One-glance verdict
Undervalued
$23.05 our estimate vs market $8.09
Wall Street consensus: $10.37 (-55.0% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Grifols, S.A.
GRFS · NMS · Healthcare · Drug Manufacturers - General
Current price
$8.09
52-week range
$6.96 - $9.90
Market cap
$5.50B
Balance sheet
Stretched
2.17x Stretched
Net debt $9.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.3% last year.
- Reward Returns 6.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Grifols, S.A.
Grifols makes medicines from human plasma used to treat diseases and also provides diagnostic tests and hospital supplies. The money they make primarily comes from selling these plasma-based medicines, and it matters because their success depends on reliably getting plasma and efficiently producing these life-saving treatments.
How the company got here
Grifols, S.A. was founded in 1909 in Barcelona, Spain, starting as a small pharmaceutical laboratory. Over the decades, it grew by focusing on plasma-derived medicines, which are treatments made from the proteins found in human blood plasma. A key turning point was its expansion into the United States, which has a large supply of plasma and a significant market for these specialized therapies. This strategic move allowed Grifols to become a global leader in its field, building a reputation for quality and innovation in a highly regulated industry.
What it actually does
Grifols is primarily in the business of making medicines from human blood plasma. Think of it like this: they collect plasma from donors, then use a complex scientific process to separate out specific proteins. These proteins are then turned into life-saving treatments for people with various diseases. They also have a division that makes equipment and tests used in hospitals and labs to ensure blood transfusions are safe and to diagnose illnesses.
Biopharma
This is Grifols' largest business, focusing on medicines derived from human plasma. These treatments are used for a range of serious conditions, including immune deficiencies (where the body's defense system is weak), neurological disorders like multiple sclerosis, and liver diseases. The company collects plasma, processes it to isolate specific proteins like immunoglobulins and albumin, and then manufactures these into injectable therapies. This segment is the main engine of Grifols' revenue, making up a significant portion of its overall sales.
Diagnostic
The Diagnostic segment provides tools and services that help doctors and hospitals make informed medical decisions. This includes equipment and chemical tests (reagents) used in laboratories to analyze blood and other samples. They also offer services related to transfusion medicine, ensuring that donated blood is safe and compatible for patients needing transfusions. This part of the business supports the broader healthcare system by aiding in disease detection and patient care.
Bio Supplies
This segment acts as a supplier of essential biological products, primarily to other pharmaceutical and biotechnology companies. They provide intermediate plasma products and other biological materials that these companies use in their own research and development or manufacturing processes. Essentially, Grifols sells raw or semi-processed biological ingredients that are crucial for creating other advanced therapies and diagnostic tools, contributing to the wider life sciences industry.
What management is betting on now
Grifols is currently focused on expanding its plasma collection capabilities, particularly in the United States, to ensure a steady supply for its Biopharma segment. They are also investing in research and development to create new and improved plasma-derived therapies, aiming to address unmet medical needs. Additionally, the company is working to optimize its manufacturing processes and supply chain to improve efficiency and reduce costs. These efforts are designed to strengthen its market position and drive future growth in its core businesses.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $23.05 vs current price $8.09
Wall Street consensus is the average analyst price target: $10.37 (-55.0% lower than our fair-value estimate).
Our most-likely fair value is $23.05 a share — about 185.1% above today's price of $8.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $9.8B. Interest coverage 2.2x.
Net debt
$9.84B
Interest coverage
2.17x
Grifols, S.A.'s profit covers its interest bill about 2.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
GRFS
BASELINE
Grifols, S.A.
Total debt $10.44B Interest coverage 2.17x This is the baseline the peer rows are being compared against.
Total debt $10.90B Interest coverage 8.12x +274% vs GRFS Carries about 3.7x more debt cushion than GRFS.
Total debt $35.17B Interest coverage 3.14x +44% vs GRFS Carries about 1.4x more debt cushion than GRFS.
Total debt — Interest coverage 0.61x -72% vs GRFS Carries about 3.6x less debt cushion than GRFS.
Total debt $1.98B Interest coverage 342.44x +15,667% vs GRFS Carries about 157.7x more debt cushion than GRFS.
What you should know
The case for and against GRFS
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.3% last year.
-
Returns 6.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.50x
Forward P/E
6.07x
P/B
1.77x
P/S
0.74x
EV/EBITDA
13.49x
PEG ratio
0.19x
Profitability
How much profit each dollar creates
Gross margin
37.8%
Operating margin
15.9%
Net margin
6.1%
ROE
6.9%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.17x
Current ratio
2.37x
Quick ratio
0.70x
Total debt
$10.44B
Total cash
$599.26M
Growth
How the business has been compounding
Revenue TTM
$8.28B
Revenue 5Y CAGR
7.5%
EPS TTM
0.77
EPS 5Y CAGR
23.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.17B
Free CF TTM
$696.35M
FCF margin
8.4%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
38.0%
Last ex-div date
2026-07-02