OTCPK:ARSU.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with high growth potential.


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


Market Performance


7 Day Return

-1.0%

ARSU.F

-1.2%

US Healthcare

-0.02%

US Market


1 Year Return

-8.6%

ARSU.F

-9.4%

US Healthcare

1.6%

US Market

ARSU.F matched the Healthcare industry (-9.4%) over the past year.

ARSU.F underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

ARSU.FIndustryMarket
7 Day-1.0%-1.2%-0.02%
30 Dayn/a-2.2%2.7%
90 Dayn/a-1.5%1.4%
1 Year-8.6%-8.6%-8.0%-9.4%3.8%1.6%
3 Yearn/a28.7%23.5%45.2%35.8%
5 Year-69.6%-69.6%62.7%53.0%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Fagron's share price is below the future cash flow value, and at a moderate discount (> 20%).

Fagron's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Fagron is overvalued based on earnings compared to the US Healthcare industry average.

Fagron is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Fagron is poor value based on expected growth next year.


Price Based on Value of Assets

Fagron is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Fagron expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Fagron's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

Fagron's earnings are expected to grow significantly at over 20% yearly.

Fagron's revenue growth is expected to exceed the United States of America market average.

Fagron's earnings growth is expected to exceed the United States of America market average.

Fagron's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Fagron is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Fagron performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Fagron's year on year earnings growth rate has been positive over the past 5 years.

Fagron's 1-year earnings growth exceeds its 5-year average (14% vs 13.2%)

Fagron's earnings growth has exceeded the US Healthcare industry average in the past year (14% vs 5.6%).


Return on Equity

Whilst Fagron has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Fagron used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Fagron has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Fagron's financial position?


Financial Position Analysis

Fagron is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Fagron's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Fagron's level of debt (154.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (341.6% vs 154.8% today).

Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

1.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Fagron's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Fagron's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Fagron is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Fagron is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Fagron's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Rafael Padilla (41yo)

1.8yrs

Tenure

€742,000

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

Rafael's remuneration is lower than average for companies of similar size in United States of America.

Rafael's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

41yo

Average Age

The average tenure for the Fagron management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

46yo

Average Age

The average tenure for the Fagron board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Céline Caveye

    Global HR Director

    • Tenure: 1.7yrs
  • Constantijn Rietschoten (49yo)

    Chief Communications Officer

    • Tenure: 0yrs
  • Tomasz Kania

    Chief Operations Officer

    • Tenure: 1.6yrs
  • Karin de Jong (40yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
  • Rafael Padilla (41yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: €742.00k
  • Blake Keller

    President of North America

    • Tenure: 0yrs
  • Johan Verlinden

    Global Legal Affairs Director

    • Tenure: 1.7yrs
  • Baris Arican

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Marc Armand Alice André Coucke (54yo)

    Non Executive Director

    • Tenure: 2.9yrs
    • Compensation: €30.00k
  • Frank Vlayen (54yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: €37.20k
  • Veerle Deprez (59yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €30.00k
  • Michael Schenck (37yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: €37.20k
  • Marc Janssens (60yo)

    Non Executive Director

    • Tenure: 2.9yrs
    • Compensation: €30.00k
  • Giulia Van Waeyenberge (37yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: €37.20k
  • Koen Hoffman (51yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: €100.00k
  • Karin de Jong (40yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
  • Rafael Padilla (41yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: €742.00k
  • Matthias Geyssens (35yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: €37.20k

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: €1.175b
  • Listing Market Cap: €1.299b
  • Shares outstanding: 71.74m
  • 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 worldwide. It operates through four segments: Fagron Europe, Fagro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 01:12
End of Day Share Price2019/09/16 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.