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

• Market Cap: €10.57B
• Dividend Yield: 2.67%
• Average Volume (3M): 218.69K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.53
• Revenue Growth: 12.58%
• EPS Growth: -4.34%
• Country: IT
• Employees: 4,580
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.79
• Shares Outstanding: 209,125,150
• 10 Day Avg. Volume: 203,691
• 30 Day Avg. Volume: 218,687
• PEG Ratio: 3.64
• Price to Book (P/B): 5.56
• Price to Sales (P/S): 4.46
• P/FCF Ratio: 19.51
• 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: €52.75
• Price Target Upside: 8.14% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €58.00 ▲(18.90% Upside)

Recordati Industria Chimica e Farmaceutica SPA's overall stock score is driven primarily by its solid financial performance, characterized by strong revenue growth and improved financial stability due to reduced debt. However, the high P/E ratio and recent declines in cash flow growth and operational margins are concerns. Technical indicators suggest a neutral to slightly positive market sentiment, but the valuation remains a key risk factor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Recordati's pharmaceutical products, strengthening its market position and supporting long-term business expansion.

Debt Reduction

Reducing debt enhances financial stability, providing Recordati with greater flexibility to invest in growth opportunities and withstand economic fluctuations.

Strong Profit Margins

Strong profit margins reflect efficient operations and pricing power, allowing Recordati to reinvest in R&D and maintain competitive advantages in the pharmaceutical industry.

Negative Factors

Decline in Cash Flow Growth

A decline in cash flow growth can limit Recordati's ability to fund new projects and meet financial obligations, potentially impacting future growth and stability.

Pressure on Operational Margins

Decreasing operational margins suggest rising costs or competitive pressures, which could erode profitability and impact Recordati's long-term financial health.

Cash Generation Concerns

Moderate cash generation relative to net income may constrain Recordati's ability to invest in growth initiatives and manage financial commitments effectively.

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 generates revenue primarily through the sale of its pharmaceutical products, which includes prescription drugs, specialty medicines, and over-the-counter products. The company has established a robust revenue model that encompasses direct sales to healthcare providers, hospitals, and pharmacies across various global markets. Key revenue streams include both proprietary products developed in-house and licensed products from partnerships with other pharmaceutical companies. Recordati's strategy also involves expanding its market presence through strategic acquisitions and collaborations, which enhance its product offering and distribution capabilities. Additionally, the company benefits from ongoing investments in research and development, leading to the introduction of innovative therapies that address unmet medical needs, thereby driving sales growth.

Recordati Industria Chimica e Farmaceutica SPA Financial Statement Overview

Summary

Recordati Industria Chimica e Farmaceutica SPA demonstrates solid financial performance with strong revenue growth and profitability. The significant reduction in debt enhances financial stability, though recent declines in cash flow growth and operational margins warrant attention. Overall, the company maintains a healthy financial position with opportunities for improvement in cash flow management.

Income Statement

Recordati Industria Chimica e Farmaceutica SPA shows strong revenue growth with a TTM growth rate of 2.74%. The company maintains healthy margins with a gross profit margin of 67.79% and a net profit margin of 16.42% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a significant reduction in debt, with a TTM debt-to-equity ratio of 0.04, down from 1.33 in the previous year. This indicates improved financial stability. The return on equity remains strong at 21.43%, showcasing effective use of equity. However, the equity ratio is not explicitly calculated, which could provide additional insights into asset financing.

Cash Flow

The cash flow statement reveals a decrease in free cash flow growth by 5.99% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.54, indicating moderate cash generation relative to net income. The free cash flow to net income ratio of 0.87 suggests that the company is generating sufficient free cash flow relative to its net income, despite the recent decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.34B	2.08B	1.85B	1.58B	1.45B
Gross Profit	1.68B	1.60B	1.42B	1.29B	1.15B	1.04B
EBITDA	818.90M	795.37M	708.16M	559.35M	578.35M	566.83M
Net Income	407.26M	416.51M	389.21M	312.34M	385.97M	354.98M
Balance Sheet
Total Assets	5.18B	5.13B	4.21B	4.00B	2.82B	2.71B
Cash, Cash Equivalents and Short-Term Investments	341.55M	322.42M	221.81M	284.73M	244.58M	188.23M
Total Debt	80.88M	2.49B	1.46B	1.72B	992.19M	1.06B
Total Liabilities	3.31B	3.26B	2.52B	2.45B	1.43B	1.44B
Stockholders Equity	1.87B	1.88B	1.69B	1.55B	1.38B	1.28B
Cash Flow
Free Cash Flow	500.19M	535.10M	102.06M	365.35M	404.29M	271.90M
Operating Cash Flow	574.93M	569.92M	485.32M	461.69M	491.65M	403.57M
Investing Cash Flow	-868.25M	-844.94M	-379.62M	-767.12M	-87.50M	-131.56M
Financing Cash Flow	443.15M	372.11M	-168.91M	341.28M	-355.94M	-264.29M

Recordati Industria Chimica e Farmaceutica SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:REC, the sentiment is Negative. The current price of 48.78 is below the 20-day moving average (MA) of 50.49, below the 50-day MA of 50.87, and below the 200-day MA of 51.33, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
PHIL	70 Outperform	€684.28M	20.57	45.54%	―	3346.54%	―
PHN	68 Neutral	€529.55M	30.09	―	1.83%	12.82%	7.36%
REC	67 Neutral	€10.57B	25.91	21.26%	2.67%	12.58%	-4.34%
DIA	64 Neutral	€4.12B	21.50	12.16%	1.93%	4.69%	15.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Recordati Industria Chimica e Farmaceutica SPA Corporate Events

Recordati Executes Treasury Share Sales Under Stock Option Plans

Recordati has executed transactions involving the sale of treasury shares to beneficiaries of its stock option plans. These transactions, carried out in November 2025, were completed at the exercise prices set when the options were initially granted, reflecting the company’s ongoing commitment to its stock option program.

Recordati Reports Strong Growth and Doubles Isturisa® Sales Estimates

Recordati reported strong financial results for the first nine months of 2025, with a 12.2% increase in consolidated net revenues and an 11.8% rise in EBITDA. The company doubled its peak year sales estimates for Isturisa® to over €1.2 billion, driven by its expansion in the Cushing’s syndrome market. Despite a challenging macroeconomic environment, Recordati remains confident in achieving its financial year targets, supported by robust growth in both its Specialty & Primary Care and Rare Diseases sectors.

Recordati Completes Share Buyback Program to Support Management Incentive Plans

Recordati S.p.A. has completed its share buyback program, initiated on April 30, 2025, as per the resolution of the Shareholders’ Meeting. The program aimed to purchase shares to service stock options and performance share plans for the management of the Recordati Group. Between April 30 and October 24, 2025, Recordati purchased a total of 2,000,000 shares, representing 0.956% of its share capital, at an average price of €52.3656. As of October 24, 2025, the company held 4,728,240 own shares, equating to 2.261% of the share capital. This strategic move is expected to support the company’s incentive plans and potentially enhance shareholder value.

Recordati Appoints Mike McClellan as New CFO

Recordati has appointed Mike McClellan as the new Chief Financial Officer, effective January 1, 2026. McClellan brings nearly 30 years of experience in the pharmaceutical sector, having contributed to significant growth and profitability at Almirall, Teva, and Sanofi. His expertise is expected to support Recordati’s strategy of continuous growth and business development, ensuring a smooth transition and furthering the company’s reputation in the industry.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has provided an update on its share buyback program, initiated to support stock options and performance share plans for its management. Between October 13 and October 17, 2025, the company purchased 56,725 of its own shares, bringing its total holdings to 4,597,656 shares, which is 2.199% of its share capital. This strategic move is likely to enhance stakeholder value and align management incentives with company performance.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has provided an update on its share buyback program, which was initiated to support stock option and performance share plans for the company’s management. As of October 10, 2025, Recordati has purchased 20,895 shares, holding a total of 4,547,996 own shares, representing 2.175% of its share capital. This move is part of Recordati’s strategy to incentivize management and align their interests with those of shareholders, potentially impacting the company’s market positioning and stakeholder relations.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. announced an update on its share buyback program, initiated on April 30, 2025, to support stock option and performance share plans. The company purchased 28,096 ordinary shares between September 29 and October 3, 2025, at an average price of €51.0925 per share. As of October 3, 2025, Recordati held 4,552,651 own shares, representing 2.177% of its share capital. This buyback program is part of Recordati’s strategy to enhance shareholder value and support its incentive plans, reflecting its commitment to long-term growth and stability.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has announced an update on its share buyback program, which began on April 30, 2025, following a resolution from the Shareholders’ Meeting. The program, executed by UBS Europe SE, aims to purchase shares for stock option and performance share plans. Between September 22 and 26, 2025, Recordati purchased 196,951 ordinary shares, bringing its total holdings to 4,532,555 shares, equivalent to 2.167% of its share capital. This strategic move is part of Recordati’s efforts to enhance its incentive plans and align with its growth objectives.

Recordati Updates on Share Buyback Program

Recordati has provided an update on its share buyback program, initiated on 30 April 2025, which aims to purchase shares for stock option and performance share plans. From 15 to 19 September 2025, Recordati purchased 108,016 ordinary shares, with a weighted average price of €53.1151 per share, bringing its total holdings to 4,342,104 shares, or 2.076% of the share capital. This move is part of Recordati’s strategy to enhance its financial structure and incentivize management, potentially impacting its market positioning positively.

Recordati Announces CFO Resignation and Board Changes

Recordati S.p.A. announced the resignation of Dr. Luigi La Corte from his role as Group CFO, effective at the end of the year, while he will continue to serve on the Board of Directors. The company is considering both internal and external candidates for the CFO position and will announce a successor in due course. The resignation is accompanied by a financial package and retention of certain stock options for Dr. La Corte. Additionally, the Board confirmed the independence of Dr. Silvia Mina as a Statutory Auditor, following the resignation of Dr. Livia Amidani Aliberti.

Recordati Updates on Share Buyback Program

Recordati S.p.A. has announced an update on its share buyback program, which commenced on April 30, 2025. The program aims to purchase shares for stock option and performance share plans for the management of the Recordati Group. Between September 8 and September 12, 2025, the company purchased a total of 63,869 shares at a weighted average price of €54.0053 per share. As of September 12, 2025, Recordati holds 4,234,088 own shares, representing 2.025% of its share capital. This strategic move is expected to support the company’s incentive plans and potentially enhance shareholder value.

Recordati Updates on Share Buyback Program Execution

Recordati S.p.A. has provided an update on its share buyback program, which began on 30 April 2025, following a resolution from the Shareholders’ Meeting. The program aims to purchase shares for stock option and performance share plans for the management of the Recordati Group. From 1 to 5 September 2025, the company purchased a total of 40,549 shares at an average price of 53.4694 euros per share. As of 5 September 2025, Recordati held 4,204,802 own shares, representing 2.011% of its share capital. This strategic move is part of Recordati’s efforts to enhance its market positioning and provide incentives to its management team.