OM:RECI B

Stock Analysis Report

Executive Summary

Recipharm AB (publ) provides contract development and manufacturing solutions to the pharmaceutical industry in Sweden, Italy, France, India, Spain, Portugal, Germany, and internationally.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Recipharm's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

RECI B

0.4%

SE Pharmaceuticals

2.2%

SE Market


1 Year Return

2.9%

RECI B

-1.3%

SE Pharmaceuticals

16.0%

SE Market

Return vs Industry: RECI B exceeded the Swedish Pharmaceuticals industry which returned -1.3% over the past year.

Return vs Market: RECI B underperformed the Swedish Market which returned 16% over the past year.


Shareholder returns

RECI BIndustryMarket
7 Day0.1%0.4%2.2%
30 Day2.5%-0.2%2.7%
90 Day23.0%-3.8%4.2%
1 Year4.0%2.9%0.6%-1.3%21.0%16.0%
3 Year2.4%0.04%10.3%4.6%34.5%14.2%
5 Year18.5%5.7%-8.8%-18.3%61.7%27.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Recipharm undervalued compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RECI B (SEK135.8) is trading below our estimate of fair value (SEK143.2)

Significantly Below Fair Value: RECI B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RECI B is poor value based on its PE Ratio (74.4x) compared to the Pharmaceuticals industry average (23x).

PE vs Market: RECI B is poor value based on its PE Ratio (74.4x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: RECI B is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: RECI B is good value based on its PB Ratio (1.6x) compared to the SE Pharmaceuticals industry average (3.6x).


Next Steps

Future Growth

How is Recipharm forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RECI B's forecast earnings growth (20% per year) is above the savings rate (0.4%).

Earnings vs Market: RECI B's earnings (20% per year) are forecast to grow faster than the Swedish market (8.8% per year).

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

Revenue vs Market: RECI B's revenue (6% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: RECI B's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RECI B's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Recipharm performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RECI B's earnings have declined by -21.1% per year over the past 5 years.

Accelerating Growth: RECI B has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RECI B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (1.9%).


Return on Equity

High ROE: RECI B's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: RECI B's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: RECI B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Recipharm's financial position?


Financial Position Analysis

Short Term Liabilities: RECI B's short term assets (SEK4.0B) exceeds its short term liabilities (SEK1.7B)

Long Term Liabilities: RECI B's short term assets (4.0B) do not cover its long term liabilities (6.2B)


Debt to Equity History and Analysis

Debt Level: RECI B's debt to equity ratio (85.5%) is considered high

Reducing Debt: RECI B's debt to equity ratio has increased from 27% to 85.5% over the past 5 years.

Debt Coverage: RECI B's debt is not well covered by operating cash flow (14%).

Interest Coverage: RECI B's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: RECI B's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.8%markettop25%4.7%industryaverage3.0%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RECI B's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: RECI B's dividend (0.92%) is low compared to the top 25% of dividend payers in the Swedish market (4.71%).

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

Growing Dividend: RECI B is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RECI B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Recipharm's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Thomas Eldered (59yo)

11.8yrs

Tenure

kr3,520,000

Compensation

Mr. Thomas Eldered, MSc is the Executive Director of Flerie Invest Ab. He has been the Chief Executive Officer\Owner and President of Recipharm AB (publ) since 2008. Mr. Eldered is Owner of Recipharm AB. H ...


CEO Compensation Analysis

Compensation vs. Market: Thomas's total compensation ($USD365.53K) is about average for companies of similar size in the Swedish market ($USD602.12K).

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


Management Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: RECI B's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr605,00025 Feb 19
Anders Carlberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max Pricekr121.00
Sellkr202,686,25220 Nov 18
Thomas Eldered
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,559,125
Max Pricekr130.00
Buykr9,22720 Nov 18
Olle Christenson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares69
Max Pricekr133.73

Ownership Breakdown


Management Team

  • Mark Quick (53yo)

    Executive Vice President of Corporate Development

    • Tenure: 0yrs
  • Thomas Eldered (59yo)

    CEO, President & Director

    • Tenure: 11.8yrs
    • Compensation: kr3.52m
  • Erik Haeffler (52yo)

    Vice President of Manufacturing Services & Head of Sustainability

    • Tenure: 4.8yrs
  • Kjell Johansson (63yo)

    President of Manufacturing Services - Europe

    • Tenure: 0yrs
  • Jonas Lejontand (41yo)

    Vice President of Human Resources

    • Tenure: 0yrs
  • Thomas Beck (50yo)

    Senior Vice President of Quality Management

    • Tenure: 0yrs
  • Jean-François Hilaire (55yo)

    Executive Vice President of Strategy & Global Integration

    • Tenure: 4.3yrs
  • Anders Högdin

    Head of Business Development & Sales Team - Europe

    • Tenure: 2.8yrs
  • Bernard Pluta (55yo)

    President of Development Services

    • Tenure: 0yrs
  • Tobias Hägglöv (41yo)

    Chief Financial Officer

    • Tenure: 1yrs

Board Members

  • Anders Carlberg (76yo)

    Independent Director

    • Tenure: 24.8yrs
  • Marianne Alexandersson (60yo)

    Independent Director

    • Tenure: 5.6yrs
  • Helena Levander (62yo)

    Independent Director

    • Tenure: 3.5yrs
  • Lars Backsell (67yo)

    Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: kr500.00k
  • Thomas Eldered (59yo)

    CEO, President & Director

    • Tenure: 11.8yrs
    • Compensation: kr3.52m
  • Olle Christenson (63yo)

    Independent Director

    • Tenure: 24.8yrs
  • Lennart Quist (61yo)

    Deputy Director

    • Tenure: 5.8yrs
  • Carlos von Bonhorst (62yo)

    Independent Director

    • Tenure: 4.4yrs
  • Ashwini Kakkar

    • Tenure: 0.4yrs
  • Eva Saers

    Director

    • Tenure: 0.4yrs

Company Information

Recipharm AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Recipharm AB (publ)
  • Ticker: RECI B
  • Exchange: OM
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr9.152b
  • Shares outstanding: 67.40m
  • Website: https://www.recipharm.com

Number of Employees


Location

  • Recipharm AB (publ)
  • Drottninggatan 29
  • PO Box 603
  • Stockholm
  • 101 32
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RECI BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKApr 2014
0QSDLSE (London Stock Exchange)YesSeries B SharesGBSEKApr 2014
RECIBsBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKApr 2014

Biography

Recipharm AB (publ) provides contract development and manufacturing solutions to the pharmaceutical industry in Sweden, Italy, France, India, Spain, Portugal, Germany, and internationally. It operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:35
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.