Recordati SpA (FRA:RER1) Risk Assessment

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What is Recordati SpA Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Recordati SpA is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of Recordati SpA's Risk Assessment

For the Drug Manufacturers - General subindustry, Recordati SpA's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Recordati SpA's Risk Assessment Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Recordati SpA's Risk Assessment falls into.

Recordati SpA (FRA:RER1) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Recordati SpA Risk Assessment Related Terms

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Recordati SpA (FRA:RER1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Recordati SpA (FRA:RER1) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

RICFY:USA REC:Italy RECm:UK 0KBS:UK

Address

Via Matteo Civitali 1, MIlan, ITA, 20148

Website

https://www.recordati.com

Recordati SpA is a drug manufacturing company that focuses on specialty pharmaceuticals. The company produces and promotes medicines globally that focus on primary-care therapies and rare diseases. Recordati uses strategic partnerships as part of its long-term growth. The vast majority of the company's revenue is generated in Italy, followed by the United States, France, and Germany. Recordati reports two operating segments: Specialty and Primary care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment, which includes the production of active ingredients.

Recordati SpA (FRA:RER1) Headlines

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