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⚠️ Not investment advice. Past performance does not guarantee future results.
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Faes Farma FAE.MC

Spain Healthcare
6.2/10
AI Analyst score
4.75 EUR
Last price at analysis date · analyst target 5.36 (+12.6%)
🛒 Where to buy FAE.MCPartner brokers · Spain (BME) · sample 200.00 € orderSpain (BME)
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🟡 HOLD — Hold; valuation is reasonable and growth is solid, but cash generation and return on capital need to improve to justify a more aggressive position.

Faes Farma is a Spanish pharmaceutical company specializing in the development, manufacturing, and marketing of prescription drugs, mainly in allergology, dermatology, and central nervous system, with a business model based on proprietary innovation and international expansion. Faes Farma shows 24% revenue growth and a forward P/E of 13.49, suggesting an attractive valuation, although cash conversion (15.53%) and ROE (11.22%) are weak, limiting the quality of its moat.

Financial health
6.7
Quality / Moat
5.2
Valuation
5.8
Growth
7.3
Dividend
7.4
Momentum
4.5
Risk & Context
7.5

Detailed metrics

Market and fundamental data as of the analysis date.

💵 Valuation
P/E17.61
Fwd P/E13.49
EV/EBITDA14.11
P/B1.91
P/S2.08
PEG0.91
Market cap1.48 B EUR
Enterprise value1.77 B EUR
🏰 Quality and moat
ROIC (approx.)9.9%
Gross margin65.17%
FCF conversion16%
Operating margin17.04%
📈 Profitability and margins
ROE11.22%
ROA5.03%
Net margin11.84%
FCF19.5 M EUR
FCF yield1.32%
🏦 Solvency and liquidity
Total debt449.3 M EUR
Net debt312.5 M EUR
Cash136.8 M EUR
EBITDA125.7 M EUR
Net debt / EBITDA2.49
D/E57.95
Current ratio2.63
Quick ratio1.66
🚀 Growth
Revenue growth24.00%
Earnings growth8.90%
EPS (TTM)0.27 EUR
EPS (Fwd)0.35 EUR
💰 Dividend and risk
Dividend yield2.73%
Payout47.8%
Beta0.34
Analyst consensusnone (4)
Target price5.36 EUR
52-week range4.17 EUR – 5.44 EUR
⚠️ Main risk: Weak cash conversion (15.53%) and regulatory risk in the Spanish pharmaceutical sector, with potential pricing pressure, are the main risks for Faes Farma.
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Full AI report

Generated automatically from the metrics, the macro context and the company's news.

Faes Farma is a Spanish pharmaceutical company specializing in the development, manufacturing, and marketing of prescription drugs, mainly in allergology, dermatology, and central nervous system, with a business model based on proprietary innovation and international expansion. Faes Farma shows 24% revenue growth and a forward P/E of 13.49, suggesting an attractive valuation, although cash conversion (15.53%) and ROE (11.22%) are weak, limiting the quality of its moat.

Score by category

CategoryScore
Financial health6.7
Quality / Moat5.2
Valuation5.8
Growth7.3
Dividend7.4
Momentum4.5
Risk & Context7.5

OVERALL SCORE: 6.2/10

Context and risks

Elevated governance risk in Spain and regulatory exposure of the pharmaceutical sector to pricing pressure. However, the company has no direct exposure to current macro factors (oil, rates, geopolitics) that materially affect its business.

News considered in the analysis

  • Faes Farma (BME:FAE) Following Strong Half Year Earnings Still Looks Undervalued — Análisis positivo tras resultados semestrales sólidos, refuerza la percepción de infravaloración pero no aporta información nueva material.
  • European Penny Stocks To Watch In May 2026 — Listículo genérico sin información específica sobre la empresa.
  • 3 European Dividend Stocks Yielding Over 3.1% — Listículo genérico de dividendos, sin información nueva.
  • European Penny Stocks To Watch In December 2025 — Listículo desactualizado, sin relevancia.
  • 3 European Dividend Stocks Yielding Up To 9.3% — Listículo genérico de dividendos, sin información nueva.

Verdict: Hold; valuation is reasonable and growth is solid, but cash generation and return on capital need to improve to justify a more aggressive position.

Main risk: Weak cash conversion (15.53%) and regulatory risk in the Spanish pharmaceutical sector, with potential pricing pressure, are the main risks for Faes Farma.

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Automatically generated analysis from fundamental, market and news data. Not personalised financial advice — a research tool, not an individual recommendation. Past performance does not guarantee future results. Last update of this analysis: 2026-09-28. Legal notice, privacy & cookies.