RECORDATI INDUSTRIA CHIMICA (REC.MI) Stock Fundamental Analysis
Europe - BIT:REC - IT0003828271 - Common Stock
51.75 EUR
+0.45 (+0.88%)
Taking everything into account, REC scores 4 out of 10 in our fundamental rating. REC was compared to 53 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
In the past year REC was profitable.
In the past year REC had a positive cash flow from operations.
REC had positive earnings in each of the past 5 years.
In the past 5 years REC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of REC (7.87%) is better than 62.26% of its industry peers.
With a decent Return On Equity value of 21.77%, REC is doing good in the industry, outperforming 67.92% of the companies in the same industry.
With a Return On Invested Capital value of 12.31%, REC perfoms like the industry average, outperforming 58.49% 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 15.19%.
| 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
Looking at the Profit Margin, with a value of 16.42%, REC is in the better half of the industry, outperforming 64.15% 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 71.70% of the companies in the same industry.
REC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.79%, REC is in line with its industry, outperforming 43.40% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REC is creating some value.
The number of shares outstanding for REC remains at a similar level compared to 1 year ago.
The number of shares outstanding for REC has been increased compared to 5 years ago.
Compared to 1 year ago, REC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that REC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.58, REC is in line with its industry, outperforming 47.17% of the companies in the same industry.
REC has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, REC is not doing good in the industry: 73.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.58 |
ROIC/WACC1.64
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.47 indicates that REC should not have too much problems paying its short term obligations.
The Current ratio of REC (1.47) is better than 66.04% of its industry peers.
A Quick Ratio of 1.01 indicates that REC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.01, REC is doing good in the industry, outperforming 60.38% of the companies in the same industry.
| 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.
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 12.68% on average per year.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y6.48%
EPS Next 2Y10.95%
EPS Next 3Y10.55%
EPS Next 5Y12.68%
Revenue Next Year13.6%
Revenue Next 2Y10.14%
Revenue Next 3Y8.87%
Revenue Next 5Y8.07%
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 26.27, the valuation of REC can be described as expensive.
REC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.83, REC is valued at the same level.
A Price/Forward Earnings ratio of 17.09 indicates a rather expensive valuation of REC.
REC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.82. REC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 17.09 |
4.2 Price Multiples
REC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15 |
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.
PEG (NY)4.06
PEG (5Y)9.6
EPS Next 2Y10.95%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 2.43%. 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 3.00.
Compared to an average S&P500 Dividend Yield of 2.34, REC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 2Y10.95%
EPS Next 3Y10.55%
BIT:REC (10/24/2025, 5:35:30 PM)
51.75
+0.45 (+0.88%)
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 Cap10.82B
Revenue(TTM)2.48B
Net Income(TTM)407.26M
Analysts74.67
Price Target60.43 (16.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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%
PT rev (3m)0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.79%
EPS NY rev (3m)-7.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 17.09 | ||
| P/S | 4.36 | ||
| P/FCF | N/A | ||
| P/OCF | 18.82 | ||
| P/B | 5.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15 |
EPS(TTM)1.97
EY3.81%
EPS(NY)3.03
Fwd EY5.85%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)2.75
OCFY5.31%
SpS11.86
BVpS8.94
TBVpS-6.58
PEG (NY)4.06
PEG (5Y)9.6
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 | 3.58 |
F-Score6
WACC7.52%
ROIC/WACC1.64
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 Y6.48%
EPS Next 2Y10.95%
EPS Next 3Y10.55%
EPS Next 5Y12.68%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y14.01%
Revenue growth 5Y9.58%
Sales Q2Q%11.43%
Revenue Next Year13.6%
Revenue Next 2Y10.14%
Revenue Next 3Y8.87%
Revenue Next 5Y8.07%
EBIT growth 1Y11.3%
EBIT growth 3Y9.43%
EBIT growth 5Y7.27%
EBIT Next Year45.73%
EBIT Next 3Y19.05%
EBIT Next 5Y14.53%
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 26.27 and the Price/Book (PB) ratio is 5.79.
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 6.48% in the next year.