RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:REC - IT0003828271 - Common Stock
49.66 EUR
+0.88 (+1.8%)
Overall REC gets a fundamental rating of 4 out of 10. We evaluated REC against 54 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. 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.
In the past 5 years REC has always been profitable.
REC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.87%, REC is doing good in the industry, outperforming 61.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.77%, REC is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
REC's Return On Invested Capital of 12.31% is fine compared to the rest of the industry. REC outperforms 62.96% of its industry peers.
REC had an Average Return On Invested Capital over the past 3 years of 12.56%. This is in line with the industry average of 13.89%.
| 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 66.67% of the companies in the same industry.
REC's Profit Margin has declined in the last couple of years.
REC's Operating Margin of 26.76% is fine compared to the rest of the industry. REC outperforms 72.22% of its industry peers.
In the last couple of years the Operating Margin of REC has declined.
The Gross Margin of REC (67.79%) is comparable to the rest of the industry.
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 | 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
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.
The debt/assets ratio for REC is higher compared to a year ago.
2.2 Solvency
REC has an Altman-Z score of 3.49. This indicates that REC is financially healthy and has little risk of bankruptcy at the moment.
REC has a Altman-Z score of 3.49. This is comparable to the rest of the industry: REC outperforms 51.85% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that REC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.16, REC is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.49 |
ROIC/WACC1.7
WACC7.23%
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 of 1.47. This is comparable to the rest of the industry: REC outperforms 57.41% of its industry peers.
REC has a Quick Ratio of 1.01. This is a normal value and indicates that REC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, REC is in line with its industry, outperforming 53.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
REC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.75%, which is quite good.
The Earnings Per Share has been growing slightly by 2.74% on average over the past years.
Looking at the last year, REC shows a quite strong growth in Revenue. The Revenue has grown by 11.51% in the last year.
REC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.58% yearly.
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
Based on estimates for the next years, REC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.89% on average per year.
The Revenue is expected to grow by 8.49% on average over the next years. This is quite good.
EPS Next Y2.94%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
EPS Next 5Y12.89%
Revenue Next Year12.87%
Revenue Next 2Y9.79%
Revenue Next 3Y8.79%
Revenue Next 5Y8.49%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.21, the valuation of REC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of REC is on the same level as its industry peers.
REC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.90 indicates a correct valuation of REC.
REC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, REC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 16.9 |
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 | 14.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.58
PEG (5Y)9.22
EPS Next 2Y9.29%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.60%.
REC's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.31, REC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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
64.48% 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.
DP64.48%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
BIT:REC (12/8/2025, 2:04:11 PM)
49.66
+0.88 (+1.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners30.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.39B
Revenue(TTM)2.48B
Net Income(TTM)407.26M
Analysts74.67
Price Target61.06 (22.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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)1.2%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.29%
EPS NY rev (3m)-8.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 16.9 | ||
| P/S | 4.19 | ||
| P/FCF | N/A | ||
| P/OCF | 18.06 | ||
| P/B | 5.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)1.97
EY3.97%
EPS(NY)2.94
Fwd EY5.92%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.54%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)8.58
PEG (5Y)9.22
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 | 3.49 |
F-Score6
WACC7.23%
ROIC/WACC1.7
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 Y2.94%
EPS Next 2Y9.29%
EPS Next 3Y10.14%
EPS Next 5Y12.89%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year12.87%
Revenue Next 2Y9.79%
Revenue Next 3Y8.79%
Revenue Next 5Y8.49%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year44.51%
EBIT Next 3Y18.7%
EBIT Next 5Y15.08%
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 5 / 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 25.21 and the Price/Book (PB) ratio is 5.55.
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 2.94% in the next year.