Faes Farma (FAE) AI Stock Analysis

• Market Cap: €1.42B
• Dividend Yield: 6.07%
• Average Volume (3M): 215.59K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.46
• Revenue Growth: 9.42%
• EPS Growth: 20.43%
• Country: ES
• Employees: 1,775
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 316,223,940
• 10 Day Avg. Volume: 231,348
• 30 Day Avg. Volume: 215,586
• PEG Ratio: 3.36
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.52
• 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: €5.50
• Price Target Upside: 20.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: €5.00 ▲(9.89%Upside)

Faes Farma's strong financial performance, characterized by robust growth and a solid balance sheet, is the primary driver of its stock score. Technical analysis supports this strength with indications of a stable uptrend. The valuation is favorable with a reasonable P/E ratio and a good dividend yield, enhancing its attractiveness. Overall, the company is well-positioned in the market, supported by its solid financials and stable technical indicators.

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 primarily through the sale of its pharmaceutical products, which include both brand-name and generic medications. The company's revenue streams are diversified across prescription drugs, over-the-counter products, and nutritional supplements. Key revenue drivers include the continuous development and launch of new pharmaceutical products, leveraging its R&D capabilities. International expansion and strategic partnerships also play a crucial role in enhancing its market reach and distribution network. Additionally, Faes Farma benefits from collaborations with other pharmaceutical companies for co-development and licensing agreements, which further bolster its financial performance.

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

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: Positive
• Last Price: 4.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:FAE, the sentiment is Positive. The current price of 4.55 is above the 20-day moving average (MA) of 4.44, above the 50-day MA of 4.29, and above the 200-day MA of 3.69, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 67.30 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:FAE.

Faes Farma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	80 Outperform	€1.42B	12.72	16.04%	6.07%	9.42%	20.43%
Sector *	52 Neutral	$7.51B	0.24	-62.67%	2.30%	16.09%	0.95%
0O9B		€2.35B	228.33	0.69%	1.44%	―	―
0RDV		€7.09B	29.51	3.37%	―	―	―
0RB1		€245.01M	22.19	5.11%	1.40%	―	―
0ILL		€2.82B	20.58	25.24%	1.62%	―	―
PHMMF		$1.70B	78.06	10.15%	0.96%	―	―

Faes Farma Corporate Events

Faes Farma Expands Ophthalmology Portfolio with Laboratorios Edol Acquisition

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

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.

Faes Farma Announces Q1 2025 Results Webcast

Faes Farma has announced a webcast for analysts and investors to present its first quarter 2025 results. The webcast, featuring key company executives, will include a Q&A session and aims to provide insights into the company’s financial performance and strategic direction.

Faes Farma Unveils Strategic Plan for 2025-2030

Faes Farma held its Capital Markets Day to outline its strategic plan for 2025-2030, emphasizing transformation and future growth. The plan focuses on four strategic axes, highlighting the company’s ambition to strengthen its organizational culture and expand its international business operations.

Faes Farma Unveils New Strategic Plan at Capital Markets Day

Faes Farma, a company operating in the pharmaceutical industry, has announced its Capital Markets Day event to unveil the Group’s new Strategic Plan. This event will outline the company’s objectives and growth strategies for the upcoming years, potentially impacting its market positioning and providing insights for stakeholders.