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Faes Farma SA (ES:FAE)
BME:FAE
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Faes Farma (FAE) AI Stock Analysis

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ES:FAE

Faes Farma

(BME:FAE)

Rating:72Outperform
Price Target:
€4.50
▲(7.14% Upside)
Faes Farma's strong financial performance is the most significant factor, supported by solid growth and profitability. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical analysis indicates short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Faes Farma (FAE) vs. iShares MSCI Spain ETF (EWP)

Faes Farma Business Overview & Revenue Model

Company DescriptionFaes Farma (FAE) is a global pharmaceutical company headquartered in Spain, specializing in the development, manufacturing, and marketing of a wide range of healthcare products. The company operates primarily in the pharmaceutical and biotechnology sectors, focusing on therapeutic areas such as neurology, endocrinology, and infectious diseases. Faes Farma is known for its commitment to innovation and quality, providing both prescription medications and over-the-counter products to improve health outcomes worldwide.
How the Company Makes MoneyFaes Farma generates revenue through multiple key streams, primarily from the sale of its pharmaceutical products, which include patented drugs, generics, and over-the-counter medications. The company operates in various international markets, allowing it to expand its customer base and increase sales. Significant partnerships with healthcare providers, distributors, and other pharmaceutical companies also contribute to its earnings, facilitating access to a broader market and enhancing its product portfolio. Additionally, Faes Farma invests in research and development to innovate and introduce new products, which can lead to increased revenue through new market opportunities. Overall, the combination of a diverse product line, strategic partnerships, and a focus on R&D underpins its revenue model.

Faes Farma Financial Statement Overview

Summary
Faes Farma showcases strong financial health across all key areas. The income statement reveals robust growth and profitability, the balance sheet highlights a low-risk, stable structure, and cash flow has improved significantly. The company is well-positioned for continued success with its solid financial foundation.
Income Statement
85
Very Positive
Faes Farma has shown consistent revenue growth, with a revenue increase from €451.17M to €493.65M (9.41%) in the latest year. The gross profit margin remains strong at 66.13%, and net profit margin improved to 22.56%. Both EBIT (21.69%) and EBITDA margins (25.99%) demonstrate robust profitability. Overall, the company exhibits strong financial performance in terms of growth and profitability.
Balance Sheet
90
Very Positive
The balance sheet is solid with a low debt-to-equity ratio of 0.003, indicating minimal leverage. The equity ratio is strong at 85.09%, reflecting a stable capital structure. Return on equity is high at 15.34%, showcasing effective use of equity capital. Overall, the company maintains a healthy financial position with low risk.
Cash Flow
80
Positive
Free cash flow has improved significantly from negative to €75.95M, reflecting effective cash management. The operating cash flow to net income ratio is 1.04, indicating good cash conversion. The free cash flow to net income ratio is 0.68, demonstrating strong cash generation relative to profits. Despite past volatility, recent improvements highlight a positive trend.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue493.65M451.17M438.75M398.56M380.24M
Gross Profit326.54M297.12M282.01M252.40M239.84M
EBITDA128.33M122.93M121.35M110.84M100.26M
Net Income111.36M91.90M89.50M82.39M72.55M
Balance Sheet
Total Assets853.08M776.03M725.67M641.76M564.15M
Cash, Cash Equivalents and Short-Term Investments72.14M47.75M84.10M73.41M93.14M
Total Debt1.99M23.90M32.69M16.44M13.89M
Total Liabilities126.46M112.68M123.39M103.70M91.27M
Stockholders Equity725.87M662.36M601.08M536.53M471.39M
Cash Flow
Free Cash Flow75.95M-1.22M25.84M20.23M52.77M
Operating Cash Flow115.47M100.97M106.79M79.64M78.49M
Investing Cash Flow-34.18M-97.36M-92.17M-83.48M-25.78M
Financing Cash Flow-51.71M-35.38M-18.46M-17.12M-14.35M

Faes Farma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.20
Price Trends
50DMA
4.38
Negative
100DMA
4.25
Negative
200DMA
3.84
Positive
Market Momentum
MACD
-0.04
Negative
RSI
38.61
Neutral
STOCH
30.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:FAE, the sentiment is Negative. The current price of 4.2 is below the 20-day moving average (MA) of 4.23, below the 50-day MA of 4.38, and above the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:FAE.

Faes Farma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€1.31B12.4114.89%4.26%11.04%8.29%
51
Neutral
$7.85B-0.21-41.41%2.22%22.81%-2.01%
€2.40B112.001.45%
€7.26B19.515.53%
€224.60M35.713.04%
€2.93B22.3625.44%1.30%
$1.71B35.9221.61%0.98%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:FAE
Faes Farma
4.20
0.67
18.81%
GB:0O9B
Almirall
11.20
2.45
28.00%
GB:0RDV
Grifols
8.53
0.26
3.14%
GB:0RB1
LABORATORIO REIG JOFRE
2.90
0.18
6.62%
GB:0ILL
Laboratorios Farmaceuticos Rovi
58.10
-19.93
-25.54%
PHMMF
Pharma Mar SA
95.15
50.62
113.68%

Faes Farma Corporate Events

Faes Farma Expands Ophthalmology Portfolio with Laboratorios Edol Acquisition
Jun 4, 2025

Faes Farma, S.A. has completed the acquisition of Laboratorios Edol, a leading Portuguese ophthalmology company, as part of its strategic plan to enhance its presence in Portugal and expand its international growth. This acquisition, valued at 75 million euros, is expected to create synergies with Faes Farma’s current R&D efforts and support business growth in new therapeutic areas.

Faes Farma Announces 2025 General Shareholders’ Meeting
May 19, 2025

Faes Farma, S.A. has announced the convening of its General Shareholders’ Meeting, scheduled for June 24 or 25, 2025, to discuss and approve key financial and management reports for the 2024 fiscal year. The meeting will also address the appointment of a new independent director and include an advisory vote on the directors’ remuneration report, reflecting the company’s ongoing governance and strategic planning efforts.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025