Recordati Industria Chimica e Farmaceutica S.p.A.
Recordati Industria Chimica e Farmaceutica S.p.A. Fundamental Analysis
Recordati Industria Chimica e Farmaceutica S.p.A. (RCDTF) shows strong financial fundamentals with a PE ratio of 20.80, profit margin of 17.79%, and ROE of 24.26%. The company generates $2.6B in annual revenue with strong year-over-year growth of 11.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RCDTF's fundamental strength across five key dimensions:
Efficiency Score
WeakRCDTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRCDTF trades at attractive valuation levels.
Growth Score
ModerateRCDTF shows steady but slowing expansion.
Financial Health Score
ModerateRCDTF shows balanced financial health with some risks.
Profitability Score
ExcellentRCDTF achieves industry-leading margins.
Key Financial Metrics
Is RCDTF Expensive or Cheap?
P/E Ratio
RCDTF trades at 20.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RCDTF's PEG of 1.82 indicates fair valuation.
Price to Book
The market values Recordati Industria Chimica e Farmaceutica S.p.A. at 4.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.39 times EBITDA. This is generally considered low.
How Well Does RCDTF Make Money?
Net Profit Margin
For every $100 in sales, Recordati Industria Chimica e Farmaceutica S.p.A. keeps $17.79 as profit after all expenses.
Operating Margin
Core operations generate 28.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.26 in profit for every $100 of shareholder equity.
ROA
Recordati Industria Chimica e Farmaceutica S.p.A. generates $8.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Recordati Industria Chimica e Farmaceutica S.p.A. produces operating cash flow of $533.77M, showing steady but balanced cash generation.
Free Cash Flow
Recordati Industria Chimica e Farmaceutica S.p.A. generates strong free cash flow of $446.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.19 in free cash annually.
FCF Yield
RCDTF converts 4.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How RCDTF Stacks Against Its Sector Peers
| Metric | RCDTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.80 | 28.65 | Better (Cheaper) |
| ROE | 24.26% | 795.00% | Weak |
| Net Margin | 17.79% | -49787.00% (disorted) | Strong |
| Debt/Equity | 1.15 | 0.40 | Weak (High Leverage) |
| Current Ratio | 1.26 | 3.73 | Neutral |
| ROA | 8.82% | -20255.00% (disorted) | Weak |
RCDTF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Recordati Industria Chimica e Farmaceutica S.p.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.96%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
25.14%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
48.10%
Industry Style: Defensive, Growth, Innovation
High Growth