BIT:REC

Stock Analysis Report

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 in Europe, the Middle East, Africa, the United States, Canada, and internationally.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.0%

REC

-0.3%

IT Pharmaceuticals

0.6%

IT Market


1 Year Return

25.9%

REC

9.7%

IT Pharmaceuticals

15.3%

IT Market

Return vs Industry: REC exceeded the Italian Pharmaceuticals industry which returned 9.7% over the past year.

Return vs Market: REC exceeded the Italian Market which returned 15.3% over the past year.


Shareholder returns

RECIndustryMarket
7 Day-2.0%-0.3%0.6%
30 Day-6.0%-0.8%1.0%
90 Day-7.4%4.1%1.0%
1 Year29.6%25.9%16.0%9.7%20.6%15.3%
3 Year51.0%39.6%32.6%17.7%27.0%8.2%
5 Year222.0%180.6%32.5%10.5%21.3%-26.1%

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?

23.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REC (€37.4) is trading above our estimate of fair value (€27.49)

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


Price To Earnings Ratio

PE vs Industry: REC is poor value based on its PE Ratio (23.7x) compared to the Pharmaceuticals industry average (23x).

PE vs Market: REC is poor value based on its PE Ratio (23.7x) compared to the Italian market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: REC is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (7.1x) compared to the XE Pharmaceuticals industry average (3.2x).


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?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's forecast earnings growth (5.9% per year) is above the savings rate (2.9%).

Earnings vs Market: REC's earnings (5.9% per year) are forecast to grow slower than the Italian market (8.4% per year).

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

Revenue vs Market: REC's revenue (4.5% per year) is forecast to grow faster than the Italian market (3% per year).

High Growth Revenue: REC's revenue (4.5% 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 (29.5%)


Next Steps

Past Performance

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

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REC's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: REC's earnings growth over the past year (5.4%) is below its 5-year average (15.8% per year).

Earnings vs Industry: REC earnings growth over the past year (5.4%) exceeded the Pharmaceuticals industry 1.9%.


Return on Equity

High ROE: REC's Return on Equity (30.1%) is considered high.


Return on Assets

ROA vs Industry: REC has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: REC has improved its Return on Capital Employed over the past 3 years.


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 (€657.4M) exceeds its short term liabilities (€401.5M)

Long Term Liabilities: REC's short term assets (657.4M) do not cover its long term liabilities (696.4M)


Debt to Equity History and Analysis

Debt Level: REC's debt to equity ratio (68.5%) is considered high

Reducing Debt: REC's debt to equity ratio has increased from 43.1% to 68.5% over the past 5 years.

Debt Coverage: REC's debt is well covered by operating cash flow (42.4%).

Interest Coverage: REC's interest payments on its debt are well covered by EBIT (18.1x coverage).


Balance Sheet

Inventory Level: REC has a low level of unsold assets or inventory.

Debt Coverage by Assets: REC's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

2.51%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.1%markettop25%4.4%industryaverage3.0%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REC's dividend (2.51%) is higher than the bottom 25% of dividend payers in the Italian market (2.08%).

High Dividend: REC's dividend (2.51%) is low compared to the top 25% of dividend payers in the Italian market (4.4%).

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 (58.2%), 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 (58.9% payout ratio).


Next Steps

Management

What is the CEO of Recordati Industria Chimica e Farmaceutica's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Andrea Recordati (48yo)

3.2yrs

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 ($USD0.00) is too low to compare against companies of similar size in the Italian market ($USD0.00).

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


Management Age and Tenure

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: REC's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

49.5yo

Average Age

Experienced Board: REC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Fritz Squindo (63yo)

    CFO, MD & Executive Director

    • Tenure: 6.6yrs
    • Compensation: €910.00k
  • Andrea Recordati (48yo)

    CEO & Director

    • Tenure: 3.2yrs
    • Compensation: €638.50k
  • Roberto Teruzzi

    Executive Vice President of Group Industrial Operations

    • Tenure: 4.5yrs
  • Daria Ghidoni

    Vice President of Corporate Legal Counsel

    • Tenure: 8.8yrs
  • Marianne Tatschke

    Director of Investor Relations & Corporate Communications

    • Tenure: 6.8yrs
  • Corrado Castellucci

    Executive Vice President of Rare Diseases Business Unit

    • Tenure: 0.8yrs
  • Giuseppe Gualazzini (60yo)

    Senior Vice President of Group Human Resources

    • Tenure: 5.4yrs
  • Luisa Mainoli

    Senior Vice President of Group Finance

    • Tenure: 0.8yrs
  • Gabriele Finzi

    VP of Corporate Development & Licensing

    • Tenure: 3.1yrs
  • Raffaele Sabia

    Senior Vice President of Pharmaceutical Research & Development

    • Tenure: 0.8yrs

Board Members

  • Cathrin Petty (45yo)

    Direcror

    • Tenure: 1.8yrs
  • Fritz Squindo (63yo)

    CFO, MD & Executive Director

    • Tenure: 6.6yrs
    • Compensation: €910.00k
  • Andrea Recordati (48yo)

    CEO & Director

    • Tenure: 3.2yrs
    • Compensation: €638.50k
  • Giampiero Mazza

    Director

    • Tenure: 1.8yrs
  • Alfredo Altavilla (56yo)

    Vice Chairman

    • Tenure: 0.8yrs
  • Søren Vestergaard-Poulsen (50yo)

    Director

    • Tenure: 1.8yrs
  • Michaela Castelli (49yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: €50.00k
  • Antonio Santi (42yo)

    Chairman of Statutory Auditor Board

    • Tenure: 2.5yrs
  • Flemming Ørnskov (61yo)

    Chairman

    • Tenure: 0.8yrs
  • Joanna Couilliard

    Independent Director

    • Tenure: 0.8yrs

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: €7.632b
  • Shares outstanding: 204.07m
  • 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 in Europe, the Middle East, Afri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:46
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.