Almirall (BME:ALM): Reworked Debt Structure Prompts Fresh Look at Valuation After New 2031 Bond Issue

Almirall (BME:ALM) just reshaped its balance sheet, planning to redeem its €300 million 2.125% notes due 2026 while issuing €250 million in 3.75% senior unsecured notes maturing 2031, representing a meaningful capital structure refresh.

See our latest analysis for Almirall.

The new bond issue and planned redemption come as Almirall’s €12.84 share price rides strong momentum, with a 90 day share price return of 14.03% and a robust 1 year total shareholder return of 56.95% signaling that investors are rewarding both growth and cleaner financing.

If this kind of balance sheet reshaping interests you, it might be worth scanning other pharma stocks with solid dividends that combine income potential with solid healthcare fundamentals.

With earnings and cash flows improving and the new bond issue extending maturities, Almirall trades only modestly below analyst targets. This raises the real question: is this momentum stock still attractive, or is future growth already priced in?

Most Popular Narrative: 7.4% Undervalued

With Almirall closing at €12.84 against an implied fair value of about €13.86, the most followed narrative points to modest upside still on the table.

Analysts are assuming Almirall's revenue will grow by 10.5% annually over the next 3 years.

Analysts assume that profit margins will increase from 2.0% today to 10.2% in 3 years time.

Read the complete narrative.

Curious how a still early stage profit story can support that richer future earnings multiple, while keeping growth and margins marching higher for years to come?

Result: Fair Value of $13.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks remain, particularly around Ebglyss launch momentum and sustained U.S. weakness, which could quickly challenge today’s optimistic rerating narrative.

Find out about the key risks to this Almirall narrative.

Another View: Market Ratios Flash a Caution Sign

While the narrative and fair value work suggest upside, the market’s own yardstick tells a different story. Almirall trades on a 65.6x price to earnings ratio, roughly double both peers at 31.5x and its 32.2x fair ratio, implying little margin for disappointment.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Almirall Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a tailored view in just minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Almirall.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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