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RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis

BIT:REC - Euronext Milan - IT0003828271 - Common Stock - Currency: EUR

53.15  +0.45 (+0.85%)

Fundamental Rating

4

Overall REC gets a fundamental rating of 4 out of 10. We evaluated REC against 50 industry peers in the Pharmaceuticals industry. While REC is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, REC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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6

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.
In the past 5 years REC has always been profitable.
REC had a positive operating cash flow in each of the past 5 years.
REC.MI Yearly Net Income VS EBIT VS OCF VS FCFREC.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

REC has a better Return On Assets (8.11%) than 70.00% of its industry peers.
With a decent Return On Equity value of 22.19%, REC is doing good in the industry, outperforming 74.00% of the companies in the same industry.
REC has a Return On Invested Capital of 12.15%. This is in the better half of the industry: REC outperforms 64.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REC is below the industry average of 15.13%.
Industry RankSector Rank
ROA 8.11%
ROE 22.19%
ROIC 12.15%
ROA(3y)8.39%
ROA(5y)10.39%
ROE(3y)21.82%
ROE(5y)24.25%
ROIC(3y)12.56%
ROIC(5y)14.53%
REC.MI Yearly ROA, ROE, ROICREC.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

REC has a Profit Margin of 17.79%. This is in the better half of the industry: REC outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of REC has declined.
REC has a better Operating Margin (28.24%) than 84.00% of its industry peers.
REC's Operating Margin has declined in the last couple of years.
The Gross Margin of REC (68.34%) is comparable to the rest of the industry.
REC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.24%
PM (TTM) 17.79%
GM 68.34%
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%
REC.MI Yearly Profit, Operating, Gross MarginsREC.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

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.
Compared to 5 years ago, REC has more shares outstanding
Compared to 1 year ago, REC has a worse debt to assets ratio.
REC.MI Yearly Shares OutstandingREC.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
REC.MI Yearly Total Debt VS Total AssetsREC.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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 better Altman-Z score (3.64) than 62.00% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that REC has dependencies on debt financing.
REC's Debt to Equity ratio of 1.17 is on the low side compared to the rest of the industry. REC is outperformed by 68.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF N/A
Altman-Z 3.64
ROIC/WACC1.6
WACC7.61%
REC.MI Yearly LT Debt VS Equity VS FCFREC.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 1.61 indicates that REC should not have too much problems paying its short term obligations.
REC has a Current ratio of 1.61. This is in the better half of the industry: REC outperforms 62.00% of its industry peers.
REC has a Quick Ratio of 1.06. This is a normal value and indicates that REC is financially healthy and should not expect problems in meeting its short term obligations.
REC's Quick ratio of 1.06 is in line compared to the rest of the industry. REC outperforms 56.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.06
REC.MI Yearly Current Assets VS Current LiabilitesREC.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

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5

3. Growth

3.1 Past

The earnings per share for REC have decreased strongly by -19.33% in the last year.
REC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.50% yearly.
REC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.45%.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)-19.33%
EPS 3Y-5.76%
EPS 5Y1.5%
EPS Q2Q%-7%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y7.74%
Revenue growth 5Y7.55%
Sales Q2Q%13.76%

3.2 Future

REC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.51% yearly.
Based on estimates for the next years, REC will show a quite strong growth in Revenue. The Revenue will grow by 9.65% on average per year.
EPS Next Y45.04%
EPS Next 2Y28.48%
EPS Next 3Y23.81%
EPS Next 5Y17.51%
Revenue Next Year12.28%
Revenue Next 2Y11.92%
Revenue Next 3Y12.71%
Revenue Next 5Y9.65%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
REC.MI Yearly Revenue VS EstimatesREC.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B
REC.MI Yearly EPS VS EstimatesREC.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.67, REC can be considered very expensive at the moment.
REC's Price/Earnings is on the same level as the industry average.
REC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.10.
A Price/Forward Earnings ratio of 21.61 indicates a rather expensive valuation of REC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of REC to the average of the S&P500 Index (20.74), we can say REC is valued inline with the index average.
Industry RankSector Rank
PE 35.67
Fwd PE 21.61
REC.MI Price Earnings VS Forward Price EarningsREC.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF N/A
EV/EBITDA 15.89
REC.MI Per share dataREC.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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.
REC has a very decent profitability rating, which may justify a higher PE ratio.
REC's earnings are expected to grow with 23.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)23.76
EPS Next 2Y28.48%
EPS Next 3Y23.81%

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4

5. Dividend

5.1 Amount

REC has a Yearly Dividend Yield of 2.45%. 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 3.06.
REC's Dividend Yield is comparable with the S&P500 average which is at 2.43.
Industry RankSector Rank
Dividend Yield 2.45%

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 60.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of REC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.92%
EPS Next 2Y28.48%
EPS Next 3Y23.81%
REC.MI Yearly Income VS Free CF VS DividendREC.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M
REC.MI Dividend Payout.REC.MI Dividend Payout, showing the Payout Ratio.REC.MI Dividend Payout.PayoutRetained Earnings

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RECORDATI INDUSTRIA CHIMICA

BIT:REC (5/5/2025, 7:00:00 PM)

53.15

+0.45 (+0.85%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-13 2025-02-13/dmh
Earnings (Next)05-08 2025-05-08
Inst Owners27.41%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.12B
Analysts70.67
Price Target58.18 (9.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.45%
Yearly Dividend1.23
Dividend Growth(5Y)5.7%
DP60.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.38%
Min EPS beat(2)-21.63%
Max EPS beat(2)0.88%
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)-0.82%
Min Revenue beat(2)-3.03%
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)-0.7%
PT rev (3m)4.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.97%
EPS NY rev (3m)-4.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)2.25%
Valuation
Industry RankSector Rank
PE 35.67
Fwd PE 21.61
P/S 4.75
P/FCF N/A
P/OCF 19.5
P/B 5.92
P/tB N/A
EV/EBITDA 15.89
EPS(TTM)1.49
EY2.8%
EPS(NY)2.46
Fwd EY4.63%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)2.73
OCFY5.13%
SpS11.2
BVpS8.97
TBVpS-6.85
PEG (NY)0.79
PEG (5Y)23.76
Profitability
Industry RankSector Rank
ROA 8.11%
ROE 22.19%
ROCE 15.72%
ROIC 12.15%
ROICexc 13.15%
ROICexgc 86.26%
OM 28.24%
PM (TTM) 17.79%
GM 68.34%
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 Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF N/A
Debt/EBITDA 2.65
Cap/Depr 509.6%
Cap/Sales 36.35%
Interest Coverage 8.32
Cash Conversion 68.81%
Profit Quality N/A
Current Ratio 1.61
Quick Ratio 1.06
Altman-Z 3.64
F-Score6
WACC7.61%
ROIC/WACC1.6
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)-19.33%
EPS 3Y-5.76%
EPS 5Y1.5%
EPS Q2Q%-7%
EPS Next Y45.04%
EPS Next 2Y28.48%
EPS Next 3Y23.81%
EPS Next 5Y17.51%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y7.74%
Revenue growth 5Y7.55%
Sales Q2Q%13.76%
Revenue Next Year12.28%
Revenue Next 2Y11.92%
Revenue Next 3Y12.71%
Revenue Next 5Y9.65%
EBIT growth 1Y16.41%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year46.16%
EBIT Next 3Y17.8%
EBIT Next 5Y11.76%
FCF growth 1Y-375.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.43%
OCF growth 3Y5.01%
OCF growth 5Y12.33%