BME:GRF

Stock Analysis Report

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Market Cap

€12.5b

Last Updated

2021/08/02 17:40 UTC

Data Sources

Company Financials +

Executive Summary

Grifols, S.A. engages in the procurement, manufacture, preparation, and sale of therapeutic products primarily hemoderivatives. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRF is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

GRF

1.9%

ES Biotechs

-0.7%

ES Market


1 Year Return

-14.0%

GRF

-13.0%

ES Biotechs

22.7%

ES Market

Return vs Industry: GRF matched the Spanish Biotechs industry which returned -13% over the past year.

Return vs Market: GRF underperformed the Spanish Market which returned 22.7% over the past year.


Shareholder returns

GRFIndustryMarket
7 Day3.5%1.9%-0.7%
30 Day-4.0%-4.3%-2.9%
90 Day-4.5%-6.7%-2.6%
1 Year-12.4%-14.0%-11.6%-13.0%27.5%22.7%
3 Year-12.8%-15.8%-6.2%-9.3%1.5%-7.8%
5 Year17.6%10.7%57.5%52.1%23.4%4.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRF (€21.44) is trading above our estimate of fair value (€14.53)

Significantly Below Fair Value: GRF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRF is good value based on its PE Ratio (22.1x) compared to the European Biotechs industry average (27.3x).

PE vs Market: GRF is poor value based on its PE Ratio (22.1x) compared to the Spanish market (21x).


Price to Earnings Growth Ratio

PEG Ratio: GRF is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GRF is good value based on its PB Ratio (2.8x) compared to the ES Biotechs industry average (4.7x).


Future Growth

How is Grifols forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRF's forecast earnings growth (15.8% per year) is above the savings rate (1%).

Earnings vs Market: GRF's earnings (15.8% per year) are forecast to grow slower than the Spanish market (19.4% per year).

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

Revenue vs Market: GRF's revenue (7.1% per year) is forecast to grow faster than the Spanish market (6.5% per year).

High Growth Revenue: GRF's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRF's Return on Equity is forecast to be low in 3 years time (14.1%).


Past Performance

How has Grifols performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRF has high quality earnings.

Growing Profit Margin: GRF's current net profit margins (12.8%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: GRF's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: GRF's earnings growth over the past year (19.9%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: GRF earnings growth over the past year (19.9%) underperformed the Biotechs industry 24.8%.


Return on Equity

High ROE: GRF's Return on Equity (10.8%) is considered low.


Financial Health

How is Grifols's financial position?


Financial Position Analysis

Short Term Liabilities: GRF's short term assets (€3.2B) exceed its short term liabilities (€1.9B).

Long Term Liabilities: GRF's short term assets (€3.2B) do not cover its long term liabilities (€7.4B).


Debt to Equity History and Analysis

Debt Level: GRF's debt to equity ratio (98.3%) is considered high.

Reducing Debt: GRF's debt to equity ratio has reduced from 136.6% to 98.3% over the past 5 years.

Debt Coverage: GRF's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: GRF's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRF's dividend (1.68%) is higher than the bottom 25% of dividend payers in the Spanish market (1.45%).

High Dividend: GRF's dividend (1.68%) is low compared to the top 25% of dividend payers in the Spanish market (4.72%).


Stability and Growth of Payments

Stable Dividend: GRF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GRF's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.1%), GRF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRF's dividends in 3 years are forecast to be well covered by earnings (37.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.6yrs

Average management tenure


CEO

Raimon Grifols Roura (57 yo)

4.58yrs

Tenure

€1,171,000

Compensation

Mr. Raimon Grifols Roura has been the Co-Chief Executive Officer of Grifols, S.A. since January 1, 2017 and served as its Co-Chairman. Mr. Roura was a Patner at Osborne Clarke Spain. Mr. Roura serves as th...


CEO Compensation Analysis

Compensation vs Market: Raimon's total compensation ($USD1.39M) is below average for companies of similar size in the Spanish market ($USD3.29M).

Compensation vs Earnings: Raimon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GRF's management team is seasoned and experienced (13.6 years average tenure).


Board Members

Experienced Board: GRF's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Grifols, S.A.
  • Ticker: GRF
  • Exchange: BME
  • Founded: 1940
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €12.489b
  • Shares outstanding: 682.48m
  • Website: https://www.grifols.com

Number of Employees


Location

  • Grifols, S.A.
  • Avinguda de la Generalitat, 152
  • Parc empresarial Can Sant Joan
  • Barcelona
  • Catalonia
  • 8174
  • Spain

Listings


Biography

Grifols, S.A. engages in the procurement, manufacture, preparation, and sale of therapeutic products primarily hemoderivatives. The company operates through Bioscience, Hospital, Diagnostic, Bio Supplies, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 17:40
End of Day Share Price2021/08/02 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.