Grifols (GRF) AI Stock Analysis

• Market Cap: €6.87B
• Dividend Yield: 1.33%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.10
• Revenue Growth: 9.32%
• EPS Growth: 95.66%
• Country: ES
• Employees: 23,833
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.17
• Shares Outstanding: 426,129,800
• 10 Day Avg. Volume: 1,216,950
• 30 Day Avg. Volume: 1,090,725
• 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: €12.00
• Price Target Upside: 3.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: €12.00 ▲(3.99% Upside)

Grifols' overall stock score is driven primarily by its strong financial performance, particularly in revenue growth and cash flow improvements. However, the high leverage on the balance sheet and bearish technical indicators weigh down the score. The valuation suggests the stock might be overvalued, further impacting 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 primarily through the sale of its plasma-derived therapies, which are essential for treating various medical conditions. The company has established a robust network of plasma collection centers, which ensure a steady supply of raw materials for its products. Key revenue streams include the sale of immunoglobulins, albumin, and clotting factors, as well as diagnostic products and services. Additionally, Grifols has formed significant partnerships with healthcare institutions and organizations, enhancing its market reach and contributing to its earnings. The company's commitment to research and development also allows it to innovate and expand its product offerings, thereby driving growth and profitability.

Grifols Financial Statement Overview

Summary

Grifols shows strong revenue growth and improved cash flow metrics. Profitability margins are healthy, but the net profit margin remains constrained. The balance sheet reflects high leverage, which may pose future financial risks, but current cash flow improvements provide a positive outlook.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.45B	7.21B	6.59B	6.06B	4.93B	5.34B
Gross Profit	3.03B	2.85B	2.49B	2.23B	1.96B	2.26B
EBITDA	1.67B	1.61B	1.18B	1.16B	922.47M	1.37B
Net Income	297.45M	156.92M	59.31M	208.28M	265.33M	618.55M
Balance Sheet
Total Assets	19.77B	21.41B	21.44B	21.53B	19.23B	15.27B
Cash, Cash Equivalents and Short-Term Investments	565.80M	1.00B	645.72M	591.24M	2.68B	590.51M
Total Debt	8.82B	10.09B	10.12B	9.75B	9.32B	6.91B
Total Liabilities	12.17B	12.80B	13.47B	13.08B	11.09B	8.55B
Stockholders Equity	5.17B	5.88B	5.83B	6.13B	6.10B	5.11B
Cash Flow
Free Cash Flow	811.20M	669.63M	-87.14M	-386.43M	281.89M	747.78M
Operating Cash Flow	1.10B	902.17M	208.28M	-10.87M	596.98M	1.11B
Investing Cash Flow	-806.60M	886.67M	-397.64M	-1.98B	-29.39M	-858.12M
Financing Cash Flow	-1.77B	-1.36B	186.04M	-173.49M	1.47B	-354.40M

Grifols Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GRF, the sentiment is Negative. The current price of 11.54 is below the 20-day moving average (MA) of 12.00, below the 50-day MA of 12.10, and above the 200-day MA of 10.32, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 34.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:GRF.

Grifols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	―	€1.40B	13.30	14.89%	3.97%	11.04%	8.29%
ROVI	―	€3.03B	23.07	25.44%	1.46%	-3.73%	-7.56%
RJF	―	€242.56M	36.58	3.04%	1.65%	0.58%	-30.60%
GRF	―	€6.87B	25.85	5.53%	1.33%	9.32%	95.66%
ALM	―	€2.71B	126.20	1.45%	1.25%	13.32%	―
PHM	―	$1.32B	31.10	21.61%	1.07%	19.18%	―
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%