Recordati Industria Chimica e Farmaceutica S.p.A. REC.MI
Composite 59/100; the shares have moved about 15% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 42/100 — a slight mark against it.
Quality ranks 77/100 — a strong point in its favour. Income ranks 70/100 — a moderate point in its favour. Growth ranks 70/100 — a moderate point in its favour.
Balance-sheet strength ranks 42/100 — a slight mark against it. Valuation ranks 47/100 — a slight mark against it.
What the company does Recordati researches, develops, produces, and sells prescription pharmaceuticals across Italy, the U.S., and international markets, with segments in Specialty and Primary Care and Rare Diseases. Its pipeline includes treatments for rare metabolic disorders (e.g., Maapliv, Carbaglu), oncology (e.g., Fotivda, Qarziba), and orphan drugs (e.g., Cystadrops, ENJAYMO).
Key financials Recordati reports strong profitability with ROE 24.9%, ROA 9.8%, and ROCE 18.0%. Gross, operating, and net margins stand at 71.5%, 27.0%, and 18.4%, respectively. Revenue grew 8.3% and EPS 28.7%, supported by a Piotroski F-Score of 8/9 and Altman Z-score of 3.63.
Stock health The balance sheet shows debt/equity of 1.09 and net debt/EBITDA of 1.88, with interest coverage at 7.37x and a current ratio of 1.26. Dividend yield is 2.8% with a payout ratio of 56.3%. SIDERAVIA scores highlight strong quality (75.5) and income (77.6), with growth (57.9) and momentum (57.0) mid-tier.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target. Specifically, it is at a discount of 10.10% versus our fair-value estimate of 56.59 and a discount of 15.28% versus the analyst 12-month target of 59.26. - Forward P/E of 13.62 (vs trailing 21.64) suggests valuation support (Valuation 52.1) - High gross margin 71.5% and ROE 24.9% reflect pricing power and efficiency (Quality 75.5) - EBITDA multiple of 12.13x is below sector averages, per EV/EBITDA metric - 12-month momentum at -2.81% and RSI 54.40 indicate mild recent softness
Looking forward Forward PEG of 0.23 implies undemanding growth valuation, while FCF yield of 5.2% supports cash returns. Pipeline catalysts in rare diseases and specialty care could drive further re-rating toward fair value. Analysts (nine) collectively see 15.28% upside to 59.26, implying potential rerating as visibility improves.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.