RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - BIT:REC - IT0003828271 - Common Stock
52.8 EUR
+0.7 (+1.34%)
Overall REC gets a fundamental rating of 4 out of 10. We evaluated REC against 54 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 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.
REC had a positive operating cash flow in the past year.
Each year in the past 5 years REC has been profitable.
Each year in the past 5 years REC had a positive operating cash flow.
1.2 Ratios
REC has a better Return On Assets (7.87%) than 61.11% of its industry peers.
REC's Return On Equity of 21.77% is fine compared to the rest of the industry. REC outperforms 68.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.31%, REC is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REC is in line with the industry average of 14.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 21.77% | ||
| ROIC | 12.31% |
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
With a decent Profit Margin value of 16.42%, REC is doing good in the industry, outperforming 68.52% of the companies in the same industry.
REC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.76%, REC is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
In the last couple of years the Operating Margin of REC has declined.
With a Gross Margin value of 67.79%, REC perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
REC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.76% | ||
| PM (TTM) | 16.42% | ||
| GM | 67.79% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REC is still creating some value.
The number of shares outstanding for REC remains at a similar level compared to 1 year ago.
REC has more shares outstanding than it did 5 years ago.
REC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.64 indicates that REC is not in any danger for bankruptcy at the moment.
REC has a Altman-Z score (3.64) which is in line with its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that REC has dependencies on debt financing.
The Debt to Equity ratio of REC (1.16) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.64 |
ROIC/WACC1.65
WACC7.46%
2.3 Liquidity
REC has a Current Ratio of 1.47. 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 (1.47) which is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that REC should not have too much problems paying its short term obligations.
REC has a Quick ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.75% 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.
The Revenue has grown by 11.51% in the past year. This is quite good.
The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)10.75%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-10.39%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
3.2 Future
The Earnings Per Share is expected to grow by 13.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y7.55%
EPS Next 2Y11.57%
EPS Next 3Y10.91%
EPS Next 5Y13.11%
Revenue Next Year13.26%
Revenue Next 2Y9.97%
Revenue Next 3Y8.76%
Revenue Next 5Y8.44%
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 26.80, which means the current valuation is very expensive for REC.
Compared to the rest of the industry, the Price/Earnings ratio of REC is on the same level as its industry peers.
REC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
REC is valuated rather expensively with a Price/Forward Earnings ratio of 17.25.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. REC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REC does not grow enough to justify the current Price/Earnings ratio.
REC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.55
PEG (5Y)9.8
EPS Next 2Y11.57%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
REC's Dividend Yield is a higher than the industry average which is at 3.01.
REC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
REC pays out 64.48% of its income as dividend. This is not a sustainable payout ratio.
REC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.48%
EPS Next 2Y11.57%
EPS Next 3Y10.91%
BIT:REC (11/14/2025, 7:00:00 PM)
52.8
+0.7 (+1.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners29.06%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.04B
Revenue(TTM)2.48B
Net Income(TTM)407.26M
Analysts74.67
Price Target60.34 (14.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend1.23
Dividend Growth(5Y)5.7%
DP64.48%
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)-0.15%
PT rev (3m)0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.01%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 17.25 | ||
| P/S | 4.45 | ||
| P/FCF | N/A | ||
| P/OCF | 19.21 | ||
| P/B | 5.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.37 |
EPS(TTM)1.97
EY3.73%
EPS(NY)3.06
Fwd EY5.8%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.21%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)3.55
PEG (5Y)9.8
Graham Number19.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 21.77% | ||
| ROCE | 16.15% | ||
| ROIC | 12.31% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 85.95% | ||
| OM | 26.76% | ||
| PM (TTM) | 16.42% | ||
| GM | 67.79% | ||
| 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%
ROICexgc growth 3Y-16.79%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 464.32% | ||
| Cap/Sales | 35.24% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 67.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.64 |
F-Score6
WACC7.46%
ROIC/WACC1.65
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)10.75%
EPS 3Y3.03%
EPS 5Y2.74%
EPS Q2Q%-10.39%
EPS Next Y7.55%
EPS Next 2Y11.57%
EPS Next 3Y10.91%
EPS Next 5Y13.11%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year13.26%
Revenue Next 2Y9.97%
Revenue Next 3Y8.76%
Revenue Next 5Y8.44%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year45.73%
EBIT Next 3Y19.05%
EBIT Next 5Y14.92%
FCF growth 1Y-168.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.39%
OCF growth 3Y5.01%
OCF growth 5Y12.33%
RECORDATI INDUSTRIA CHIMICA / REC.MI FAQ
What is the ChartMill fundamental rating of RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to REC.MI.
What is the valuation status for REC stock?
ChartMill assigns a valuation rating of 2 / 10 to RECORDATI INDUSTRIA CHIMICA (REC.MI). This can be considered as Overvalued.
How profitable is RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
RECORDATI INDUSTRIA CHIMICA (REC.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of RECORDATI INDUSTRIA CHIMICA (REC.MI) stock?
The Price/Earnings (PE) ratio for RECORDATI INDUSTRIA CHIMICA (REC.MI) is 26.8 and the Price/Book (PB) ratio is 5.9.
What is the earnings growth outlook for RECORDATI INDUSTRIA CHIMICA?
The Earnings per Share (EPS) of RECORDATI INDUSTRIA CHIMICA (REC.MI) is expected to grow by 7.55% in the next year.