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Recordati Industria Chimica e Farmaceutica S.p.A (REC) Fair Value & Analysis

Healthcare · IT · Market cap €10.3B

RI Recordati Industria Chimica e Farmaceutica S.p.A REC · MI
Price€52.65
Fair Value€47.97
Upside-8.9%
Quality73/100
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Healthy Growth
Solidly profitable · 17.8% net margin
Low debt · generates free cash flow
2.64% dividend yield
Ranks above peers (10/15)
Wide moat 79/100
Evidence: High Range €30.81 – €59.96 Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 17 days ago

Share price +2.4% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (€30.81 to €59.96) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

€58.59 €31.82 Fair Value €47.97 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range €31.82 – €58.59 · fair‑value band €30.81 – €59.96 · the €52.65 price screens above the €47.97 fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Recordati Industria Chimica e Farmaceutica S.p.A (REC) currently trades at €52.65, while our model-based Fair Value estimate is €47.97, implying the stock looks roughly 8.9% fairly valued today. We read business quality at 73/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Recordati Industria Chimica e Farmaceutica S.p.A generated revenue of €2.7B at a net margin of 17.8%. Revenue grew 4.9% year over year. It earns a return on equity of 23.4%. Net debt stands at €1.6B. Fundamentals as of Jul 21, 2026

Our scenario range runs from €30.81 (bear case) to €59.96 (bull case); at €52.65, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 2% below its 52-week high and 22% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -25% fair-value upside, at -9%, REC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF €28.04 €47.84 €79.79 80
Residual Income €14.46 €19.37 €96.30 76
Rev-Margin DCF €22.20 €37.66 €56.57 74
All 24 models by family
DCF Models
FCF DCF €27.88 €48.42 €81.85 38
Owner Earnings €31.04 €53.70 €90.61 31
5Y Revenue Exit €22.20 €37.74 €58.00 39
5Y EBITDA Exit €34.40 €61.69 €94.76 41
5Y P/E Exit €27.37 €47.88 €70.29 38
10Y Revenue Exit €23.19 €38.23 €59.52 36
10Y EBITDA Exit €31.84 €55.30 €88.87 37
10Y P/E Exit €27.27 €45.46 €69.33 35
Earnings-Based
Graham-Dodd €14.83 €57.18 €77.51 54
Lynch FV €13.98 €19.97 €25.96 50
PEG = 1.0 €13.98 €19.97 €25.96 46
EPV €26.42 €31.25 €35.46 59
Multiples
P/E Multiple €32.71 €43.61 €54.51 63
P/S Multiple €24.13 €32.17 €40.22 58
P/B Multiple €21.23 €28.31 €35.38 55
EV/EBIT €45.26 €61.17 €77.09 53
EV/EBITDA €41.88 €56.68 €71.47 54
EV/Revenue €20.02 €29.67 €39.33 43
Asset-Based
NCAV (Graham) €4.72 €6.32 €9.44 50
Growth DCF
Growth DCF €28.04 €47.84 €79.79 80
Rev-Margin DCF €22.20 €37.66 €56.57 74
Economic Profit
Residual Income €14.46 €19.37 €96.30 76
ROIC Compounder €29.42 €38.90 €50.45 72
Growth Earnings
Growth-Adj P/E €24.51 €35.02 €45.52 68

Widest divergence: DCF Models (€47.88) versus Asset-Based (€6.32). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €2.7B
Revenue growth (YoY) +4.9%
Net margin 17.8%
Return on equity 23.4%
Free cash flow €512M FY2025
P/E ratio 22.4
More key figures
Operating margin 32.4%
EPS (TTM) €2.26
Dividend yield 2.6%
EPS growth (YoY) +22.4%
Net debt €1.6B FY2023

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 68 · Market factors (momentum, volatility) 67

Profitability 60
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 90
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, researches, develops, produces, and sells pharmaceuticals in Italy, the United States, Spain, France, Germany, Russia, Ukraine, Turkey, Portugal, North Africa, and internationally. It operates through Specialty and Primary Care; and Rare Diseases segments.

Full company description

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, researches, develops, produces, and sells pharmaceuticals in Italy, the United States, Spain, France, Germany, Russia, Ukraine, Turkey, Portugal, North Africa, and internationally. It operates through Specialty and Primary Care; and Rare Diseases segments. The company develops Maapliv for maple syrup urine disease; Isturia for endogenous Cushing's syndrome; Cystadrops treatment of the ocular manifestations of cystinosis; Carbaglu for hyperammonemia due to n-acetyl glutamate synthase deficiency; Qarziba for neuroblastoma patients and patients with relapsed or refractory neuroblastoma; and Fotivda for renal cell carcinoma. It also develops Sylvant for idiopathic multicentric castleman diseases; Caphosol for oral mucositis; ENJAYMO for hemolysis in adults with cold agglutinin disease; Zanidip, Zanipress, Vazkepa, and Logimax for hypertension; Urorec and Avodart for symptoms of benign prostatic hyperplasia; and Livazo for dyslipidemia; Combodart/Duodart; Seloken for angina pectoris, myocardial infarction and cardiac rhythm disorders, as well as hypertension and functional heart disorders. In addition, the company offers Procto-Glyveno for internal and external hemorrhoids; Polydexa, Isofra, and Otofa for ear, nose and throat infections; Isturisa, for Cushing's syndrome; Normosang, human hemin; Juxtapid, homozygous familial hypercholesterolemia;Ledaga, mycosis fungoides, T-cell cutaneous lymphoma;Tergynan, an anti-infective for gynecological infections; CitraFleet and Phosphosoda as bowel cleansers; Lomexin for gynecological and dermatological infections; Hexaspray, treatments for the oral cavity; Magnesio Supremo, a dietary supplement; Reaglia for schizophrenia; Eligard for hormone-dependent prostate cancer; and pasireotide in Phase II trial for patients with post-bariatric hypoglycemia, as well as other products. The company was founded in 1926 and is headquartered in Milan, Italy.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Recordati Industria Chimica e Farmaceutica S.p.A reported revenue of €2.6B in FY2025 versus €1.6B in FY2021, a compound +13.5%/yr. Reported net income was €444M in FY2025, compounding +3.5%/yr from FY2021.

Growth Quality 97/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€2.6B
Latest YoY
+11.8%
Avg. growth/yr (3Y)
+12.2%
Avg. growth/yr (5Y)
+12.6%
Avg. growth/yr (22Y)
+7.9%
Revenue +13.5%/yr
FY21 €1.6B
FY22 €1.9B
FY23 €2.1B
FY24 €2.3B
FY25 €2.6B
Net income +3.5%/yr
FY21 €386M
FY22 €312M
FY23 €389M
FY24 €417M
FY25 €444M

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Cite: Fair Value Calculator (2026). "Recordati Industria Chimica e Farmaceutica S.p.A Fair Value". https://www.fairvalue-calculator.com/stock/REC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Drug Manufacturers - General · 75 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 73 · Above median
Fair Value upside −9% · Above median
Return on equity (TTM) 23% · Above median
Return on assets 9% · Above median
Net margin (TTM) 18% · Above median
Operating margin (TTM) 32% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 2.6% · Above median
Debt / equity 0.49× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/E (TTM) 22.4× · Pricier than median
P/B 6.19× · Pricier than median
P/S (TTM) 4.48× · Pricier than median
P/FCF 23.2× · Pricier than median
EV/EBITDA 12.6× · Cheaper than median
PEG 1.77× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 21 · sector 0
FUTURE 25 · sector 25
PAST 93 · sector 52
HEALTH 76 · sector 94
DIVIDEND 53 · sector 48

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - General stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,182 $396.77 -66%
Johnson & Johnson, JNJ $257.59 $169.04 -34%
AbbVie Inc ABBV $254.49 $67.72 -73%
Roche Holding 1RO €377.80 €280.03 -26%
Merck & Co MRK €108.08 €121.54 +12%
Novartis AG NVSN 2,742 MXN 2,379 MXN -13%
AstraZeneca PLC AZN $171.61 $129.54 -25%
Novo Nordisk A/S NOVOB kr 329.90 kr 409.46 +24%
Amgen Inc AMGN $363.39 $252.02 -31%
Gilead Sciences, Inc GILD $134.28 $146.50 +9%

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Frequently asked questions

Is Recordati Industria Chimica e Farmaceutica S.p.A (REC) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of €47.97 versus a price of €52.65, about −9% (fairly valued).
What is the fair value of REC?
Our model-based fair value for Recordati Industria Chimica e Farmaceutica S.p.A is €47.97 (as of Jul 21, 2026), built from audited fundamentals. The current price is €52.65.
What is the quality score of REC?
Recordati Industria Chimica e Farmaceutica S.p.A has a Quality Score of 73/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Recordati Industria Chimica e Farmaceutica S.p.A (REC)?
Recordati Industria Chimica e Farmaceutica S.p.A reported trailing-twelve-month revenue of about €2.7B (latest available figure, as of Jul 21, 2026).
What is the net profit margin of REC?
The net profit margin of Recordati Industria Chimica e Farmaceutica S.p.A is about 17.8%, meaning it keeps roughly 17.8% of revenue as net income. Based on the latest reported figures.
Does Recordati Industria Chimica e Farmaceutica S.p.A pay a dividend?
Recordati Industria Chimica e Farmaceutica S.p.A currently shows a dividend yield of about 2.64% relative to its recent price (as of Jul 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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