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

• Market Cap: €9.96B
• Dividend Yield: 2.67%
• Average Volume (3M): 218.69K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.57
• 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: €57.83
• Price Target Upside: 20.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €50.00 ▲(4.21% Upside)

Recordati Industria Chimica e Farmaceutica SPA's overall stock score is primarily supported by its strong financial performance, characterized by solid revenue growth and a robust balance sheet. However, bearish technical indicators and moderate valuation metrics slightly offset these strengths. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive market position and effective product adoption, supporting long-term business expansion.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.

Profitability Margins

Strong profitability margins reflect efficient operations and competitive pricing power, contributing to sustained financial performance.

Negative Factors

Cash Flow Concerns

Declining free cash flow growth could limit the company's ability to fund new projects and return capital to shareholders, impacting future growth.

EBIT and EBITDA Margins

Decreasing operational efficiency may signal rising costs or competitive pressures, potentially affecting profitability if not addressed.

EPS Growth

Negative EPS growth suggests challenges in maintaining earnings momentum, which could impact investor confidence and stock performance.

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	2.55B	2.34B	2.08B	1.85B	1.58B	1.45B
Gross Profit	1.73B	1.60B	1.42B	1.29B	1.15B	1.04B
EBITDA	828.60M	795.37M	708.16M	559.35M	578.35M	566.83M
Net Income	404.39M	416.51M	389.21M	312.34M	385.97M	354.98M
Balance Sheet
Total Assets	5.30B	5.13B	4.21B	4.00B	2.82B	2.71B
Cash, Cash Equivalents and Short-Term Investments	471.46M	322.42M	221.81M	284.73M	244.58M	188.23M
Total Debt	328.75M	2.49B	1.46B	1.72B	992.19M	1.06B
Total Liabilities	3.37B	3.26B	2.52B	2.45B	1.43B	1.44B
Stockholders Equity	1.93B	1.88B	1.69B	1.55B	1.38B	1.28B
Cash Flow
Free Cash Flow	466.92M	535.10M	102.06M	365.35M	404.29M	271.90M
Operating Cash Flow	539.62M	569.92M	485.32M	461.69M	491.65M	403.57M
Investing Cash Flow	-866.09M	-844.94M	-379.62M	-767.12M	-87.50M	-131.56M
Financing Cash Flow	567.48M	372.11M	-168.91M	341.28M	-355.94M	-264.29M

Recordati Industria Chimica e Farmaceutica SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.98
• 50DMA: Negative
• 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 IT:REC, the sentiment is Negative. The current price of 47.98 is below the 20-day moving average (MA) of 48.43, below the 50-day MA of 49.38, and below the 200-day MA of 50.86, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 is Neutral, 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
PHN	74 Outperform	€583.76M	33.17	―	1.86%	12.82%	7.37%
PHIL	70 Outperform	€634.57M	19.16	45.54%	―	3346.54%	―
DIA	64 Neutral	€4.10B	21.39	12.16%	1.80%	4.69%	15.79%
REC	60 Neutral	€9.96B	24.57	21.26%	2.67%	12.58%	-4.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Recordati Industria Chimica e Farmaceutica SPA Corporate Events

Recordati Updates Market on Progress of Share Buyback Programme

Recordati has provided an update on its recently launched share buyback programme, initiated following shareholder approval in April 2025 and intended to supply shares for existing and future stock option and performance share plans for group management. Between 17 and 19 December 2025, the company repurchased 13,050 ordinary shares on the MTA at a weighted average price of €48.3650, bringing its total treasury shareholding to 4,717,290 shares, equal to 2.256% of share capital, a move that supports long-term incentive alignment with management and may influence capital structure and share liquidity over time.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR50.00 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 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.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR55.50 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 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.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR55.50 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 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.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR55.50 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 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.

The most recent analyst rating on (IT:REC) stock is a Sell with a EUR50.00 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 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.

The most recent analyst rating on (IT:REC) stock is a Sell with a EUR50.00 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 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.

The most recent analyst rating on (IT:REC) stock is a Hold with a EUR58.00 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.