Faes Farma (FAE) AI Stock Analysis

• Market Cap: €1.40B
• Dividend Yield: 4.01%
• Average Volume (3M): 107.13K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.36
• 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: 105,940
• 30 Day Avg. Volume: 107,127
• PEG Ratio: 0.48
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 14.17
• 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: €5.00
• Price Target Upside: 12.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: €5.00 ▲(12.11% Upside)

Faes Farma's strong financial performance is the most significant factor contributing to its overall score, supported by a solid balance sheet and improved cash flow. The stock's valuation is reasonable, and technical indicators suggest stable momentum. The absence of earnings call data and corporate events does not impact the score.

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 improved cash flow management. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.89M	493.65M	451.17M	438.75M	398.56M	380.24M
Gross Profit	295.33M	326.54M	297.12M	282.01M	252.40M	239.84M
EBITDA	119.46M	128.33M	122.93M	121.35M	110.84M	100.26M
Net Income	105.34M	111.36M	91.90M	89.50M	82.39M	72.55M
Balance Sheet
Total Assets	1.00B	853.08M	776.03M	725.67M	641.76M	564.15M
Cash, Cash Equivalents and Short-Term Investments	111.62M	72.14M	47.75M	84.10M	73.41M	93.14M
Total Debt	95.65M	1.99M	23.90M	32.69M	16.44M	13.89M
Total Liabilities	270.09M	126.46M	112.68M	123.39M	103.70M	91.27M
Stockholders Equity	729.43M	725.87M	662.36M	601.08M	536.53M	471.39M
Cash Flow
Free Cash Flow	78.56M	75.95M	-1.22M	25.84M	20.23M	52.77M
Operating Cash Flow	101.28M	115.47M	100.97M	106.79M	79.64M	78.49M
Investing Cash Flow	-85.97M	-34.18M	-97.36M	-92.17M	-83.48M	-25.78M
Financing Cash Flow	27.32M	-51.71M	-35.38M	-18.46M	-17.12M	-14.35M

Faes Farma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.46
• 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 4.46 is above the 20-day moving average (MA) of 4.34, above the 50-day MA of 4.27, and above the 200-day MA of 4.00, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.35 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	77 Outperform	€1.40B	13.30	14.89%	4.01%	11.04%	8.29%
ROVI	71 Outperform	€3.03B	23.07	25.44%	1.56%	-3.73%	-7.56%
RJF	68 Neutral	€245.83M	37.07	3.04%	1.64%	0.58%	-30.60%
PHM	56 Neutral	$1.41B	33.13	21.61%	1.01%	19.18%	―
ALM	53 Neutral	€2.60B	121.20	1.45%	1.30%	13.32%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%