BME:GRF

Stock Analysis Report

Executive Summary

Grifols, S.A. develops, manufactures, and distributes a range of biological medicines on plasma derived proteins worldwide.


Snowflake Analysis

Moderate growth potential 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

GRF

-0.8%

ES Biotechs

-4.9%

ES Market


1 Year Return

42.6%

GRF

41.2%

ES Biotechs

3.5%

ES Market

Return vs Industry: GRF underperformed the Spanish Biotechs industry which returned 45.7% over the past year.

Return vs Market: GRF exceeded the Spanish Market which returned 7.7% over the past year.


Shareholder returns

GRFIndustryMarket
7 Day-0.7%-0.8%-4.9%
30 Day5.5%5.2%-1.2%
90 Day6.1%6.1%1.5%
1 Year44.1%42.6%42.6%41.2%7.1%3.5%
3 Year63.5%58.2%38.0%35.7%12.9%2.2%
5 Year95.1%83.7%69.2%69.1%4.8%-12.6%

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?

40.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRF (€32.88) is trading above our estimate of fair value (€17.02)

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


Price To Earnings Ratio

PE vs Industry: GRF is poor value based on its PE Ratio (41x) compared to the Biotechs industry average (39.8x).

PE vs Market: GRF is poor value based on its PE Ratio (41x) compared to the Spanish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: GRF is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: GRF is overvalued based on its PB Ratio (4.7x) compared to the ES Biotechs industry average (4x).


Next Steps

Future Growth

How is Grifols forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRF's forecast earnings growth (13.9% per year) is above the savings rate (0.4%).

Earnings vs Market: GRF's earnings (13.9% per year) are forecast to grow faster than the Spanish market (11.5% per year).

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

Revenue vs Market: GRF's revenue (6.5% per year) is forecast to grow faster than the Spanish market (4.7% per year).

High Growth Revenue: GRF's revenue (6.5% 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 (17.1%).


Next Steps

Past Performance

How has Grifols performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRF has high quality earnings.

Growing Profit Margin: GRF's current net profit margins (11.1%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: GRF's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: GRF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GRF had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Biotechs industry average (-4.7%).


Return on Equity

High ROE: GRF's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Grifols's financial position?


Financial Position Analysis

Short Term Liabilities: GRF's short term assets (€3.7B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: GRF's short term assets (€3.7B) do not cover its long term liabilities (€7.4B).


Debt to Equity History and Analysis

Debt Level: GRF's debt to equity ratio (125.4%) is considered high.

Reducing Debt: GRF's debt to equity ratio has reduced from 162.9% to 125.4% over the past 5 years.

Debt Coverage: GRF's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: GRF's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: GRF has a high level of physical assets or inventory.

Debt Coverage by Assets: GRF's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRF's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (2.29%).

High Dividend: GRF's dividend (1.05%) is low compared to the top 25% of dividend payers in the Spanish market (5.36%).


Stability and Growth of Payments

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

Growing Dividend: GRF 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: GRF is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

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


Next Steps

Management

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

12.1yrs

Average management tenure


CEO

Raimon Grifols Roura (55yo)

3.1yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Raimon Grifols Roura
Co-CEO & Executive Director3.1yrsno data0.00041% 81.6k
Tomás Dagá Gelabert
Vice Secretary & External Director19.8yrsno data0.015% 3.0m
Víctor Grífols Deu
Co-CEO & Executive Director3.8yrsno data0.0021% 425.7k
Alfredo Arroyo Guerra
CFO & VP13.1yrsno datano data
Eva Bastida Tubau
Corporate Vice President and Director of Scientific & Medical Affairs13.1yrsno datano data
Nuria Pascual Lapeña
Vice President of Corporate Treasury & Investor Relations0yrsno data0.0029% 569.0k
David Bell
General Counsel & Chief Innovation Officer17.1yrsno data0.0029% 580.9k
Maria Teresa-Rioné Llano
Vice President of Corporate Communications2.1yrsno data0.00010% 19.9k
Mateo Florencio Borrás Humbert
Corporate VP & Chief Human Resources Officer12.1yrsno data0.00014% 27.9k
Francisco Javier Jorba Ribes
Corporate Vice President and President of the Biological Industrial Group25.1yrsno datano data

12.1yrs

Average Tenure

61yo

Average Age

Experienced Management: GRF's management team is seasoned and experienced (12.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raimon Grifols Roura
Co-CEO & Executive Director3.1yrsno data0.00041% 81.6k
Tomás Dagá Gelabert
Vice Secretary & External Director19.8yrsno data0.015% 3.0m
Víctor Grífols Deu
Co-CEO & Executive Director3.8yrsno data0.0021% 425.7k
Thomas Glanzmann
Non-Executive Vice-Chairman3.1yrs€845.00k0.0054% 1.1m
Víctor Grífols Roura
Non-Executive Chairman17.8yrs€1.24m0.13% 25.6m
Juan Ignacio Twose Roura
Member of the Advisory Committee5.1yrs€380.00kno data
Ramón Riera Roca
Other External Director19.8yrs€913.00k0.049% 9.8m
Marla Salmon
Independent Director5.8yrs€125.00kno data
Iñigo Sánchez-Asiaín Mardones
Lead Independent Director3.1yrs€75.00kno data
Carina Szpilka Lázaro
Independent Director4.8yrs€63.00k0.00022% 43.8k

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: GRF's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

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: €19.894b
  • Shares outstanding: 684.14m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRFBME (Bolsas y Mercados Espanoles)YesClass A SharesESEURMay 2006
OZTADB (Deutsche Boerse AG)YesClass A SharesDEEURMay 2006
0RDULSE (London Stock Exchange)YesClass A SharesGBEURMay 2006
GIFL.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDMay 2006
GRFEBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURMay 2006
GRFWBAG (Wiener Boerse AG)YesClass A SharesATEURMay 2006
OZTAETLX (Eurotlx)YesClass A SharesITEURMay 2006
GIKL.YOTCPK (Pink Sheets LLC)SPONS ADRUSUSDJul 2009
GRFSNasdaqGS (Nasdaq Global Select)SPON ADR EA REPR 1 ORD EUR0.10USUSDJun 2011
GRF.PBME (Bolsas y Mercados Espanoles)Class B Non-Voting SharesESEURJun 2011
0RDVLSE (London Stock Exchange)Class B Non-Voting SharesGBEURJun 2011
G0FBDB (Deutsche Boerse AG)SPON ADR EA REPR 1 ORD EUR0.10DEEURJun 2011
GRFPEBATS-CHIXE (BATS 'Chi-X Europe')Class B Non-Voting SharesGBEURJun 2011
GIFO.FOTCPK (Pink Sheets LLC)Class B Non-Voting SharesUSUSDJun 2011
GRFP NBMV (Bolsa Mexicana de Valores)Class B Non-Voting SharesMXMXNJun 2011

Biography

Grifols, S.A. develops, manufactures, and distributes a range of biological medicines on plasma derived proteins worldwide. The company operates through five segments: Bioscience, Diagnostic, Hospital, Bio Supplies, and Others. The Bioscience segment manufactures plasma derivatives for therapeutic use; and sells and distributes end products. It offers plasma products, such as intravenous immune globulin, Factor VIII, alpha-1 proteinase inhibitor, and albumin; and intramuscular immunoglobulins, antithrombin III, Factor IX, and plasma thromboplastin components. The Diagnostic segment focuses on researching, developing, manufacturing, and marketing in vitro diagnostics products, including analytical instruments, reagents, software, and related products for use in clinical and blood bank laboratories. It serves blood donation centers, clinical analysis laboratories, and hospital immunohematology services. The Hospital segment offers products used by hospitals, as well as parenteral solutions and enteral nutritional fluids. The Bio Supplies segment provides biological products for non-therapeutic uses. The Others segment renders manufacturing services to third party companies. The company also provides infusion solutions, nutrition products, and medical devices for use in hospitals and clinics; and engineering services. Its products and services are used by healthcare providers to diagnose and treat patients with hemophilia, immune deficiencies, infectious diseases, and other medical conditions. The company serves hospitals and clinics, group purchasing organizations, governments, and other distributors through sales representatives, marketing partners, and third-party distributors. Grifols, S.A. has a technology collaboration agreement with Mondragon to jointly develop healthcare sector-related automation, robotics, and instrumentation, as well as other technologies and infrastructure. The company was founded in 1940 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 Analysis2020/02/24 20:33
End of Day Share Price2020/02/24 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.