# Recordati Ord (REC.MI)

Canonical: https://gigainvestors.com/s/REC.MI

Analysis as of: 2026-10-16T07:35:32.303Z. Financial observations: FY2015–FY2026.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 53.00 per share; close as of 2026-10-14.

Estimated value: low EUR 38.52 per share, central EUR 54.26 per share, high EUR 63.42 per share. Buy at or below the central value EUR 54.26 per share. Valuation as of 2026-10-16T07:35:32.303Z; scenarios are not confidence intervals.

Expected annual return: 10.2% at the stated quote. About 10.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; IT 10-year bond 4.5% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.32×

- FY2018: 0.33×

- FY2019: 0.32×

- FY2020: 0.32×

- FY2021: 0.31×

- FY2022: 0.27×

- FY2023: 0.27×

- FY2024: 0.28×

- FY2025: 0.27×

- LTM to Jun 2026: 0.30×

### moat: pass

- ROIC, median of available years: 47.8%

- ROIC, second-lowest year: 34.2%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 69.9%

- Recent gross margin (lower of latest and 3-year median): 68.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 20.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 45.6%

- FY2017: 35.0%

- FY2018: 34.2%

- FY2019: 25.4%

- FY2020: 67.9%

- FY2021: 50.1%

- FY2022: 44.9%

- FY2023: 57.0%

- FY2024: 64.4%

- FY2025: 76.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 1.3B

- Net income, five-year total: EUR 1.9B

- Return on incremental invested capital: 30.0%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 5.3 pp

- Working capital / revenue, final three-year average: 29.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.33×

- FY2023: 0.43×

- FY2024: -0.59×

- FY2025: 1.27×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 35.0% vs 64.4%

- Per-share earnings: 1.53 to 1.99 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: EUR 2.4B

- Cumulative retained earnings: EUR 1.4B

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.5%

- Per-share value change: EUR 0.46

- Per-share value, starting three-year median: EUR 1.53

- Per-share value, ending three-year median: EUR 1.99

- Buybacks concentrated in cheaper years (correlation): 0.75

- Average buyback yield: 1.1%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 1.7B

- Cumulative net income, 10 years: EUR 3.5B

- ROIC, first three-year median: 35.0%

- ROIC, last three-year median: 64.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 1.39

- FY2018: EUR 1.53

- FY2019: EUR 1.79

- FY2020: EUR 1.72

- FY2021: EUR 1.87

- FY2022: EUR 1.49

- FY2023: EUR 1.86

- FY2024: EUR 1.99

- FY2025: EUR 2.12

### accounting: pass

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.66×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.2%

- FY2017: 0.8%

- FY2018: -2.1%

- FY2019: 1.8%

- FY2020: -1.8%

- FY2021: -3.8%

- FY2022: -3.7%

- FY2023: -2.3%

- FY2024: -3.0%

- FY2025: -2.9%

## Holders

## Price story

Price needs cash profits to grow 6.2% a year for ten years · sales +3.3%

Story as of 2026-10-16T10:00:05.504Z; price observation 2026-10-14.

Price needs cash profits to grow 6.2% a year for ten years

### Sales · FY2025–2026

sales +3.3%; source https://filings.xbrl.org/815600FBF92FD3531704/2032-12-31/ESEF/IT/0/815600FBF92FD3531704-2022-12-31-it/reports/815600FBF92FD3531704-2022-12-31-it.xhtml; observed 2023-04-04.

- FY2017: EUR 1.3B 

- FY2018: EUR 1.4B 

- FY2019: EUR 1.5B 

- FY2020: EUR 1.4B 

- FY2021: EUR 1.6B 

- FY2022: EUR 1.9B 

- FY2023: EUR 2.1B 

- FY2024: EUR 2.3B 

- FY2025: EUR 2.6B 

- FY2026: EUR 2.7B 

### Gross margin · FY2025

gross margin 68.3%; source https://filings.xbrl.org/815600FBF92FD3531704/2032-12-31/ESEF/IT/0/815600FBF92FD3531704-2022-12-31-it/reports/815600FBF92FD3531704-2022-12-31-it.xhtml; observed 2023-04-04.

- FY2016: 68.7% 

- FY2017: 70.3% 

- FY2018: 70.7% 

- FY2019: 70.5% 

- FY2020: 71.9% 

- FY2021: 72.9% 

- FY2022: 69.4% 

- FY2023: 68.3% 

- FY2024: 68.3% 

- FY2025: 68.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers general; annual sales are EUR 2.6 billion.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2025-12-31 (filed 2023-04-04); FY2025: revenue 2618383000; grossProfit 1787679000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 68.3% to 68.3% during 2023–25; it earns 47.8% on its capital.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2023-12-31 (filed 2023-04-04); FY2023: grossProfit / revenue = 68.3%.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2024-12-31 (filed 2023-04-04); FY2024: grossProfit / revenue = 68.3%.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2025-12-31 (filed 2023-04-04); FY2025: grossProfit / revenue = 68.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-04-04); 10-year return on capital observations [[2016,0.4556084967259039],[2017,0.35034788677165407],[2018,0.3421355019077108],[2019,0.2544125041822525],[2020,0.6789925772424391],[2021,0.5006698959736282],[2022,0.44906991166667476],[2023,0.5704278022675957],[2024,0.6438260710391918],[2025,0.763852696706027]]; median 0.4781391963497661. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.5% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2016-12-31 (filed 2023-04-04); FY2016: growth capex 0; upkeep 36941000; owner earnings 218495000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2017-12-31 (filed 2023-04-04); FY2017: growth capex 0; upkeep 14588000; owner earnings 258123000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2018-12-31 (filed 2023-04-04); FY2018: growth capex 0; upkeep 19362000; owner earnings 338476000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2019-12-31 (filed 2023-04-04); FY2019: growth capex 0; upkeep 22095000; owner earnings 424978000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-04-04); FY2020: growth capex 0; upkeep 131678000; owner earnings 316978000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-04-04); FY2021: growth capex 0; upkeep 87360000; owner earnings 396191000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2022-12-31 (filed 2023-04-04); FY2022: growth capex 0; upkeep 23887000; cash acquisitions 673259000; owner earnings 414205000. Growth capex plus acquisitions / owner earnings = 1.6254246085875352.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2023-12-31 (filed 2023-04-04); FY2023: growth capex 19999473.326637745; upkeep 363264526.67336226; cash acquisitions 0; owner earnings 168619473.32663774. Growth capex plus acquisitions / owner earnings = 0.11860713909298114.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2025-12-31 (filed 2023-04-04); FY2025: growth capex 0; upkeep 85124000; cash acquisitions 2660000; owner earnings 564935000. Growth capex plus acquisitions / owner earnings = 0.004708506288334056.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-04-04); Dividend observations: [[2016,133730000],[2017,159607000],[2018,178887000],[2019,190916000],[2020,212718000],[2021,216742000],[2022,230602000],[2023,245958000],[2024,253718000],[2025,267556000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/RER1.F.json#2025-12-31 (filed 2023-04-04); FY2025: cash repurchases 157055000 EUR.

### What the price says

The price assumes cash profits grow 6.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-04-04); Ten-year compound average after fade. Initial solved rate 0.07560779744154222. Price 53; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-14.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 25.69 per share

- 2016-12: EUR 26.92 per share

- 2017-01: EUR 26.31 per share

- 2017-02: EUR 29.97 per share

- 2017-03: EUR 31.77 per share

- 2017-04: EUR 34.01 per share

- 2017-05: EUR 35.81 per share

- 2017-06: EUR 35.52 per share

- 2017-07: EUR 36.10 per share

- 2017-08: EUR 35.98 per share

- 2017-09: EUR 39.00 per share

- 2017-10: EUR 39.91 per share

- 2017-11: EUR 37.80 per share

- 2017-12: EUR 37.06 per share

- 2018-01: EUR 36.67 per share

- 2018-02: EUR 29.45 per share

- 2018-03: EUR 29.98 per share

- 2018-04: EUR 29.65 per share

- 2018-05: EUR 31.70 per share

- 2018-06: EUR 34.06 per share

- 2018-07: EUR 31.98 per share

- 2018-08: EUR 30.17 per share

- 2018-09: EUR 29.16 per share

- 2018-10: EUR 29.92 per share

- 2018-11: EUR 28.41 per share

- 2018-12: EUR 30.29 per share

- 2019-01: EUR 31.64 per share

- 2019-02: EUR 33.07 per share

- 2019-03: EUR 34.71 per share

- 2019-04: EUR 35.99 per share

- 2019-05: EUR 37.00 per share

- 2019-06: EUR 36.66 per share

- 2019-07: EUR 40.53 per share

- 2019-08: EUR 39.86 per share

- 2019-09: EUR 39.36 per share

- 2019-10: EUR 37.67 per share

- 2019-11: EUR 38.07 per share

- 2019-12: EUR 37.57 per share

- 2020-01: EUR 38.63 per share

- 2020-02: EUR 38.68 per share

- 2020-03: EUR 38.54 per share

- 2020-04: EUR 39.67 per share

- 2020-05: EUR 40.92 per share

- 2020-06: EUR 44.45 per share

- 2020-07: EUR 45.24 per share

- 2020-08: EUR 45.67 per share

- 2020-09: EUR 43.74 per share

- 2020-10: EUR 44.49 per share

- 2020-11: EUR 44.63 per share

- 2020-12: EUR 45.33 per share

- 2021-01: EUR 42.72 per share

- 2021-02: EUR 42.14 per share

- 2021-03: EUR 45.87 per share

- 2021-04: EUR 45.84 per share

- 2021-05: EUR 45.49 per share

- 2021-06: EUR 48.20 per share

- 2021-07: EUR 52.18 per share

- 2021-08: EUR 55.56 per share

- 2021-09: EUR 50.28 per share

- 2021-10: EUR 54.12 per share

- 2021-11: EUR 55.44 per share

- 2021-12: EUR 56.50 per share

- 2022-01: EUR 49.54 per share

- 2022-02: EUR 43.76 per share

- 2022-03: EUR 45.64 per share

- 2022-04: EUR 45.99 per share

- 2022-05: EUR 41.68 per share

- 2022-06: EUR 41.51 per share

- 2022-07: EUR 43.23 per share

- 2022-08: EUR 40.74 per share

- 2022-09: EUR 37.69 per share

- 2022-10: EUR 38.03 per share

- 2022-11: EUR 40.64 per share

- 2022-12: EUR 38.75 per share

- 2023-01: EUR 40.13 per share

- 2023-02: EUR 40.14 per share

- 2023-03: EUR 38.96 per share

- 2023-04: EUR 41.73 per share

- 2023-05: EUR 40.62 per share

- 2023-06: EUR 43.75 per share

- 2023-07: EUR 46.95 per share

- 2023-08: EUR 46.38 per share

- 2023-09: EUR 44.71 per share

- 2023-10: EUR 43.60 per share

- 2023-11: EUR 44.17 per share

- 2023-12: EUR 48.83 per share

- 2024-01: EUR 51.30 per share

- 2024-02: EUR 51.76 per share

- 2024-03: EUR 51.24 per share

- 2024-04: EUR 50.05 per share

- 2024-05: EUR 48.40 per share

- 2024-06: EUR 48.70 per share

- 2024-07: EUR 50.35 per share

- 2024-08: EUR 53.00 per share

- 2024-09: EUR 50.80 per share

- 2024-10: EUR 52.10 per share

- 2024-11: EUR 51.55 per share

- 2024-12: EUR 50.60 per share

- 2025-01: EUR 58.75 per share

- 2025-02: EUR 54.30 per share

- 2025-03: EUR 52.30 per share

- 2025-04: EUR 51.85 per share

- 2025-05: EUR 52.80 per share

- 2025-06: EUR 53.40 per share

- 2025-07: EUR 50.40 per share

- 2025-08: EUR 52.75 per share

- 2025-09: EUR 51.70 per share

- 2025-10: EUR 51.50 per share

- 2025-11: EUR 50.90 per share

- 2025-12: EUR 48.54 per share

- 2026-01: EUR 46.34 per share

- 2026-02: EUR 48.42 per share

- 2026-03: EUR 49.04 per share

- 2026-04: EUR 49.64 per share

- 2026-05: EUR 51.50 per share

- 2026-06: EUR 51.30 per share

- 2026-07: EUR 51.65 per share

- 2026-08: EUR 52.55 per share

- 2026-09: EUR 52.65 per share

- 2026-10: EUR 53.00 per share

## Annual estimated value (EUR per share)

- FY2019: low EUR 16.54 per share, central EUR 18.71 per share, high EUR 21.61 per share

- FY2020: low EUR 17.57 per share, central EUR 19.88 per share, high EUR 22.96 per share

- FY2021: low EUR 22.03 per share, central EUR 24.92 per share, high EUR 28.78 per share

- FY2022: low EUR 25.43 per share, central EUR 28.77 per share, high EUR 33.22 per share

- FY2023: low EUR 25.18 per share, central EUR 28.54 per share, high EUR 33.00 per share

- FY2024: low EUR 28.10 per share, central EUR 31.79 per share, high EUR 36.71 per share

- FY2025: low EUR 38.52 per share, central EUR 54.26 per share, high EUR 63.42 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:15.068Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/815600FBF92FD3531704/2032-12-31/ESEF/IT/0/815600FBF92FD3531704-2022-12-31-it/reports/815600FBF92FD3531704-2022-12-31-it.xhtml); period 2032-12-31, filed 2023-04-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.