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Grifols SA (GRFS)
:GRFS
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Grifols SA
(NASDAQ:GRFS)
Rating:65Neutral
Price Target:
$9.50
▲(5.56%Upside)
Grifols SA (GRFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.51B
Dividend YieldN/A
Average Volume (3M)652.16K
Price to Earnings (P/E)29.7
Beta (1Y)1.03
Revenue Growth9.67%
EPS Growth1.92%
CountryUS
Employees23,833
SectorHealthcare
Sector Strength47
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.09
Shares Outstanding261,425,100
10 Day Avg. Volume661,268
30 Day Avg. Volume652,157
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio-13.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.30Price Target Upside14.44% Upside
Rating ConsensusHold
Number of Analyst Covering1
Grifols SA Business Overview & Revenue Model
Company DescriptionGrifols, 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 continuumfrom prevention, screening, diagnosis, and prognosis to disease and treatment monitoringto 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 MoneyGrifols SA primarily generates revenue through the sale of plasma-derived therapies, which are produced by its Bioscience division. This division is the largest contributor to the company's revenue, driven by the demand for its products in treating conditions such as hemophilia, primary immunodeficiencies, and alpha-1 antitrypsin deficiency. The Diagnostic division provides revenue through the sale of equipment and reagents used in blood testing and transfusion medicine. The Hospital division offers products for hospital pharmacy services, including solutions for intravenous therapy and clinical nutrition. Additionally, Grifols earns money through its Bio Supplies division, which supplies biological products for non-therapeutic use. Strategic partnerships with healthcare providers and research institutions, as well as investments in R&D, also play a vital role in sustaining and growing the company's revenue.
Grifols SA Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 26.76%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
Grifols reported strong Q1 2025 performance with record revenue and growth, particularly in the immunoglobulin franchise. Despite challenges like negative free cash flow due to a strategic payment and temporary albumin issues, the company showed robust adjusted EBITDA and continued deleveraging efforts. The results are ahead of plan even amidst macroeconomic uncertainties and IRA impacts.Q1-2025 Updates
Positive Updates
Record Revenue and Growth in Q1 2025
Revenue in Q1 2025 reached EUR1.786 billion, a 7.4% increase on a constant currency basis. On a like-for-like basis, revenue increased by 10%.
Strong Adjusted EBITDA Performance
Adjusted EBITDA reached EUR400 million, an improvement of 14.2% at constant currency. Like-for-like, it grew by close to 22%.
Impressive Growth in Immunoglobulin Franchise
The immunoglobulin franchise achieved 17.5% growth in revenue at constant currency and like-for-like, with subcutaneous IG growing an impressive 91% at constant currency.
Improvement in Free Cash Flow
Free cash flow for the quarter was negative EUR44 million, but there was a year-on-year improvement of more than EUR200 million.
Continued Deleveraging
Leverage improved slightly from 4.6 times to under 4.5 times, marking a priority for the company.
Negative Updates
Negative Free Cash Flow Due to Strategic Payment
Free cash flow was negative EUR44 million, primarily due to a EUR79 million payment to ImmunoTek.
Temporary Albumin and Rabies Phasing Challenges
The phasing in albumins and rabies put some pressure on gross margin and EBITDA in Q1 '25.
Impact of IRA on Financial Performance
The difference between like-for-like and reported figures amounted to EUR43 million, with EUR28 million attributable to the IRA.
Albumin Sales Temporarily Affected
Albumin sales growth was temporarily affected by a standard license renewal process in China, resulting in a decline of 8.9% on a like-for-like basis.
Company Guidance
During the Q1 2025 earnings call, Grifols executives highlighted a robust start to the fiscal year, reporting revenue of EUR 1.786 billion—a 7.4% increase on a constant currency basis, which rises to 10% on a like-for-like basis. Adjusted EBITDA reached EUR 400 million, marking a 14.2% increase at constant currency and nearly 22% like-for-like. Despite a negative free cash flow of EUR 44 million, attributed to a EUR 79 million payment to ImmunoTek, the company achieved a year-on-year improvement in free cash flow by over EUR 200 million. The revenue growth was primarily driven by the biopharma segment, with the immunoglobulin franchise experiencing a 17.5% revenue increase on a constant currency basis. Management reaffirmed their 2025 guidance, anticipating continued revenue growth, enhanced profitability, and free cash flow improvements, underpinned by strategic initiatives and market dynamics.Grifols SA Financial Statement Overview
Summary
Grifols SA shows strong revenue growth and improved operating margins. However, a low net profit margin and high leverage pose risks. Despite strong cash flow generation, further enhancement is needed for financial stability.Income Statement
Grifols SA demonstrates strong revenue growth with a 9.41% increase from 2023 to 2024. The gross profit margin improved to 38.74%, indicating efficient cost management. However, the net profit margin remains relatively low at 2.18%, suggesting potential cost or operational inefficiencies. The EBIT margin increased to 16.53%, reflecting better operating performance.72
Positive
Balance Sheet
The debt-to-equity ratio of 1.71 indicates a high level of leverage, which could pose risks if not managed properly. Return on equity is modest at 2.67%, suggesting room for improvement in profitability. The equity ratio of 27.49% highlights a stable asset base supported by equity, though there is reliance on debt.65
Positive
Cash Flow
Grifols SA shows a significant improvement in free cash flow, turning positive in 2024. The operating cash flow to net income ratio of 5.75 reflects strong cash generation capacity relative to net profits. However, the free cash flow to net income ratio of 3.38 indicates that cash flow improvements are still needed to enhance financial flexibility.68
Positive
| 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 | 2.79B | 2.32B | 2.23B | 1.96B | 2.26B |
| EBITDA | 1.48B | 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 | 544.50M | 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 | 530.80M | -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 SA Technical Analysis
Positive
9.00
Price Trends
8.12
Positive
7.81
Positive
7.98
Positive
Market Momentum
0.22
Positive
64.57
Neutral
93.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRFS, the sentiment is Positive. The current price of 9 is above the 20-day moving average (MA) of 8.82, above the 50-day MA of 8.12, and above the 200-day MA of 7.98, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 64.57 is Neutral, neither overbought nor oversold. The STOCH value of 93.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRFS.
Grifols SA Risk Analysis
Grifols SA disclosed 53 risk factors in its most recent earnings report. Grifols SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grifols SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $142.36B | 18.15 | 8.62% | 6.87% | 13.38% | ― | |
71 Outperform | $138.98B | 23.49 | 32.51% | 2.83% | 4.63% | 1144.01% | |
67 Neutral | $119.58B | 20.41 | 7.34% | 4.51% | -4.57% | 2.96% | |
66 Neutral | $78.51B | 19.98 | 22.26% | 4.41% | 4.17% | -29.96% | |
65 Neutral | $7.51B | 29.71 | 3.34% | ― | 9.67% | 1.92% | |
63 Neutral | $96.69B | 17.84 | 31.99% | 5.22% | 4.62% | ― | |
51 Neutral | $7.55B | 0.30 | -61.90% | 2.27% | 17.11% | 1.58% |
* Healthcare Sector Average
Performance Comparison
GRFS
Grifols SA
9.14
2.50
37.65%
BMY
Bristol-Myers Squibb
47.63
9.45
24.75%
GILD
Gilead Sciences
111.51
47.00
72.86%
GSK
GlaxoSmithKline
38.51
1.64
4.45%
PFE
Pfizer
25.32
-0.64
-2.47%
SNY
Sanofi
49.31
1.96
4.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.