Grifols
Note: This is a daily stock update and the information stands true as of 27/02/25, 09:00 CET.
Company Update:
Expert Opinion:
Stock was hammered after the Gotham report and didn’t really recover since. The underlying operating situation is good and the company focuses on deleveraging which should ease concerns. Furthermore, the real governance issues are being remedied wit a new chairman of the board which is also a clear positive. Historically, stock traded above 20x and now it trades below 10x with operating prospects that remain very strong. We believe there will be no capital increase, which has been a concern for some, a belief that is reinforced considering the strong FCF generation and the deleveraging. All stars seem to align and Grifols is a very strong buy in my opinion.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Q4 Sales came in at c.€2bn, up 14% at constant exchange rates (CER) and 12% reported, this 3% above consensus.
Q4 EBITDA up 18.6% to €526m, 4% better than expected.
FY sales are up 10% to €7.2bn and FY EBITDA at €1.8bn (margin of 24.7%)
FCF at €266m , better than expected, leading to a net debt at €8bn vs €9.4bn at the end of Q3. Deleveraging continues which is great , with ‘reported’ leverage ratio (as per financial statements and not the credit agreement) improving to 5.6x at end-2024 vs. 6.1x at end-Q3.
Expert Opinion:
Stock was hammered after the Gotham report and didn’t really recover since. The underlying operating situation is good and the company focuses on deleveraging which should ease concerns. Furthermore, the real governance issues are being remedied wit a new chairman of the board which is also a clear positive. Historically, stock traded above 20x and now it trades below 10x with operating prospects that remain very strong. We believe there will be no capital increase, which has been a concern for some, a belief that is reinforced considering the strong FCF generation and the deleveraging. All stars seem to align and Grifols is a very strong buy in my opinion.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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