Grifols A has earned 129 million euros in the first quarter of the year, 30.3% less than in the same period of the previous year, although the figure is higher than expected. Also in the case of its Ebitda, which beats forecasts, and stands at 322 million, that yes excluding the impact of exchange rates. Its income fell 0.9% but remained at 1,184.7 million, with a decrease of 0.9%.
Grifols: reduce profits, maintain income and accelerate its expansion plan
Its liquidity levels include cash positions of 381 million euros together with credit lines of 672 million, thus exceeding 1 billion. After the refinancing process closed in November 2019, Grifols does not have to face significant maturities or debt repayments until 2025. Although its net debt remains high, 6,200.5 million with a debt / ebitda ratio of 5.1x .
The company also stands out in the execution of its expansion plan to obtain more plasma with the acquisitions of centers carried out in the first three months of 2021, which have allowed it to expand its capacity by approximately 1.4 million additional liters of plasma per year of immediate form. In fact, it already has 351 plasma centers, the majority in the US, 296 specifically and 55 in Europe.
Currently, Grifols points out, part of the R & D & i project portfolio is aimed at treating diseases beyond plasma-derived therapies. Total net investment in R & D & i was 70.7 million euros, which represents 6.0% of revenues and highlights the incremental efforts of the company to advance in integration and development of the Alkahest and GigaGen projects.
In its quotation graph we see how the value breaks the downward trend after the results with significant advances while it has accumulated, at the end of last month, six consecutive sessions down, with decreases of 4.7%. The month of April closed in tables, with hardly any movements and continues to lose positions in the year, with a 4% cut. The reservation in the trend of this day can be decisive for the value.
Regarding recommendations, Berenberg cuts the target price of his shares to 29.30 euros from the previous 30.65. For Reuters buy advice as an average for analysts who follow the stock with a target price of 28.17 euros per share. Meanwhile, Deutsche Bank chooses to maintain the value with a target price at the initial hedge on the value of 25 euros per security.
While Grifols will develop with an investment of 25 million euros and in collaboration with the government of Andorra, a pioneering research center in which they want it to be a reference in immunology and that will be operational in 2023. The idea is that it allows progress in the knowledge of the immune system and that allows research and development of new therapies immunological, with more than 7 million euros of annual operating expenses.
For José Antonio González, technical analyst at Grifols Investment Strategies, “it has once again ceded positions after the recovery in recent weeks, from 19.18 euros per share, it is totally insufficient to alter the unquestionable bearish dominance of the background, that the price is close to its 200-period or long-term simple moving average, the slope of which remains strongly downward, as well as the downward guideline that starts at 34.09 / 33.67 euros per share ”.
Grifols on daily chart with average amplitude range in percentage, MACD oscillator and trading volume
Following the value from the technical point of view, the premium indicators of Ei show us that the value, in rebound mode, shows down by one point and reaches 3 out of 10 total points. In positive, the medium-term trend is shown, which is upward for the value and the volume of business that is growing in the long term. The rest, with a long-term downward trend, total momentum, both slow and fast, negative, the medium-term volume decreasing and the range of amplitude, the volatility of the value, increasing in the medium and long term.
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