Faes Farma (FAE) AI Stock Analysis

Faes Farma

(BME:FAE)

Select Model

Rating:61Neutral

Price Target:EUR 5.00▲(3.84% Upside)

Action:downgraded

Date:03/05/26

The overall score of 61 reflects solid financial fundamentals and a reasonable valuation, offset by weak short-term technicals. The company's consistent revenue growth and healthy balance sheet are positives, while recent margin compression from an acquisition and bearish momentum warrant caution. The attractive dividend yield provides additional support.

Positive Factors

Historical ProfitabilityFaes Farma has demonstrated substantial earnings power across several years, providing a durable operating base. Although profitability weakened in 2025, the historical record supports the resilience of its branded pharmaceutical and healthcare portfolio.

Negative Factors

Revenue DeclineThe 2025 revenue contraction signals weaker demand, product mix, or market execution after a period of steadier growth. If sustained, lower sales would limit operating leverage and make it harder to fund portfolio development and expansion.

Faes Farma (FAE) vs. iShares MSCI Spain ETF (EWP)

Market Cap: EUR 1.50B
Dividend Yield: 2.66%
Average Volume (3M): 159.55K
Price to Earnings (P/E): 11.1
Beta (1Y): 0.44
Revenue Growth: 31.88%
EPS Growth: -20.09%
Country: Spain
Employees: 2,677
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Faes Farma Business Overview & Revenue Model

Company Description

Faes Farma, S.A. is a pharmaceutical enterprise dedicated to the research, development, manufacture, and distribution of both finished medicinal products and crucial raw materials. Its extensive operations span Spain and a multitude of international...

How the Company Makes Money

Faes Farma makes money mainly by selling pharmaceutical and healthcare products, generating revenue when its medicines and other health products are dispensed or purchased through pharmacies, hospitals, and other healthcare channels. A core component...

Faes Farma Financial Statement Overview

Summary

Faes Farma shows strong historical revenue growth and a solid balance sheet, but recent margin compression and increased leverage from an acquisition have pressured profitability. The company remains profitable and generates positive cash flow, supporting a score of 70.

Income Statement

70Positive

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	610.46M	493.65M	451.17M	438.75M	398.56M
Gross Profit	312.17M	228.46M	326.54M	297.12M	282.01M	252.40M
EBITDA	167.65M	101.80M	128.33M	122.93M	121.35M	110.84M
Net Income	136.19M	79.63M	111.36M	91.90M	89.50M	82.39M
Balance Sheet
Total Assets	1.44B	1.34B	853.08M	776.03M	725.67M	641.76M
Cash, Cash Equivalents and Short-Term Investments	136.78M	130.09M	72.14M	47.75M	84.10M	73.41M
Total Debt	396.85M	409.91M	7.79M	23.90M	32.69M	16.44M
Total Liabilities	664.48M	594.19M	126.46M	112.68M	123.39M	103.70M
Stockholders Equity	774.45M	744.80M	725.87M	662.36M	601.08M	536.53M
Cash Flow
Free Cash Flow	61.63M	62.38M	75.95M	-1.22M	25.84M	20.23M
Operating Cash Flow	79.45M	78.49M	115.47M	100.97M	106.79M	79.64M
Investing Cash Flow	-241.15M	-299.02M	-34.18M	-97.36M	-92.17M	-83.48M
Financing Cash Flow	182.02M	273.62M	-51.71M	-35.38M	-18.46M	-17.12M

Faes Farma Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

ES:FAE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ES:NTH	81Outperform	EUR 136.09M	15.91	52.07%	12.99%	-6.06%	-15.89%
ES:LOG	72Outperform	EUR 4.80B	17.47	42.84%	5.75%	3.79%	-11.33%
ES:ALM	65Neutral	EUR 2.31B	32.42	4.78%	1.71%	9.67%	174.00%
ES:FAE	61Neutral	EUR 1.50B	11.09	18.19%	2.66%	31.88%	-20.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ES:GRF	55Neutral	EUR 6.52B	16.42	8.43%	0.75%	-0.33%	51.93%
ES:RJF	52Neutral	EUR 212.43M	30.81	3.14%	0.74%	-0.42%	4.56%

* General Sector Average

Performance Comparison

ES:FAE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ES:FAE	Faes Farma	4.82	0.45	10.22%
ES:ALM	Almirall SA	10.74	-1.28	-10.66%
ES:GRF	Grifols (0RDU)	11.00	-0.02	-0.20%
ES:RJF	LABORATORIO REIG JOFRE	2.61	-0.18	-6.42%
ES:LOG	Compania de Distribucion Integral Logista Holdings	36.68	9.28	33.89%
ES:NTH	Naturhouse Health	2.31	0.41	21.58%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

Faes Farma AI Stock Analysis