LABORATORIO REIG JOFRE (RJF) AI Stock Analysis

• Market Cap: €196.83M
• Dividend Yield: 1.91%
• Average Volume (3M): 44.99K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.28
• Revenue Growth: -1.19%
• EPS Growth: -54.66%
• Country: ES
• Employees: 1,331
• Sector: General
• Sector Strength: N/A
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 82,219,240
• 10 Day Avg. Volume: 48,066
• 30 Day Avg. Volume: 44,988
• PEG Ratio: -0.79
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -15.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): €349.90M

• Rating: 46 Neutral
• Price Target: €2.50 ▼(-6.72% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is weighed down primarily by the 2025 financial setback—sharp revenue decline, heavily compressed margins, and a swing to negative free cash flow—alongside increased leverage. Technicals add further pressure with a clear downtrend and negative momentum. Valuation is also a headwind due to a high P/E, only partly offset by a modest dividend yield.

Positive Factors

Diversified revenue model and partnerships

A diversified commercial mix—direct sales to providers, pharmacies and hospitals plus partnerships and licensing—reduces single-market concentration. Strategic collaborations and licensing create durable channels for product distribution, technology access and potential royalty streams over the medium term.

Multi-year revenue expansion (2020–2024)

Steady revenue expansion through 2024 reflects sustained product adoption and distribution reach prior to 2025. That multi-year growth indicates an established commercial footprint and market penetration that can provide a platform for recovery and mid-term revenue stability if operational issues are addressed.

Stable historical EBITDA margins (~10–11%)

Relatively stable EBITDA margins before 2025 suggest underlying manufacturing scale and cost control in core operations. This structural operating efficiency implies the company can restore profitability if volumes and pricing normalize, supporting durable earnings power over several months.

Negative Factors

2025 sharp revenue contraction

A ~20% revenue decline in 2025 materially reduces scale and breaks operating leverage, pressuring margins and net income. Such a large single-year drop may reflect structural demand loss, competitive displacement, or product issues that could take multiple quarters to correct and hamper long-term recovery.

Free cash flow turned sharply negative in 2025

A sharply negative FCF position drains liquidity and curtails the firm's ability to fund R&D, capex, or dividends internally. Combined with a history of FCF volatility, this increases reliance on external financing, raises refinancing risk, and limits flexibility to execute strategic initiatives over the medium term.

Rising leverage in 2025

Leverage increased meaningfully in 2025, reducing financial flexibility and amplifying earnings sensitivity to weak results. With margins compressed and cash flow impaired, higher debt levels raise interest and refinancing risks and constrain the company’s ability to invest in recovery or pursue opportunistic partnerships.

LABORATORIO REIG JOFRE Business Overview & Revenue Model

Company Description

Laboratorio Reig Jofre, S.A., a pharmaceutical company, researches, develops, manufactures, and markets pharmaceutical products and food supplements. The company offers prescription medicines, OTCs, medical devices, and cosmetics. Its products include pharmaceutical technologies products, such as antibiotics, and injectable and other products; specialty pharmacare products, which include skin, hair, and nail health, joint health and pain, women's health, respiratory/ENT, and pediatrics; and consumer healthcare products under the Forté Pharma brand. The company also provides CDMO and CMO services. It sells its products directly in 7 countries and through business partners in approximately 70 countries. The company was founded in 1929 and is based in Sant Joan Despí, Spain. Laboratorio Reig Jofre, S.A. is a subsidiary of Reig Jofre Investments SL.

How the Company Makes Money

Laboratorio Reig Jofre generates revenue primarily through the sale of pharmaceutical products, which includes both prescription medications and over-the-counter drugs. The company has a diversified revenue model that incorporates direct sales to healthcare providers, pharmacies, and hospitals. Additionally, RJF engages in partnerships and collaborations with other pharmaceutical companies and research institutions, allowing it to expand its product offerings and access new markets. Licensing agreements and the development of proprietary drugs also contribute to its earnings, alongside potential royalties from successful product launches. The company's focus on R&D and strategic alliances further enhances its ability to introduce innovative therapies, driving growth and profitability.

LABORATORIO REIG JOFRE Financial Statement Overview

Summary

Financials weakened materially in 2025: revenue contracted sharply (-20.3%) and profitability compressed significantly (operating and net margins ~1.7%/~1.5%). Cash flow is the biggest concern, with operating cash flow dropping to ~€1.5M and free cash flow turning sharply negative (~-€13.8M). Balance-sheet leverage remains moderate but has risen (debt-to-equity ~0.45 in 2025), adding risk amid weaker earnings and cash conversion.

Income Statement

Revenue expanded steadily from 2020–2024, but 2025 saw a sharp contraction (-20.3%), signaling a meaningful near-term demand or pricing headwind. Profitability is mixed: EBITDA margins have been fairly stable around ~10–11% through 2024, but 2025 deteriorated materially with much lower operating and net margins (~1.7% and ~1.5%). Net income also fell notably versus prior years, indicating weaker operating leverage and/or higher costs in the latest period.

Balance Sheet

Leverage is generally moderate, with debt-to-equity mostly in the ~0.26–0.36 range historically, though 2025 rose to ~0.45 as debt increased. Equity has grown gradually over time, supporting balance-sheet resilience. Returns on equity are positive but modest (roughly ~3–5% in 2020–2024) and weakened in 2025 (~2.3%), suggesting profitability is currently not strong enough to consistently drive high shareholder returns.

Cash Flow

Cash generation weakened significantly in 2025: operating cash flow fell to ~€1.5M and free cash flow turned sharply negative (~-€13.8M), indicating earnings quality and/or working-capital and investment pressures. In 2022–2024, the company produced consistently positive free cash flow, but the track record is not stable (notably negative in 2021 and again in 2025). This volatility increases risk, particularly given the higher debt level in the latest year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	415.66M	331.10M	338.89M	316.09M	271.15M	236.23M
Gross Profit	244.01M	81.71M	195.68M	176.89M	69.58M	144.98M
EBITDA	38.46M	30.48M	36.18M	33.89M	30.44M	24.66M
Net Income	8.86M	5.02M	10.38M	9.41M	8.11M	5.09M
Balance Sheet
Total Assets	357.56M	396.56M	344.85M	330.55M	321.19M	324.98M
Cash, Cash Equivalents and Short-Term Investments	10.84M	10.50M	16.08M	6.36M	6.88M	5.16M
Total Debt	67.06M	98.53M	58.52M	53.49M	61.24M	67.38M
Total Liabilities	141.17M	170.24M	130.90M	126.29M	126.64M	136.46M
Stockholders Equity	216.42M	218.07M	213.97M	204.35M	194.63M	188.59M
Cash Flow
Free Cash Flow	0.00	-13.78M	10.56M	6.34M	4.75M	-5.26M
Operating Cash Flow	0.00	1.51M	31.34M	19.11M	16.15M	14.50M
Investing Cash Flow	0.00	-17.82M	-31.96M	-12.88M	-12.72M	-34.70M
Financing Cash Flow	0.00	16.31M	5.59M	-7.16M	-2.04M	13.67M

LABORATORIO REIG JOFRE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:RJF, the sentiment is Negative. The current price of 2.68 is above the 20-day moving average (MA) of 2.61, above the 50-day MA of 2.65, and below the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 27.56 is Positive, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:RJF.

LABORATORIO REIG JOFRE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROVI	72 Outperform	€4.06B	23.13	20.70%	1.50%	-9.39%	-25.92%
ALM	59 Neutral	€2.54B	35.12	1.45%	1.22%	13.32%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FAE	51 Neutral	€1.46B	20.17	18.13%	3.51%	11.04%	8.29%
RJF	46 Neutral	€196.83M	41.66	2.03%	1.91%	-1.19%	-54.66%
ORY	46 Neutral	€219.21M	-88.77	-2.58%	―	―	36.23%
ATRY	42 Neutral	€205.90M	-5.25	-9.43%	―	15.90%	37.03%