OTCPK:ARSU.F

Stock Analysis Report

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Executive Summary

Fagron NV, a pharmaceutical compounding company, provides personalized pharmaceutical care to hospitals, pharmacies, clinics, and patients. More Details


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ARSU.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.6%

ARSU.F

-4.5%

US Healthcare

-3.3%

US Market


1 Year Return

39.6%

ARSU.F

17.2%

US Healthcare

10.9%

US Market

Return vs Industry: ARSU.F exceeded the US Healthcare industry which returned 17.2% over the past year.

Return vs Market: ARSU.F exceeded the US Market which returned 10.9% over the past year.


Shareholder returns

ARSU.FIndustryMarket
7 Day13.6%-4.5%-3.3%
30 Day13.6%-7.2%-5.7%
90 Day13.6%-1.0%8.2%
1 Year39.6%39.6%18.8%17.2%13.4%10.9%
3 Year66.4%66.4%20.9%15.6%34.9%25.9%
5 Yearn/a48.9%38.3%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARSU.F ($24.76) is trading below our estimate of fair value ($27.19)

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


Price To Earnings Ratio

PE vs Industry: ARSU.F is poor value based on its PE Ratio (25.5x) compared to the US Healthcare industry average (21.2x).

PE vs Market: ARSU.F is poor value based on its PE Ratio (25.5x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ARSU.F is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ARSU.F is overvalued based on its PB Ratio (6.8x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

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

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARSU.F's forecast earnings growth (13.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ARSU.F's earnings (13.8% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: ARSU.F's revenue (6.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ARSU.F's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARSU.F's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Fagron performed over the past 5 years?

51.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARSU.F has high quality earnings.

Growing Profit Margin: ARSU.F's current net profit margins (10.7%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: ARSU.F's earnings have grown significantly by 51.8% per year over the past 5 years.

Accelerating Growth: ARSU.F's earnings growth over the past year (17.9%) is below its 5-year average (51.8% per year).

Earnings vs Industry: ARSU.F earnings growth over the past year (17.9%) underperformed the Healthcare industry 31.1%.


Return on Equity

High ROE: Whilst ARSU.F's Return on Equity (26.14%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Fagron's financial position?


Financial Position Analysis

Short Term Liabilities: ARSU.F's short term assets (€275.0M) exceed its short term liabilities (€241.6M).

Long Term Liabilities: ARSU.F's short term assets (€275.0M) do not cover its long term liabilities (€338.0M).


Debt to Equity History and Analysis

Debt Level: ARSU.F's debt to equity ratio (163.6%) is considered high.

Reducing Debt: ARSU.F's debt to equity ratio has reduced from 325.7% to 163.6% over the past 5 years.

Debt Coverage: ARSU.F's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: ARSU.F's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Fagron current dividend yield, its reliability and sustainability?

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARSU.F's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: ARSU.F's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (5.03%).


Stability and Growth of Payments

Stable Dividend: ARSU.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ARSU.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ARSU.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Rafael Padilla (42 yo)

2.83yrs

Tenure

€768,000

Compensation

Mr. Rafael Padilla has been Chief Executive Officer at Fagron NV since November 27, 2017 and served as its Area General Manager of South America and Southern Europe since October 25, 2016. Mr. Padilla serv ...


CEO Compensation Analysis

Compensation vs Market: Rafael's total compensation ($USD894.58K) is below average for companies of similar size in the US market ($USD4.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rafael Padilla
CEO & Executive Director2.83yrs€768.00kno data
Karin de Jong
CFO & Executive Director3.92yrsno datano data
Johan Verlinden
Global Legal Affairs Director2.67yrsno datano data
Constantijn Rietschoten
Chief Communications Officerno datano datano data
Tara Schuh
Global Marketing Communications Director0.25yrno datano data
Céline Caveye
Global HR Director2.67yrsno datano data
Andrew Pulido
President of North America0.67yrno datano data
Blake Keller
President of North Americano datano datano data

2.7yrs

Average Tenure

42yo

Average Age

Experienced Management: ARSU.F's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rafael Padilla
CEO & Executive Director2.83yrs€768.00kno data
Karin de Jong
CFO & Executive Director3.92yrsno datano data
Marc Armand Alice André Coucke
Non-Executive Director3.92yrs€30.00kno data
Veerle Deprez
Independent Director3.33yrs€31.20kno data
Michael Schenck
Non-Executive Director0.92yr€38.40kno data
Robert J. Ten Hoedt
Independent Director0.75yrno datano data
Giulia Van Waeyenberge
Independent Director4.08yrs€38.40kno data
Koen Hoffman
Independent Chairman3.33yrs€100.00kno data

3.3yrs

Average Tenure

47yo

Average Age

Experienced Board: ARSU.F's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fagron NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fagron NV
  • Ticker: ARSU.F
  • Exchange: OTCPK
  • Founded: 1990
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: €1.532b
  • Listing Market Cap: €1.785b
  • Shares outstanding: 72.08m
  • Website: https://www.fagron.com

Number of Employees


Location

  • Fagron NV
  • Venecoweg 20A
  • Nazareth
  • East Flanders
  • 9810
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4A5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
FAGRENXTBR (Euronext Brussels)YesOrdinary SharesBEEUROct 2007
0HNZLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2007
FAGRBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2007
ARSU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007

Biography

Fagron NV, a pharmaceutical compounding company, provides personalized pharmaceutical care to hospitals, pharmacies, clinics, and patients. It prepares personalized ready-to-use medication in its sterile a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 06:12
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.