Recordati Industria Chimica e Farmaceutica S.p.A. (REC.MI) stock analysis

In our weekly check, Recordati Industria Chimica e Farmaceutica S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1.

About Recordati Industria Chimica e Farmaceutica S.p.A.

Recordati Industria Chimica e Farmaceutica S.p.A. is a Healthcare company (Drug Manufacturers - General) based in Italy, listed on MIL as REC.MI.

What our checks show for REC.MI

Red flags

• The net margin fell by 6 points over 5 years, to 18.4%: the company keeps less of each sale as profit.

Warning signs

• Net debt is 1.9x a year of EBITDA (debt/equity 1.08). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 2.2 points, to 70.7%: costs are rising faster than prices.
• The stock has fallen as much as 47% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2 years.
• Thinly traded (about 333 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 8.1 times over.
• Operating cash flow is 1.3x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 23.5% a year over the next years.
• Analysts expect the net margin to improve by 7.1 points from today's 18.4%.
• Earnings per share grew 16.9% a year over the last 3 years.
• Net profit grew 16.8% a year over the last 3 years.

Next earnings report: 2026-11-10

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Questions

What grade does Recordati Industria Chimica e Farmaceutica S.p.A. (REC.MI) have?

In our weekly check, Recordati Industria Chimica e Farmaceutica S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of REC.MI stock?

This week's biggest flags for Recordati Industria Chimica e Farmaceutica S.p.A.: Margins falling, High debt, Gross margin falling. In total 6 of 25 checks show a warning or a red flag.

What does Recordati Industria Chimica e Farmaceutica S.p.A. do?

Recordati Industria Chimica e Farmaceutica S.p.A. is a Healthcare company (Drug Manufacturers - General) based in Italy, listed on MIL as REC.MI.

When does Recordati Industria Chimica e Farmaceutica S.p.A. report earnings next?

The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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