Faes Farma (FAE) AI Stock Analysis

23 Followers

Faes Farma

(BME:FAE)

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Rating:69Neutral

Price Target:EUR 5.50▲(8.70% Upside)

Action:reiterated

Date:11/05/26

Faes Farma's score is primarily driven by its attractive valuation and positive technical momentum, which are weighed against weakening financial fundamentals. While a low P/E ratio and a steady uptrend above key moving averages act as strong bullish signals, the company's recent shift toward a more leveraged balance sheet and significant margin compression introduce fundamental risks.

Positive Factors

Strong Equity Base and Historical ProfitabilityFaes Farma has demonstrated substantial earnings power over several years, supported by historically high margins, generally steady revenue growth, and a sizable equity base. This established profitability provides a foundation for continued investment and resilience, despite the weaker 2025 outcome.

Negative Factors

2025 Revenue and Margin DeclineThe 2025 step-down indicates that recent earnings momentum has weakened after several years of stronger performance. Lower revenue and compressed margins can reduce internal funding capacity and make it harder for the company to sustain prior profitability without successful operational recovery.

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

Market Cap: EUR 1.55B
Dividend Yield: 2.53%
Average Volume (3M): 169.06K
Price to Earnings (P/E): 11.6
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 primarily by selling healthcare products, with revenue generated from: (1) Prescription pharmaceuticals: income from the commercialization of branded medicines and other prescription products sold through pharmaceutical distrib...

Faes Farma Financial Statement Overview

Summary

Revenue reached record highs, but profitability has deteriorated significantly with gross margins dropping to 37%. Increased debt levels and contracting free cash flow indicate a transitional, lower-efficiency phase despite continued overall profitability.

Income Statement

58Neutral

Balance Sheet

65Positive

Cash Flow

62Positive

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 Technical Analysis

Technical Analysis SentimentPositive

Last Price5.06

Price Trends

50DMA4.71Positive

100DMA4.61Positive

200DMA4.66Positive

Market Momentum

MACD0.07Negative

RSI63.87Neutral

STOCH86.87Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:FAE, the sentiment is Positive. The current price of 5.06 is above the 20-day moving average (MA) of 4.81, above the 50-day MA of 4.71, and above the 200-day MA of 4.66, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 86.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:FAE.

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 130.69M	14.88	52.07%	11.57%	-6.06%	-15.89%
ES:GRF	75Outperform	EUR 6.95B	16.18	8.83%	0.71%	1.03%	30.59%
ES:LOG	72Outperform	EUR 4.94B	17.74	43.48%	5.58%	2.23%	0.36%
ES:ALM	70Outperform	EUR 2.35B	31.81	4.81%	1.72%	9.67%	174.00%
ES:FAE	69Neutral	EUR 1.55B	11.64	18.19%	2.53%	31.88%	-20.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ES:RJF	47Neutral	EUR 217.37M	30.70	3.14%	0.75%	-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	5.06	0.55	12.20%
ES:ALM	Almirall SA	10.68	-1.52	-12.44%
ES:GRF	Grifols (0RDU)	11.65	1.14	10.89%
ES:RJF	LABORATORIO REIG JOFRE	2.60	-0.12	-4.41%
ES:LOG	Compania de Distribucion Integral Logista Holdings	37.78	9.61	34.09%
ES:NTH	Naturhouse Health	2.16	0.31	16.88%

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: Nov 04, 2026

Faes Farma AI Stock Analysis