BME:RJF

Stock Analysis Report

Executive Summary

Laboratorio Reig Jofre, S.A., a pharmaceutical company, engages in the research, development, manufacture, and marketing of pharmaceutical products and nutritional supplements.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Laboratorio Reig Jofre's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RJF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

RJF

8.0%

ES Pharmaceuticals

1.6%

ES Market


1 Year Return

-19.7%

RJF

1.0%

ES Pharmaceuticals

-25.3%

ES Market

Return vs Industry: RJF underperformed the Spanish Pharmaceuticals industry which returned 1% over the past year.

Return vs Market: RJF exceeded the Spanish Market which returned -25.3% over the past year.


Shareholder returns

RJFIndustryMarket
7 Day1.5%8.0%1.6%
30 Day-13.0%-2.1%-20.6%
90 Day-20.6%-7.7%-26.8%
1 Year-18.5%-19.7%6.8%1.0%-22.6%-25.3%
3 Year-40.4%-42.7%19.5%5.9%-24.9%-31.9%
5 Year-65.5%-66.9%13.3%-6.0%-27.9%-39.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Laboratorio Reig Jofre undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RJF (€2) is trading below our estimate of fair value (€8.04)

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


Price To Earnings Ratio

PE vs Industry: RJF is poor value based on its PE Ratio (28.8x) compared to the Pharmaceuticals industry average (20.1x).

PE vs Market: RJF is poor value based on its PE Ratio (28.8x) compared to the Spanish market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: RJF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: RJF is good value based on its PB Ratio (0.8x) compared to the XE Pharmaceuticals industry average (2.5x).


Next Steps

Future Growth

How is Laboratorio Reig Jofre forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RJF's forecast earnings growth (25.3% per year) is above the savings rate (0.4%).

Earnings vs Market: RJF's earnings (25.3% per year) are forecast to grow faster than the Spanish market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RJF's revenue (6.4% per year) is forecast to grow faster than the Spanish market (4.2% per year).

High Growth Revenue: RJF's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RJF's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Laboratorio Reig Jofre performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RJF has a large one-off loss of €2.5M impacting its December 31 2019 financial results.

Growing Profit Margin: RJF's current net profit margins (2.4%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: RJF's earnings have grown by 3.2% per year over the past 5 years.

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

Earnings vs Industry: RJF had negative earnings growth (-46.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (1.9%).


Return on Equity

High ROE: RJF's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Laboratorio Reig Jofre's financial position?


Financial Position Analysis

Short Term Liabilities: RJF's short term assets (€96.4M) exceed its short term liabilities (€68.6M).

Long Term Liabilities: RJF's short term assets (€96.4M) exceed its long term liabilities (€66.9M).


Debt to Equity History and Analysis

Debt Level: RJF's debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: RJF's debt to equity ratio has reduced from 13.9% to 8.7% over the past 5 years.

Debt Coverage: RJF's debt is well covered by operating cash flow (75.8%).

Interest Coverage: RJF's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: RJF's debt is covered by short term assets (assets are 6.3x debt).


Next Steps

Dividend

What is Laboratorio Reig Jofre's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RJF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RJF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RJF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RJF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RJF'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?

5.3yrs

Average board tenure


CEO

Ignasi Biosca Reig

5.17s

Tenure

€445,000

Compensation

Mr. Ignasi Biosca Reig has been Chief Executive Officer of Laboratorio Reig Jofre, S.A. since January 13, 2015. Mr. Reig served as Chief Executive Officer of Reig Jofre since 2006. He served as Consultant  ...


CEO Compensation Analysis

Compensation vs Market: Ignasi's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD619.49K).

Compensation vs Earnings: Insufficient data to compare Ignasi's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Ignasi Biosca Reig
CEO & Executive Director5.17yrs€445.00kno data
Alejandro García Reig
VP of Board & Finance Manager1.17yrs€40.00kno data
Antonio Costas Comesaña
Independent Director5.25yrs€40.00kno data
Maria Luisa Francoli Plaza
Independent Director5.25yrs€40.00k0.010% 14.8k
Isabel Reig López
Proprietary Chairman of the Boardno datano datano data
Ramon Gomis i de Barbara
Independent Director5.25yrs€36.00kno data
Ramiro Martínez-Pardo del Valle
Independent Director5.25yrs€40.00kno data
Emilio Moraleda Martinez
Independent Director5.25yrs€40.00kno data

5.3yrs

Average Tenure

Experienced Board: RJF's board of directors are considered experienced (5.3 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 been diluted in the past year, with total shares outstanding growing by 8.3%.


Top Shareholders

Company Information

Laboratorio Reig Jofre, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laboratorio Reig Jofre, S.A.
  • Ticker: RJF
  • Exchange: BME
  • Founded: 1929
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €147.561m
  • Shares outstanding: 75.67m
  • Website: https://www.reigjofre.com

Number of Employees


Location

  • Laboratorio Reig Jofre, S.A.
  • Av. de les Flors
  • Sant Joan Despí
  • Barcelona
  • Catalonia
  • 8970
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RJFBME (Bolsas y Mercados Espanoles)EUR2ESEURNo data
RJFBME (Bolsas y Mercados Espanoles)YesCommon SharesESEURJan 2015
FEQ1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2015
0RB1LSE (London Stock Exchange)YesCommon SharesGBEURJan 2015
RJFEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 2015

Biography

Laboratorio Reig Jofre, S.A., a pharmaceutical company, engages in the research, development, manufacture, and marketing of pharmaceutical products and nutritional supplements. The company offers prescription medicines, OTCs, medical devices, and cosmetics. Its products include technological-specialization products, such as antibiotics, and injectable and other products; therapeutic-specialization products in the areas of dermatology, respiratory/ENT, gynecology, and pediatrics; and food supplements under the Forté Pharma brand. The company also offers research, development, and manufacturing services for pharmaceutical and biotechnology companies, and pharmaceutical manufacturers and distributors, as well as regulatory services; and licenses dossiers. It sells its products directly in 7 countries and through commercial partners in approximately 65 countries on 5 continents. Laboratorio Reig Jofre, S.A. was founded in 1929 and is based in Barcelona, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 20:55
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.