LABORATORIO REIG JOFRE (RJF) AI Stock Analysis

• Market Cap: €224.60M
• Dividend Yield: 1.91%
• Average Volume (3M): 44.99K
• Price to Earnings (P/E): 50.5
• Beta (1Y): 0.21
• 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): <0.01
• Shares Outstanding: 82,219,240
• 10 Day Avg. Volume: 48,066
• 30 Day Avg. Volume: 44,988
• PEG Ratio: 2.30
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 18.88
• 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): 0.2
• Revenue Forecast (FY): €305.62M

• Rating: 65 Neutral
• Price Target: €3.00 ▲(11.94% Upside)

The overall stock score is driven primarily by strong financial performance, which indicates robust revenue and profit growth, solid balance sheet, and healthy cash flow. However, technical analysis suggests potential short-term weakness, and the valuation indicates the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash generation

Strong operating cash flow and 66% free-cash-flow growth provide durable funding for R&D, capex and potential acquisitions without heavy reliance on debt. That cash resilience supports long-term pipeline investment, regulatory compliance and flexibility through industry cycles.

Balance sheet strength

Low leverage (D/E ~0.27) and a high equity ratio signal conservative capitalization that reduces refinancing and interest-rate risk. This financial stability supports sustained investment in manufacturing capacity and regulatory processes critical for durable pharma operations and growth.

Diversified revenue model

A mix of prescription and OTC sales, partnerships, licensing and royalties diversifies cash flow sources and lowers product concentration risk. Structurally this supports steadier revenues, enables access to new markets via alliances, and underpins long-term product pipeline monetization.

Negative Factors

EPS deterioration

A steep EPS decline (~-55%) points to meaningful earnings volatility or one-off charges that weaken core profitability. Persistently depressed EPS can erode reinvestment capacity, constrain capital allocation and reduce financial flexibility over multiple quarters.

Thin profitability margins

Low net and operating margins limit the firm's ability to absorb cost inflation or price pressure, reducing free cash available for R&D and expansion. Structurally thin margins make long-term earnings generation sensitive to competitive and input-cost shifts in the pharma sector.

Modest return on equity

ROE near 4.85% indicates modest capital efficiency relative to many pharmaceutical peers. Over time, lower returns can pressure management to pursue higher-risk growth or capital raises, potentially diluting shareholders or increasing strategic execution risk.

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

LABORATORIO REIG JOFRE displays robust financial performance with consistent revenue and profit growth. The balance sheet is strong with manageable leverage and solid equity. Cash flow generation is healthy, providing ample liquidity for operations and investments. The company demonstrates strong financial health and growth potential in the Pharmaceuticals industry.

Income Statement

The company has demonstrated a strong revenue growth trajectory, with a notable increase from €316.09M to €338.90M year-over-year, marking a 7.22% growth rate. Gross Profit Margin is healthy at 57.73%, indicating efficient cost management. The Net Profit Margin improved to 3.06%, reflecting better profitability. EBIT and EBITDA margins are stable at 3.72% and 10.68% respectively, though room for improvement remains.

Balance Sheet

The Debt-to-Equity ratio is reasonable at 0.27, indicating a balanced leverage. Return on Equity is moderate at 4.85%, suggesting efficient asset utilization. The company maintains a good Equity Ratio of 62.06%, supporting financial stability. Overall, the balance sheet reflects sound financial health with manageable debt levels.

Cash Flow

Operating Cash Flow has increased significantly to €31.34M, showcasing strong cash-generating ability. Free Cash Flow to Net Income ratio is 1.02, indicating effective cash management. Free Cash Flow grew by 66.37%, reflecting improved financial flexibility. The company is well-positioned to meet its short-term obligations and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	415.66M	338.89M	316.09M	271.15M	236.23M	230.08M
Gross Profit	244.01M	195.68M	176.89M	69.58M	144.98M	140.40M
EBITDA	38.46M	36.18M	33.89M	30.44M	24.66M	24.31M
Net Income	8.86M	10.38M	9.41M	8.11M	5.09M	5.67M
Balance Sheet
Total Assets	357.56M	344.85M	330.55M	321.19M	324.98M	317.15M
Cash, Cash Equivalents and Short-Term Investments	10.84M	16.08M	6.36M	6.88M	5.16M	11.69M
Total Debt	67.06M	58.52M	53.49M	61.24M	67.38M	57.02M
Total Liabilities	141.17M	130.90M	126.29M	126.64M	136.46M	132.67M
Stockholders Equity	216.42M	213.97M	204.35M	194.63M	188.59M	184.55M
Cash Flow
Free Cash Flow	0.00	10.56M	6.34M	4.75M	-5.26M	6.55M
Operating Cash Flow	0.00	31.34M	19.11M	16.15M	14.50M	22.50M
Investing Cash Flow	0.00	-31.96M	-12.88M	-12.72M	-34.70M	-30.70M
Financing Cash Flow	0.00	5.59M	-7.16M	-2.04M	13.67M	9.62M

LABORATORIO REIG JOFRE Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:RJF, the sentiment is Positive. The current price of 2.68 is above the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.69, and below the 200-day MA of 2.90, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 24.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:RJF.

LABORATORIO REIG JOFRE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	78 Outperform	€1.63B	15.46	14.89%	3.51%	11.04%	8.29%
ROVI	74 Outperform	€3.64B	30.36	20.70%	1.50%	-9.39%	-25.92%
RJF	65 Neutral	€224.60M	50.46	2.03%	1.91%	-1.19%	-54.66%
ALM	60 Neutral	€2.71B	126.20	1.45%	1.22%	13.32%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ORY	48 Neutral	€253.91M	-76.85	-2.87%	―	―	36.23%
ATRY	42 Neutral	€221.86M	-9.02	-9.43%	―	15.90%	37.03%