Recordati Industria Chimica e Farmaceutica SPA (REC) AI Stock Analysis

• Market Cap: €10.97B
• Dividend Yield: 2.39%
• Average Volume (3M): 355.71K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.61
• Revenue Growth: 12.85%
• EPS Growth: 7.34%
• Country: IT
• Employees: 4,580
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.60
• Shares Outstanding: 209,125,150
• 10 Day Avg. Volume: 333,366
• 30 Day Avg. Volume: 355,707
• PEG Ratio: -13.24
• Price to Book (P/B): 5.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.70
• 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: €54.50
• Price Target Upside: 2.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: €58.00 ▲(9.13%Upside)

Recordati Industria Chimica e Farmaceutica SPA maintains a solid financial foundation with strong income growth and cash flows, which form the backbone of its stock score. Technical analysis shows a stable stock with neutral momentum, while valuation suggests potential overvaluation. The absence of recent earnings call data or corporate events leaves these aspects neutral in the overall assessment.

Recordati Industria Chimica e Farmaceutica SPA Business Overview & Revenue Model

Company Description

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, marketing, and sale of pharmaceuticals worldwide. The company offers pharmaceuticals in various therapeutic areas, including cardiovascular, dermatology, over the counter/non-prescription pharmaceuticals, urology, anti-infectives, central nervous system, gastrointestinal, gynecology and obstetrics, musculo-skeletal disorders and analgesia, nutrition and related products, cosmetics, dietary supplements, medical devices, allergy, endocrinology, respiratory, pain management/inflammation, generics, antipyretics and cold preparations, and oncology, as well as ear, nose, and throat. It also provides products for rare diseases; and pharmaceutical chemicals, such as chemical syntheses, active pharmaceutical ingredients, and intermediates. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.

How the Company Makes Money

Recordati makes money primarily through the sale of pharmaceutical products across several therapeutic segments. The company's revenue model is based on the production and global distribution of both proprietary and licensed pharmaceuticals. Key revenue streams include sales from specialty and primary care pharmaceuticals, over-the-counter products, and orphan drugs for rare diseases. Recordati also generates income through strategic partnerships and collaborations with other pharmaceutical companies, which may include co-development and co-marketing agreements. Additionally, the company benefits from its investments in research and development, leading to the introduction of new and innovative products to the market, thereby expanding its revenue base.

Recordati Industria Chimica e Farmaceutica SPA Financial Statement Overview

Summary

Recordati Industria Chimica e Farmaceutica SPA is financially robust, with strong income growth, solid cash flow, and effective debt management, despite high liabilities.

Income Statement

Recordati Industria Chimica e Farmaceutica SPA demonstrates strong financial performance with consistent revenue growth and robust profit margins. The gross profit margin has remained solidly above 60%, and the net profit margin has improved, reaching 17.8% in 2024, indicating effective cost management and profitability. Revenue growth is notable, with a 12.5% increase from 2023 to 2024. EBIT and EBITDA margins are healthy, contributing to an overall strong income statement.

Balance Sheet

The company's balance sheet reflects a solid equity base with an equity ratio of 36.5%, providing financial stability. The debt-to-equity ratio has significantly improved due to a reduction in total debt and an increase in stockholders' equity, indicating strengthened financial leverage. Return on equity is strong at 22.2%, signifying effective utilization of shareholder funds. However, the total liabilities remain relatively high compared to total assets, which poses a potential risk.

Cash Flow

Recordati has shown impressive growth in free cash flow, with a significant increase from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating high cash generation from operations relative to reported earnings. The free cash flow to net income ratio also suggests efficient cash conversion. However, the company has experienced fluctuations in investing and financing cash flows, which could impact future liquidity if not managed carefully.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.34B	2.08B	1.85B	1.58B	1.45B
	Gross Profit
1.60B	1.42B	1.29B	1.15B	1.04B
	EBIT
638.90M	558.01M	437.33M	490.19M	469.02M
	EBITDA
795.37M	708.16M	559.35M	578.35M	566.83M
	Net Income Common Stockholders
416.51M	389.21M	312.34M	385.97M	354.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
322.42M	221.81M	284.73M	244.58M	188.23M
	Total Assets
5.13B	4.21B	4.00B	2.82B	2.71B
	Total Debt
22.84M	1.81B	1.72B	992.19M	1.06B
	Net Debt
-299.58M	1.59B	1.43B	747.61M	872.83M
	Total Liabilities
3.26B	2.52B	2.45B	1.43B	1.44B
	Stockholders Equity
1.88B	1.69B	1.55B	1.38B	1.28B
Cash Flow		Free Cash Flow
535.10M	102.06M	365.35M	404.29M	271.90M
	Operating Cash Flow
569.92M	485.32M	461.69M	491.65M	403.57M
	Investing Cash Flow
-844.94M	-379.62M	-767.12M	-87.50M	-131.56M
	Financing Cash Flow
372.11M	-168.91M	341.28M	-355.94M	-264.29M

Recordati Industria Chimica e Farmaceutica SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:REC, the sentiment is Positive. The current price of 53.15 is above the 20-day moving average (MA) of 51.63, above the 50-day MA of 50.44, and above the 200-day MA of 51.67, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 90.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:REC.

Recordati Industria Chimica e Farmaceutica SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REC	74 Outperform	€10.97B	26.22	22.02%	2.39%	12.85%	7.34%
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
0GZX		€4.95B	26.85	11.27%	1.33%	―	―
PHN	73 Outperform	€491.79M	29.74		1.97%	17.78%	63.72%
78Q		€657.96M	19.04	39.51%	―	―	―
GHC		€465.06M	20.97	6.75%	1.69%	―	―
SVS		€44.56M	7.95		3.60%	―	―

Recordati Industria Chimica e Farmaceutica SPA Corporate Events

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has announced an update on its share buyback program initiated on April 30, 2025. The company purchased 89,225 shares between May 19 and May 23, 2025, at an average price of 51.3752 Euros per share. This buyback is part of Recordati’s strategy to allocate shares for stock option and performance share plans for its management, reflecting its commitment to incentivizing its leadership and enhancing shareholder value.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR51.00 price target. To see the full list of analyst forecasts on Recordati Industria Chimica e Farmaceutica SPA stock, see the IT:REC Stock Forecast page.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has updated its shareholders on the progress of its share buyback program, initiated on April 30, 2025. The program, which aims to purchase shares for stock option and performance share plans, saw the acquisition of 88,677 ordinary shares between May 12 and May 16, 2025, reflecting the company’s strategic focus on incentivizing management and aligning with future incentive plans.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR51.00 price target. To see the full list of analyst forecasts on Recordati Industria Chimica e Farmaceutica SPA stock, see the IT:REC Stock Forecast page.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has updated its stakeholders on the execution of its share buyback program, which was initiated on April 30, 2025. The program aims to purchase shares to support stock options and performance share plans for the management of the Recordati Group. As of May 9, 2025, Recordati has purchased 2,329 ordinary shares at a weighted average price of €52.5512 each, and now holds 3,136,086 own shares, representing 1.500% of its share capital. This strategic move is expected to enhance the company’s incentive plans and align management interests with those of shareholders.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR51.00 price target. To see the full list of analyst forecasts on Recordati Industria Chimica e Farmaceutica SPA stock, see the IT:REC Stock Forecast page.

Recordati Reports Strong Q1 2025 Results with Double-Digit Revenue Growth

Recordati has reported strong financial performance in the first quarter of 2025, with consolidated net revenues increasing by 11.9% to €680.0 million. The company’s growth is driven by robust performance in its Specialty & Primary Care and Rare Diseases segments, with significant contributions from the extension of Isturisa’s indication and the approval of Signifor LAR in China. The company maintains its financial targets for 2025 and anticipates continued momentum through 2027, supported by strategic growth initiatives and disciplined cost management.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has updated its shareholders on the execution of its share buyback program, initiated on April 30, 2025, following a resolution from the Shareholders’ Meeting. The program aims to purchase shares to service stock options and performance share plans for the company’s management. As of May 2, 2025, Recordati has acquired 3,103 shares, bringing its total to 3,133,757 own shares, which is 1.499% of its share capital. This strategic move is part of Recordati’s broader efforts to enhance shareholder value and support its incentive plans.

Recordati Releases Shareholders’ Meeting Voting Summary

Recordati has released the summary report of the voting results from its Ordinary Shareholders’ Meeting held on April 29, 2025. This report is accessible on the company’s website and through an authorized storage mechanism, reflecting the company’s commitment to transparency and shareholder engagement.

Recordati Launches Share Buyback Program to Support Management Incentives

Recordati S.p.A. has announced a program to purchase up to 2,000,000 of its own shares to support stock option and performance share plans for its management. The program, managed by UBS Europe SE, will run until November 7, 2025, with a maximum countervalue of €125 million, aiming to enhance management incentives and potentially impact the company’s market positioning.

Recordati Approves 2024 Financials and Appoints New Board

Recordati S.p.A. announced the approval of its 2024 financial statements and a dividend increase to €1.27 per share, reflecting a 5.8% rise from the previous year. Additionally, a new Board of Directors was appointed for the 2025-2027 period, with Andrea Recordati and Robert Koremans confirmed as Chairman and CEO, respectively. The company also renewed its authorization to purchase and dispose of treasury shares and approved a new share purchase program to support stock option and performance share plans.

FDA Approves Expanded Use of Recordati’s ISTURISA® for Cushing’s Syndrome

Recordati announced that the FDA has approved the supplemental new drug application for ISTURISA® (osilodrostat) to treat endogenous hypercortisolemia in adults with Cushing’s syndrome who cannot undergo surgery or for whom surgery has not been successful. This approval expands the previous indication for the treatment of patients with Cushing’s disease, a subtype of Cushing’s syndrome, and is supported by a comprehensive clinical development program involving over 350 patients. The extension of ISTURISA®’s indication addresses an important unmet need and is expected to generate significant added value for Recordati, enhancing its position in the rare diseases segment.

Recordati Discloses Treasury Share Transactions and Buy-Back Program

Recordati has disclosed transactions involving the sale and purchase of treasury shares. The company sold treasury shares directly to beneficiaries of its stock option plans and executed a share buy-back program through UBS Europe SE, which concluded on March 31, 2025. These transactions are part of Recordati’s strategic financial management, potentially impacting its stock liquidity and shareholder value.

Recordati Concludes Share Buyback Program

Recordati S.p.A. has concluded its share buyback program, which began on November 12, 2024, and was aimed at purchasing shares to support stock options and performance share plans for management. The company purchased a total of 1,498,369 shares, representing 0.716% of its share capital, for a total value of 79,476,342.59 Euros. As of March 31, 2025, Recordati holds 3,130,654 own shares, equivalent to 1.497% of its share capital.

Recordati Releases 2024 Financial Documentation Ahead of Shareholders’ Meeting

Recordati has announced the availability of its 2024 Annual Financial Report, including the Draft Financial Statements and Consolidated Financial Statements as of December 31, 2024, along with various management and audit reports. These documents, approved by the Board of Directors, are accessible to the public via the company’s headquarters, website, and authorized storage mechanism. This release is part of the preparations for the Ordinary Shareholders’ Meeting scheduled for April 29, 2025, highlighting the company’s commitment to transparency and governance.

Recordati Publishes Directors’ Report Ahead of Shareholders’ Meeting

Recordati announced the availability of the Directors’ Report related to the appointment of the Board of Directors, ahead of the Ordinary Shareholders’ Meeting scheduled for April 29, 2025. This move underscores the company’s commitment to transparency and governance, potentially impacting its operations and stakeholder relations positively.

Recordati Announces Shareholders Meeting to Discuss Key Financial and Governance Matters

Recordati Industria Chimica e Farmaceutica S.p.A. has announced an Ordinary Meeting of Shareholders scheduled for April 29, 2025. The agenda includes discussions on the financial statements for 2024, the appointment and remuneration of the Board of Directors, and a proposal for the purchase and disposal of treasury shares. This meeting is significant for stakeholders as it will address key governance and financial decisions that could impact the company’s strategic direction and shareholder value.

Recordati Reports Strong 2024 Financial Results and Reaffirms ESG Commitment

Recordati S.p.A. reported strong financial results for 2024, with net revenues of €2,341.6 million, a 12.4% increase from the previous year, driven by growth in both specialty and primary care and rare diseases segments. The company proposed a dividend of €1.27 per share and reaffirmed its commitment to ESG objectives, including reducing emissions and enhancing sustainability practices, which are recognized by major ESG indices and ratings.

Recordati Updates on Share Buyback Program Progress

Recordati has updated its shareholders on the progress of its share buyback program, which was initiated to support stock options and performance share plans for its management. Between March 3 and March 7, 2025, the company purchased 139,592 of its ordinary shares, holding a total of 2,942,785 own shares, equivalent to 1.407% of its share capital. This move is part of Recordati’s strategy to enhance shareholder value and align management incentives with company performance.

Recordati Updates Share Buyback Program

Recordati S.p.A. has updated its share buyback program, which began in November 2024, to support its stock options and performance shares plans. The company purchased 78,762 ordinary shares in late February 2025, holding 2,803,193 shares by the end of the month, representing 1.340% of its share capital.