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 Analysis

Outstanding 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.1%

REC

10.3%

IT Pharmaceuticals

6.8%

IT Market


1 Year Return

12.0%

REC

-0.6%

IT Pharmaceuticals

-24.5%

IT Market

Return vs Industry: REC exceeded the Italian Pharmaceuticals industry which returned -3.7% over the past year.

Return vs Market: REC exceeded the Italian Market which returned -24.1% over the past year.


Shareholder returns

RECIndustryMarket
7 Day11.1%10.3%6.8%
30 Day1.2%-3.8%-22.4%
90 Day4.2%-9.3%-27.8%
1 Year14.9%12.0%5.1%-0.6%-21.2%-24.5%
3 Year32.0%22.1%18.4%5.0%-12.2%-20.9%
5 Year151.4%120.5%13.3%-6.0%-23.0%-49.3%

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?

21.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REC (€39.13) is trading above our estimate of fair value (€30.88)

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 (21.7x) compared to the Pharmaceuticals industry average (19.3x).

PE vs Market: REC is poor value based on its PE Ratio (21.7x) compared to the Italian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: REC is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (6.7x) compared to the XE Pharmaceuticals industry average (2.4x).


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 7 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's forecast earnings growth (4.1% per year) is above the savings rate (1.2%).

Earnings vs Market: REC's earnings (4.1% per year) are forecast to grow slower than the Italian market (11.2% per year).

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

Revenue vs Market: REC's revenue (3.9% per year) is forecast to grow faster than the Italian market (1.8% per year).

High Growth Revenue: REC's revenue (3.9% 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 (24.9%)


Next Steps

Past Performance

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

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REC has high quality earnings.

Growing Profit Margin: REC's current net profit margins (24.9%) are higher than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: REC's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: REC's earnings growth over the past year (18.1%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: REC earnings growth over the past year (18.1%) exceeded the Pharmaceuticals industry 1.9%.


Return on Equity

High ROE: REC's Return on Equity (30.8%) 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 (€809.4M) exceed its short term liabilities (€586.8M).

Long Term Liabilities: REC's short term assets (€809.4M) do not cover its long term liabilities (€1.0B).


Debt to Equity History and Analysis

Debt Level: REC's debt to equity ratio (92.7%) is considered high.

Reducing Debt: REC's debt to equity ratio has increased from 41.6% to 92.7% over the past 5 years.

Debt Coverage: REC's debt is well covered by operating cash flow (29.8%).

Interest Coverage: REC's interest payments on its debt are well covered by EBIT (22x 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 0.7x debt).


Next Steps

Dividend

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

2.66%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: REC's dividend (2.66%) is higher than the bottom 25% of dividend payers in the Italian market (2.51%).

High Dividend: REC's dividend (2.66%) is low compared to the top 25% of dividend payers in the Italian market (5.89%).


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 (55.6%), 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 (55.9% 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 (48yo)

3.58s

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 ($USD0.00) is below average for companies of similar size in the Italian market ($USD3.24M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrea Recordati
CEO & Director3.58yrs€638.50kno data
Fritz Squindo
Group GM & Executive Director7yrs€910.00kno data
Luigi Felice Corte
Group Chief Financial Officer0.33yrno datano data
Marianne Tatschke
Director of Investor Relations & Corporate Communications7.17yrsno datano data
Daria Ghidoni
Vice President of Corporate Legal Counsel9.17yrsno datano data
Gabriele Finzi
VP of Corporate Development & Licensing3.5yrsno datano data
Giuseppe Gualazzini
Senior Vice President of Group Human Resources5.83yrsno datano data
Corrado Castellucci
Executive Vice President of Rare Diseases Business Unit1.17yrsno datano data
Luisa Mainoli
Senior Vice President of Group Finance1.17yrsno datano data
Roberto Teruzzi
Executive Vice President of Group Industrial Operations4.92yrsno datano data

4.3yrs

Average Tenure

55yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Andrea Recordati
CEO & Director3.58yrs€638.50kno data
Fritz Squindo
Group GM & Executive Director7yrs€910.00kno data
Cathrin Petty
Direcror2.17yrsno datano data
Giampiero Mazza
Director2.17yrsno datano data
Alfredo Altavilla
Chairman of the Board1.17yrsno datano data
Søren Vestergaard-Poulsen
Director2.17yrsno datano data
Michaela Castelli
Independent Non-Executive Director5.92yrs€50.00kno data
Antonio Santi
Chairman of Statutory Auditor Board2.92yrsno datano data
Flemming Ørnskov
Chairman1.17yrsno datano data
Joanna Couilliard
Independent Director1.17yrsno datano data

2.2yrs

Average Tenure

49.5yo

Average Age

Experienced Board: REC's board of directors are not considered experienced ( 2.2 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: €7.985b
  • 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, Africa, the United States, Canada, and internationally. The company offers pharmaceuticals in various therapeutic areas, including cardiovascular, cosmetics, dermatology, dietary supplements, gynecology and obstetrics, medical devices, musculo-skeletal disorders and analgesia, over the counter/non-prescription pharmaceuticals, urology, allergy, anti-infectives, central nervous system, endocrinology, gastrointestinal, nutrition and related products, immune-suppressants, pain management/inflammation, generics, pneumology, antipyretics and cold preparations, endocrinology, oncology, respiratory, and radio contrast agent, as well as ear, nose, and throat. It also provides pharmaceutical chemicals, such as chemical syntheses, active pharmaceutical ingredients, and intermediates. The company was founded in 1926 and is headquartered in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:16
End of Day Share Price2020/03/30 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.