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 50 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
In the past year REC was profitable.
REC had a positive operating cash flow in the past year.
Each year in the past 5 years REC has been profitable.
REC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REC's Return On Assets of 8.09% is fine compared to the rest of the industry. REC outperforms 73.08% of its industry peers.
REC has a better Return On Equity (21.13%) than 71.15% of its industry peers.
The Return On Invested Capital of REC (12.36%) is better than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REC is below the industry average of 14.77%.
| 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 better Profit Margin (17.32%) than 76.92% of its industry peers.
In the last couple of years the Profit Margin of REC has declined.
REC has a Operating Margin of 27.69%. This is amongst the best in the industry. REC outperforms 82.69% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
REC's Gross Margin of 68.09% is in line compared to the rest of the industry. REC outperforms 46.15% of its industry peers.
REC's Gross Margin has been stable in the last couple of years.
| 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.
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 3.80 indicates that REC is not in any danger for bankruptcy at the moment.
REC has a Altman-Z score (3.80) which is in line with its industry peers.
A Debt/Equity ratio of 1.05 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 1.05, REC is doing worse than 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.8 |
ROIC/WACC1.67
WACC7.41%
2.3 Liquidity
A Current Ratio of 1.59 indicates that REC should not have too much problems paying its short term obligations.
REC has a better Current ratio (1.59) than 69.23% of its industry peers.
A Quick Ratio of 1.09 indicates that REC should not have too much problems paying its short term obligations.
REC has a better Quick ratio (1.09) than 67.31% of its industry peers.
| 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.
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.
Looking at the last year, REC shows a quite strong growth in Revenue. The Revenue has grown by 12.85% in the last year.
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 12.55% on average per year.
Based on estimates for the next years, REC will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.
EPS Next Y14.96%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
EPS Next 5Y12.55%
Revenue Next Year13.21%
Revenue Next 2Y9.72%
Revenue Next 3Y8.31%
Revenue Next 5Y7.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.82, which means the current valuation is very expensive for REC.
REC's Price/Earnings ratio is in line with the industry average.
REC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
REC is valuated rather expensively with a Price/Forward Earnings ratio of 17.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, REC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 17.72 |
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 | 15.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
REC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)9.81
EPS Next 2Y11.76%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, REC has a reasonable but not impressive dividend return.
REC's Dividend Yield is a higher than the industry average which is at 3.00.
REC's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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.
The dividend of REC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.8%
EPS Next 2Y11.76%
EPS Next 3Y10.72%
BIT:REC (7/11/2025, 7:00:00 PM)
54.45
-0.1 (-0.18%)
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 Cap11.39B
Analysts72
Price Target60.06 (10.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)1.49%
PT rev (3m)2.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
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 | 26.82 | ||
| Fwd PE | 17.72 | ||
| P/S | 4.72 | ||
| P/FCF | N/A | ||
| P/OCF | 19.51 | ||
| P/B | 5.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)2.03
EY3.73%
EPS(NY)3.07
Fwd EY5.64%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)2.79
OCFY5.13%
SpS11.54
BVpS9.46
TBVpS-6.16
PEG (NY)1.79
PEG (5Y)9.81
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 | 3.8 |
F-Score6
WACC7.41%
ROIC/WACC1.67
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 5Y12.55%
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 5Y7.54%
EBIT growth 1Y14.75%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year44.75%
EBIT Next 3Y18.7%
EBIT Next 5Y14.36%
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%