Grifols (GRF) AI Stock Analysis

• Market Cap: €7.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 42.6
• Beta (1Y): 1.32
• Revenue Growth: 10.76%
• EPS Growth: 3.13%
• Country: ES
• Employees: 23,833
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.09
• Shares Outstanding: 426,129,800
• 10 Day Avg. Volume: 2,121,129
• 30 Day Avg. Volume: 2,019,610
• PEG Ratio: 2.12
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.90
• 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: €13.50
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: €12.50 ▲(3.99%Upside)

Grifols demonstrates solid financial performance with strong revenue growth and improved cash flow, which is the most significant factor. Technical indicators suggest positive momentum but warn of potential overbought conditions. The high P/E ratio indicates overvaluation, which weighs down the overall score.

Grifols Business Overview & Revenue Model

Company Description

Grifols, S.A. engages in the procurement, manufacture, preparation, and sale of therapeutic products, primarily hemoderivatives. The company operates through Bioscience, Hospital, Diagnostic, Bio Supplies, and Others divisions. The Bioscience division researches, develops, produces, and markets plasma-derived medicines and other innovative solutions to treat patients with chronic, rare, prevalent, and life-threatening diseases. It offers immunoglobulins, alpha-1 antitrypsin, albumin, clotting factors, and hyperimmune globulins. The Hospital division offers non-biological pharmaceutical products and medical supplies clinical nutrition, intravenous therapy, and medical devices. The Diagnostic division researches, develops, produces, and commercializes diagnostic products that span the healthcare continuum from prevention, screening, diagnosis, and prognosis to disease and treatment monitoring to serve professionals. The Bio Supplies division provides biological materials for life-science research, clinical trials, and for manufacturing pharmaceutical and diagnostic products. Its products and services are used by healthcare providers to diagnose and treat patients with hemophilia, immune deficiencies, infectious diseases, and other medical conditions. The company serves public and private customers; and wholesalers, distributors, group purchasing organizations, blood banks, hospitals and care institutions, and national health systems. Grifols, S.A. has a technology collaboration agreement with Mondragon. The company was founded in 1940 and is headquartered in Barcelona, Spain.

How the Company Makes Money

Grifols generates revenue predominantly through the sale of plasma-derived products, which are essential for treating chronic and rare diseases. The company's Bioscience division is the largest revenue driver, accounting for a significant portion of its income by developing and marketing therapies made from human plasma. These therapies are used in various medical treatments, including immunology, hematology, and neurology. Additionally, Grifols' Diagnostic division provides diagnostic solutions for blood banks, hospitals, and laboratories, offering products like blood typing and screening systems. The Hospital division contributes to revenue by supplying intravenous solutions and other hospital pharmacy products. Grifols also earns income from its Bio Supplies division, which deals with biological materials for non-therapeutic applications. Strategic partnerships and acquisitions further enhance Grifols' market presence and revenue streams, allowing the company to expand its product offerings and global reach.

Grifols Financial Statement Overview

Summary

Grifols shows solid financial performance with strong revenue growth and improved cash flow metrics. However, the net profit margin remains constrained due to high leverage, which may pose future financial risks.

Income Statement

Grifols has demonstrated strong revenue growth, with a 9.41% increase from 2023 to 2024. The gross profit margin has remained stable around 39-40%, and the EBIT and EBITDA margins showed improvement, indicating enhanced operational efficiency. However, the net profit margin is relatively low at 2.18% for 2024, reflecting pressure on net income despite revenue growth.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.72 in 2024, indicating significant leverage, which could pose financial risk. However, a moderate return on equity of 2.67% suggests the company is generating a modest return on its investments. The equity ratio of 27.49% indicates a balanced capital structure but highlights reliance on debt financing.

Cash Flow

Grifols' free cash flow improved significantly from negative in 2023 to positive in 2024, highlighting better cash management. The operating cash flow to net income ratio of 5.75 suggests strong cash generation relative to net income, indicating healthy cash flow capabilities. The free cash flow to net income ratio is 4.27, demonstrating efficient conversion of income into free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.21B	6.59B	6.06B	4.93B	5.34B
Gross Profit	2.85B	2.49B	2.23B	1.96B	2.26B
EBITDA	1.61B	1.18B	1.16B	922.47M	1.37B
Net Income	156.92M	59.31M	208.28M	265.33M	618.55M
Balance Sheet
Total Assets	21.41B	21.44B	21.53B	19.23B	15.27B
Cash, Cash Equivalents and Short-Term Investments	1.00B	645.72M	591.24M	2.68B	590.51M
Total Debt	10.09B	10.12B	9.75B	9.32B	6.91B
Total Liabilities	12.80B	13.47B	13.08B	11.09B	8.55B
Stockholders Equity	5.88B	5.83B	6.13B	6.10B	5.11B
Cash Flow
Free Cash Flow	669.63M	-87.14M	-386.43M	281.89M	747.78M
Operating Cash Flow	902.17M	208.28M	-10.87M	596.98M	1.11B
Investing Cash Flow	886.67M	-397.64M	-1.98B	-29.39M	-858.12M
Financing Cash Flow	-1.36B	186.04M	-173.49M	1.47B	-354.40M

Grifols Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GRF, the sentiment is Positive. The current price of 12.02 is above the 20-day moving average (MA) of 10.85, above the 50-day MA of 10.13, and above the 200-day MA of 9.52, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 82.17 is Negative, neither overbought nor oversold. The STOCH value of 88.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:GRF.

Grifols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRF	73 Outperform	€7.35B	42.60	3.37%	―	10.76%	3.13%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
0O9B	―	€2.28B	223.33	0.69%	1.48%	―	―
0K9H	―	€1.41B	12.69	16.04%	6.11%	―	―
0RB1	―	€243.38M	22.12	5.11%	1.64%	―	―
0ILL	―	€2.75B	19.54	25.24%	1.40%	―	―
PHMMF	―	$1.68B	77.92	10.15%	0.97%	―	―

Grifols Corporate Events

Grifols Exceeds Q1 2025 Forecasts with Strong Revenue and Profit Growth

Grifols reported a strong financial performance in the first quarter of 2025, exceeding forecasts with a 7.4% increase in revenues and a 14.2% rise in adjusted EBITDA. The company’s strategic execution and robust demand in the Biopharma sector contributed to a 179% growth in net profit and improved free cash flow by 209 million euros. Despite a temporary dip in albumin sales due to license renewal in China, Grifols maintained a solid liquidity position and reduced its leverage ratio, positioning itself for sustained growth in 2025.

The most recent analyst rating on (ES:GRF) stock is a Buy with a EUR22.00 price target. To see the full list of analyst forecasts on Grifols stock, see the ES:GRF Stock Forecast page.

Grifols Receives Approval for Biotest Acquisition Offer

Grifols has announced that its subsidiary, Grifols Biotest Holdings GmbH, has received approval from the German Federal Financial Supervisory Authority for its public acquisition offer to delist Biotest AG. The offer aims to acquire all ordinary and non-voting preferred shares of Biotest not already held by Grifols, with the acceptance period running until June 6, 2025. This strategic move is expected to strengthen Grifols’ position in the biopharmaceutical industry and could have significant implications for shareholders and market dynamics.

Grifols Announces Agenda for 2025 Shareholders’ Meeting

Grifols, S.A. has announced its Ordinary General Shareholders’ Meeting scheduled for June 2025, where key agenda items include the examination and approval of financial statements, the appointment of Deloitte Auditores, S.L. for sustainability verification, and changes to the Board of Directors. The meeting will also address the approval of a new remuneration policy and a 2025 Share Incentive Plan, alongside authorizations for treasury share acquisitions and potential extraordinary meetings, reflecting the company’s ongoing efforts to enhance governance and shareholder engagement.