GRFSGrifols, S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.0×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GRFS?
Grifols, S.A. earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.5 points above what the capital costs: growth creates value
- Operating margin
- 17%
Operating margin · Drug Manufacturers - General median 24% · fiscal year to FY2024
- Cash conversion
- 0.96×
Cash conversion · 0.35× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.42%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | 22% |
| FY2020 | 19% |
| FY2021 | 12% |
| FY2022 | 13% |
| FY2023 | 12% |
| FY2024 | 17% |
Details›
- Gross marginfiscal year to FY2024
- 39%
- Operating marginfiscal year to FY2024
- 17%
- Net marginfiscal year to FY2024
- 2.2%
- Free cash flow margin
- 9.3%
- R&D as % of revenue
- 5.3%
- Revenue, trailing twelve months
- $7.21B
- Free cash flow, trailing twelve months
- $670M
- Net income, trailing twelve months
- $157M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, General
Ranks #6 of 7 by RyuScore