Faes Farma (FAE) AI Stock Analysis

• Market Cap: €1.31B
• Dividend Yield: 4.24%
• Average Volume (3M): 95.94K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.37
• Revenue Growth: 11.04%
• EPS Growth: 8.29%
• Country: ES
• Employees: 1,775
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.17
• Shares Outstanding: 316,223,940
• 10 Day Avg. Volume: 97,210
• 30 Day Avg. Volume: 95,938
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €4.50
• Price Target Upside: 7.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: €4.50 ▲(7.40% Upside)

Faes Farma's strong financial performance is the most significant factor, demonstrating robust growth, profitability, and a stable financial structure. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical analysis presents mixed signals, with no strong momentum. Overall, the stock is well-positioned for stability and potential growth.

Faes Farma Business Overview & Revenue Model

Company Description

Faes Farma, S.A., a pharmaceutical company, researches, develops, produces, and commercializes pharmaceutical products and raw materials in Spain and internationally. The company's product portfolio includes prescription drugs, generic drugs, over-the-counter (OTC) drugs, food supplements, baby foods, and other health products. It offers Actimag, a magnesium pidolate; Bilaxten, an anti-allergic; Bronquidiazina CR, an anti-infective; Claversal for ulcerative colitis and Crohn's disease; Dezacor, a corticoid; Dolotren, an anti-inflammatory; Dolotren Gel; Dynamogen, an anti-anorexic; Ferroprotina, an anti-anaemic; Hidroferol; Lipofen; Positon for dermatitis; strength builder products, such as Potenciator and Surmenalit; Pruina, a laxative; Robaxisal Compuesto, a muscle relaxant and analgesic; Trausan, a citicoline; Venosmil, a venous vasoprotector; Venosmil Gel; and Yendol, an anti-flu. The company also provides Bilastine, an antihistamine molecule for the treatment of allergic rhino conjunctivitis and urticarial; Calcifediol for bone metabolism; Deflazacort to treat osteoarticular disease; Hidrosmin for venous insufficiency; and Mesalazine to treat digestion problems. It also exports its products. Faes Farma, S.A. was founded in 1933 and is headquartered in Leioa, Spain.

How the Company Makes Money

Faes 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 exhibits strong financial health with consistent revenue growth, robust profitability margins, a solid balance sheet with minimal leverage, and significant improvements in cash flow. The company is well-positioned for continued success.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.65M	451.17M	438.75M	398.56M	380.24M
Gross Profit	326.54M	297.12M	282.01M	252.40M	239.84M
EBITDA	128.33M	122.93M	121.35M	110.84M	100.26M
Net Income	111.36M	91.90M	89.50M	82.39M	72.55M
Balance Sheet
Total Assets	853.08M	776.03M	725.67M	641.76M	564.15M
Cash, Cash Equivalents and Short-Term Investments	72.14M	47.75M	84.10M	73.41M	93.14M
Total Debt	1.99M	23.90M	32.69M	16.44M	13.89M
Total Liabilities	126.46M	112.68M	123.39M	103.70M	91.27M
Stockholders Equity	725.87M	662.36M	601.08M	536.53M	471.39M
Cash Flow
Free Cash Flow	75.95M	-1.22M	25.84M	20.23M	52.77M
Operating Cash Flow	115.47M	100.97M	106.79M	79.64M	78.49M
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 Price: 4.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.19 is below the 20-day moving average (MA) of 4.23, below the 50-day MA of 4.29, and above the 200-day MA of 3.92, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.95 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	73 Outperform	€1.31B	12.40	14.89%	4.24%	11.04%	8.29%
ROVI	65 Neutral	2.83B	21.78	23.47%	1.67%	-3.73%	-7.56%
PHM	64 Neutral	1.54B	36.33	20.84%	0.92%	19.18%	―
RJF	64 Neutral	228.68M	35.22	4.85%	1.75%	0.58%	-30.60%
ALM	53 Neutral	2.41B	113.00	1.46%	1.40%	13.32%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%