Grifols (GRF) AI Stock Analysis

• Market Cap: €6.74B
• Dividend Yield: 1.39%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.09
• Revenue Growth: 7.31%
• EPS Growth: 158.58%
• Country: ES
• Employees: 23,833
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.19
• Shares Outstanding: 426,129,800
• 10 Day Avg. Volume: 1,216,950
• 30 Day Avg. Volume: 1,090,725
• PEG Ratio: 0.24
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 9.29
• 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: €10.60
• Price Target Upside: -2.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €11.50 ▲(6.28% Upside)

Grifols' overall stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency. However, high leverage poses a risk to financial flexibility. Technical indicators suggest a bearish trend, and the valuation is fair but not compelling. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Grifols' plasma-derived therapies, supporting long-term business expansion and market presence.

Cash Flow Improvement

Improved cash flow highlights better financial management, enhancing Grifols' ability to invest in growth opportunities and manage debt obligations.

Operational Efficiency

Improved operational efficiency suggests effective cost management and scalability, contributing to sustainable profitability and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risks by increasing interest obligations and limiting financial flexibility, potentially affecting long-term stability.

Net Profit Margin Pressure

Low net profit margins indicate challenges in converting revenue growth into net income, which could impact future profitability and shareholder returns.

Debt Reliance

Reliance on debt financing can increase financial vulnerability, especially in economic downturns, affecting Grifols' long-term financial health.

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 plasma-derived medicines, which are crucial for treating various health conditions. The company collects plasma from donors and processes it into therapies that generate significant income. Key revenue streams include the sale of immunoglobulin, clotting factors, and albumin. Additionally, Grifols earns revenue from its Diagnostic and Hospital divisions through the sale of diagnostic products, laboratory services, and hospital supplies. Strategic partnerships with healthcare providers and blood centers enhance its operational efficiency and product distribution, further contributing to its earnings. The company also invests in research and development to innovate and expand its product offerings, which plays a vital role in driving future revenue growth.

Grifols Financial Statement Overview

Summary

Grifols exhibits strong revenue growth and improved cash flow metrics, with a significant improvement in free cash flow. However, the net profit margin is constrained, and the high debt-to-equity ratio poses 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.52B	7.21B	6.59B	6.06B	4.93B	5.34B
Gross Profit	3.05B	2.85B	2.49B	2.23B	1.96B	2.26B
EBITDA	1.70B	1.61B	1.18B	1.21B	944.03M	1.42B
Net Income	372.72M	156.92M	59.31M	208.28M	265.33M	618.55M
Balance Sheet
Total Assets	19.85B	21.41B	21.44B	21.53B	19.23B	15.27B
Cash, Cash Equivalents and Short-Term Investments	825.48M	1.00B	645.72M	591.24M	2.68B	590.51M
Total Debt	1.08B	10.09B	10.12B	9.75B	9.32B	6.91B
Total Liabilities	12.31B	12.80B	13.47B	13.08B	11.09B	8.55B
Stockholders Equity	5.18B	5.88B	5.83B	6.13B	6.10B	5.11B
Cash Flow
Free Cash Flow	851.18M	669.63M	-87.14M	-386.43M	281.89M	747.78M
Operating Cash Flow	1.13B	902.17M	208.28M	-10.87M	596.98M	1.11B
Investing Cash Flow	-732.88M	886.67M	-397.64M	-1.98B	-29.39M	-858.12M
Financing Cash Flow	-354.09M	-1.36B	186.04M	-173.49M	1.47B	-354.40M

Grifols Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.82
• 50DMA: Negative
• 100DMA: Negative
• 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:GRF, the sentiment is Neutral. The current price of 10.82 is above the 20-day moving average (MA) of 10.51, below the 50-day MA of 11.19, and above the 200-day MA of 10.62, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:GRF.

Grifols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	78 Outperform	€1.46B	13.86	14.89%	3.82%	11.04%	8.29%
ROVI	70 Outperform	€2.98B	22.67	20.70%	1.55%	-9.39%	-25.92%
RJF	65 Neutral	€221.33M	49.72	2.03%	1.75%	-1.19%	-54.66%
GRF	63 Neutral	€6.74B	25.38	5.53%	1.39%	7.31%	158.58%
ALM	61 Neutral	€2.61B	121.80	1.45%	1.22%	13.32%	―
PHM	56 Neutral	$1.31B	38.26	17.22%	1.05%	7.35%	5375.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%