BME:ALM

Stock Analysis Report

Executive Summary

Almirall, S.A., a pharmaceutical company, engages in the research, development, manufacture, and sale of medicines worldwide.

Rewards

Trading at 36.8% below its fair value

Earnings are forecast to grow 17.77% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Has a high level of debt



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Moberg Pharma

OM:MOB

Share Price & News

How has Almirall's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

ALM

0.2%

ES Pharmaceuticals

0.5%

ES Market


1 Year Return

-6.1%

ALM

21.7%

ES Pharmaceuticals

5.7%

ES Market

Return vs Industry: ALM underperformed the Spanish Pharmaceuticals industry which returned 19.8% over the past year.

Return vs Market: ALM underperformed the Spanish Market which returned 8.5% over the past year.


Shareholder returns

ALMIndustryMarket
7 Day-3.3%0.2%0.5%
30 Day-2.3%2.3%-0.6%
90 Day-13.2%9.7%2.6%
1 Year-5.1%-6.1%28.6%21.7%9.5%5.7%
3 Year0.05%-3.3%45.7%29.0%12.9%2.0%
5 Year-0.5%-5.6%41.7%17.4%11.1%-7.4%

Price Volatility Vs. Market

How volatile is Almirall's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Almirall undervalued compared to its fair value and its price relative to the market?

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALM (€15.41) is trading below our estimate of fair value (€24.37)

Significantly Below Fair Value: ALM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALM is poor value based on its PE Ratio (31.6x) compared to the Pharmaceuticals industry average (23.8x).

PE vs Market: ALM is poor value based on its PE Ratio (31.6x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: ALM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ALM is good value based on its PB Ratio (2.1x) compared to the XE Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

How is Almirall forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALM's forecast earnings growth (17.8% per year) is above the savings rate (0.4%).

Earnings vs Market: ALM's earnings (17.8% per year) are forecast to grow faster than the Spanish market (9% per year).

High Growth Earnings: ALM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALM's revenue (8.2% per year) is forecast to grow faster than the Spanish market (3.4% per year).

High Growth Revenue: ALM's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALM's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Almirall performed over the past 5 years?

-46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALM has a high level of non-cash earnings.

Growing Profit Margin: ALM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ALM has become profitable over the past 5 years, growing earnings by -46.4% per year.

Accelerating Growth: ALM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-1.6%).


Return on Equity

High ROE: ALM's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Almirall's financial position?


Financial Position Analysis

Short Term Liabilities: ALM's short term assets (€517.0M) exceed its short term liabilities (€319.6M).

Long Term Liabilities: ALM's short term assets (€517.0M) do not cover its long term liabilities (€899.5M).


Debt to Equity History and Analysis

Debt Level: ALM's debt to equity ratio (40.7%) is considered high.

Reducing Debt: ALM's debt to equity ratio has increased from 33.4% to 40.7% over the past 5 years.

Debt Coverage: ALM's debt is well covered by operating cash flow (36.5%).

Interest Coverage: ALM's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet

Inventory Level: ALM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ALM's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Almirall's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.3%markettop25%5.5%industryaverage2.8%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: ALM's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (2.22%).

High Dividend: ALM's dividend (1.23%) is low compared to the top 25% of dividend payers in the Spanish market (5.51%).


Stability and Growth of Payments

Stable Dividend: ALM is not paying a notable dividend for the Spanish market, therefore no need to check if payments are stable.

Growing Dividend: ALM is not paying a notable dividend for the Spanish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALM is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALM's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

What is the CEO of Almirall's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average board tenure


CEO

Peter Guenter (57yo)

2.4yrs

Tenure

0

Mr. Peter Guenter has been Chairman of Management Board and Chief Executive Officer at Almirall, S.A. since August 28, 2017 and it Executive Director since October 10, 2017. Mr. Guenter served as an Execut ...


Board Age and Tenure

7.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ALM's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jorge Gallardo Ballart (63yo)

    Chairman & President

    • Compensation: €455.00k
  • Bhushan Hardas

    Chief Scientific Officer

    • Joan Figueras Carreras

      General Counsel

      • Peter Guenter (57yo)

        CEO, Chairman of Management Board & Executive Director

        • Tenure: 2.4yrs
      • Eloi Crespo Cervera

        VP of Manufacturing & Technical Services and Member of Management Board

        • Alfredo Barón de Juan

          Executive VP of Global Commercial Operations & Member of Management Board

          • Jordi Sabé Richer

            Senior VP of Corporate Development & Member of Management Board

            • Amita Kent

              Senior VP of Legal

              • Mike McClellan (48yo)

                Chief Financial Officer

                • Tenure: 0.2yrs
              • Esteve Conesa Panicot

                VP of Human Resources & Member of Management Board


                Board Members

                • Sidney Taurel (70yo)

                  Member of Global Advisory Board-Spain

                  • Tenure: 11yrs
                • Gerhard Mayr (73yo)

                  External Independent Director

                  • Tenure: 7.3yrs
                  • Compensation: €122.00k
                • Tom McKillop (76yo)

                  External Independent Director

                  • Tenure: 10.7yrs
                  • Compensation: €132.00k
                • Jorge Gallardo Ballart (63yo)

                  Chairman & President

                  • Compensation: €455.00k
                • Karin Louise Dorrepaal (58yo)

                  External Independent Director

                  • Tenure: 7yrs
                  • Compensation: €122.00k
                • José Juan Pintó Sala

                  Secretary & Non-Voting Director

                  • Joan Figueras Carreras

                    General Counsel

                    • Peter Guenter (57yo)

                      CEO, Chairman of Management Board & Executive Director

                      • Tenure: 2.4yrs
                    • Antonio Gallardo Torrededía

                      External Director

                      • Compensation: €50.00k
                    • Carlos Gallardo Piqué

                      External Director

                      • Compensation: €50.00k

                    Company Information

                    Almirall, S.A.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Almirall, S.A.
                    • Ticker: ALM
                    • Exchange: BME
                    • Founded: 1943
                    • Industry: Pharmaceuticals
                    • Sector: Pharmaceuticals & Biotech
                    • Market Cap: €2.540b
                    • Shares outstanding: 174.55m
                    • Website: https://www.almirall.com

                    Number of Employees


                    Location

                    • Almirall, S.A.
                    • Ronda General Mitre, 151
                    • Barcelona
                    • Catalonia
                    • 8022
                    • Spain

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    ALMBME (Bolsas y Mercados Espanoles)YesCommon StockESEURJun 2007
                    E2ZDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007
                    0O9BLSE (London Stock Exchange)YesCommon StockGBEURJun 2007
                    LBTS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2007
                    ALMEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2007
                    ALM NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2007

                    Biography

                    Almirall, S.A., a pharmaceutical company, engages in the research, development, manufacture, and sale of medicines worldwide. The company offers its products for dermatological diseases comprising actinic keratosis, atopic dermatitis, acne, rosacea, and psoriasis; and central nervous system, cardiovascular, and gastrointestinal diseases. Its strategic brands include ACTIKERALL, BALNEUM, DECODERM, SATIVEX, SKILARENCE, and DECODERM. Almirall, S.A. has a strategic research collaboration with Evotec AG to discover and develop first-in-class therapeutics in the field of dermatology diseases, as well as drug discovery partnership with X-Chem, Inc.; and a research collaboration with Iktos in the area of artificial intelligence for new drug design. The company was formerly known as Laboratorios Almirall, S.A. and changed its name to Almirall, S.A. in May 2009. Almirall, S.A. was founded in 1943 and is headquartered in Barcelona, Spain. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/23 21:21
                    End of Day Share Price2020/01/23 00:00
                    Earnings2019/09/30
                    Annual Earnings2018/12/31


                    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.