BIT:REC

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Recordati Industria Chimica e Farmaceutica

Executive Summary

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, marketing, and sale of pharmaceuticals worldwide. More Details


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Recordati Industria Chimica e Farmaceutica's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REC is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

2.0%

REC

1.9%

IT Pharmaceuticals

-2.2%

IT Market


1 Year Return

11.4%

REC

-5.1%

IT Pharmaceuticals

-11.1%

IT Market

Return vs Industry: REC exceeded the Italian Pharmaceuticals industry which returned -5.2% over the past year.

Return vs Market: REC exceeded the Italian Market which returned -11.1% over the past year.


Shareholder returns

RECIndustryMarket
7 Day2.0%1.9%-2.2%
30 Day-2.4%3.2%0.9%
90 Day-7.6%3.1%13.4%
1 Year14.0%11.4%-2.0%-5.1%-8.3%-11.1%
3 Year23.1%13.8%28.9%14.1%-3.9%-14.0%
5 Year116.2%90.3%35.5%12.3%25.4%-9.3%

Long-Term Price Volatility Vs. Market

How volatile is Recordati Industria Chimica e Farmaceutica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Recordati Industria Chimica e Farmaceutica undervalued compared to its fair value and its price relative to the market?

23.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REC (€43.67) is trading above our estimate of fair value (€29.56)

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


Price To Earnings Ratio

PE vs Industry: REC's PE Ratio (23.1x) is in line with the XE Pharmaceuticals industry average.

PE vs Market: REC is poor value based on its PE Ratio (23.1x) compared to the Italian market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (7x) compared to the XE Pharmaceuticals industry average (3.7x).


Next Steps

Future Growth

How is Recordati Industria Chimica e Farmaceutica forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).

Earnings vs Market: REC's earnings (7.7% per year) are forecast to grow slower than the Italian market (21.6% per year).

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

Revenue vs Market: REC's revenue (5.9% per year) is forecast to grow faster than the Italian market (3.2% per year).

High Growth Revenue: REC's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REC's Return on Equity is forecast to be high in 3 years time (25.9%)


Next Steps

Past Performance

How has Recordati Industria Chimica e Farmaceutica performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: REC's current net profit margins (26.4%) are higher than last year (22.8%).


Past Earnings Growth Analysis

Earnings Trend: REC's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: REC's earnings growth over the past year (18.4%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: REC earnings growth over the past year (18.4%) exceeded the Pharmaceuticals industry 13.8%.


Return on Equity

High ROE: REC's Return on Equity (30.2%) is considered high.


Next Steps

Financial Health

How is Recordati Industria Chimica e Farmaceutica's financial position?


Financial Position Analysis

Short Term Liabilities: REC's short term assets (€879.2M) exceed its short term liabilities (€541.9M).

Long Term Liabilities: REC's short term assets (€879.2M) do not cover its long term liabilities (€980.7M).


Debt to Equity History and Analysis

Debt Level: REC's debt to equity ratio (86.7%) is considered high.

Reducing Debt: REC's debt to equity ratio has increased from 36.1% to 86.7% over the past 5 years.

Debt Coverage: REC's debt is well covered by operating cash flow (33.1%).

Interest Coverage: REC's interest payments on its debt are well covered by EBIT (28.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Recordati Industria Chimica e Farmaceutica current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REC's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Italian market (1.43%).

High Dividend: REC's dividend (2.38%) is low compared to the top 25% of dividend payers in the Italian market (4.57%).


Stability and Growth of Payments

Stable Dividend: REC's dividend payments have been volatile in the past 10 years.

Growing Dividend: REC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), REC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REC's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Andrea Recordati (49 yo)

4.42yrs

Tenure

€638,500

Compensation

Mr. Andrea Recordati has been Chief Executive Officer of Recordati Industria Chimica e Farmaceutica S.p.A. since August 16, 2016 and served as its Vice Chairman since August 16, 2016 until 2019. Mr. Record...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD6.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrea Recordati
CEO & Director4.42yrs€638.50kno data
Fritz Squindo
Group GM & Executive Director7.83yrs€910.00kno data
Luigi Felice Corte
Group Chief Financial Officer1.17yrsno datano data
Federica De Medici
Director of Investor Relations & Corporate Communications0.25yrno datano data
Daria Ghidoni
Vice President of Corporate Legal Counsel10yrsno datano data
Gabriele Finzi
VP of Corporate Development & Licensing4.33yrsno datano data
Giuseppe Gualazzini
Senior Vice President of Group Human Resources6.67yrsno datano data
Corrado Castellucci
Executive Vice President of Rare Diseases Business Unit2yrsno datano data
Luisa Mainoli
Senior Vice President of Group Finance2yrsno datano data
Roberto Teruzzi
Executive Vice President of Group Industrial Operations5.75yrsno datano data
Raffaele Sabia
Senior Vice President of Pharmaceutical Research & Development2yrsno datano data
Giorgio De Palma
Executive Director0.75yrno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: REC's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrea Recordati
CEO & Director4.42yrs€638.50kno data
Fritz Squindo
Group GM & Executive Director7.83yrs€910.00kno data
Giorgio De Palma
Executive Director0.75yrno datano data
Cathrin Petty
Director3yrsno datano data
Giampiero Mazza
Director3yrsno datano data
Alfredo Altavilla
Non-Executive Chairman of the Board0.75yrno datano data
Michaela Castelli
Lead Independent Director0.75yr€50.00kno data
Antonio Santi
Chairman of Statutory Auditor Board3.75yrsno datano data
Silvia Candini
Independent Director2yrsno datano data
Joanna Le Couilliard
Independent Director2yrsno datano data
Francesco Balestrieri
Director0.75yrno datano data
Guido Guidi
Vice Chairman0.75yrno datano data

2.0yrs

Average Tenure

49yo

Average Age

Experienced Board: REC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Recordati Industria Chimica e Farmaceutica S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Recordati Industria Chimica e Farmaceutica S.p.A.
  • Ticker: REC
  • Exchange: BIT
  • Founded: 1926
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €8.996b
  • Shares outstanding: 205.82m
  • Website: https://www.recordati.com

Number of Employees


Location

  • Recordati Industria Chimica e Farmaceutica S.p.A.
  • Via Matteo Civitali 1
  • Milan
  • Milan
  • 20148
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RECBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
0KBSLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
RCDT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RECMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
RER1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RECWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992

Biography

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, marketing, and sale of pharmaceuticals worldwide. The company offers ph...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 20:03
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
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.