.75%
EBIT Next 3Y18.7%
EBIT Next 5Y14.16%
FCF growth 1Y-174.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.94%
OCF growth 3Y5.01%
OCF growth 5Y12.33%