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Faes FarmaXMAD:FAE +0.23%93 5-Year Yield-on-Cost % is 2.95 as of Jul. 22, 2026, which is 19% below its 10-year median of 3.65. GuruFocus rates XMAD:FAE with a GF Score™ of 93/100 and a GF Value™ of €5.18 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 513 Drug Manufacturers companies, Faes Farma ranks better than 56.34% on this metric.
Faes Farma's yield on cost for the quarter that ended in Dec. 2025 was 2.95.
The historical rank and industry rank for Faes Farma's 5-Year Yield-on-Cost % or its related term are showing as below:
XMAD:FAE'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2 Med: 3.65 Max: 6.28
Current: 2.95
During the past 13 years, Faes Farma's highest Yield on Cost was 6.28. The lowest was 2.00. And the median was 3.65.
XMAD:FAE's 5-Year Yield-on-Cost % is ranked better than 56.34% of 513
companies
in the Drug Manufacturers industry
Industry Median: 2.29
vs XMAD:FAE: 2.95
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Faes Farma 5-Year Yield-on-Cost % Related Terms
XMAD:FAE vs ZTS, UTHR, VTRS: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Faes Farma 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Faes Farma's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Faes Farma is calculated as
Faes Farma (XMAD:FAE) has a 5-Year Yield-on-Cost % of 2.95 as of Jul. 22, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Faes Farma and its competitors. This is 19% below median its historical median of 3.65. Over the past decade, Faes Farma's 5-Year Yield-on-Cost % has ranged from 2.00 to 6.28. According to the industry distribution chart, Faes Farma ranks #224 out of 513 companies in the Drug Manufacturers industry, placing it in the top 43.7%.
Is Faes Farma's 5-Year Yield-on-Cost % too high?
Faes Farma's current 5-Year Yield-on-Cost % of 2.95 is 19% below median its 10-year median of 3.65. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.28. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.29. Faes Farma's value of 2.95 is 28.8% above this industry median. Based on the distribution chart, Faes Farma ranks #224 out of 513 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Faes Farma has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's 5-Year Yield-on-Cost % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #224 out of 513 companies for 5-Year Yield-on-Cost %. This puts Faes Farma in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.29. Faes Farma's value of 2.95 is 28.8% above this benchmark. Historically, Faes Farma's own 5-Year Yield-on-Cost % has ranged from 2.00 to 6.28 over the past decade. While the company's 10-year median is 3.65 vs. the industry median of 2.29, Faes Farma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.29, based on 513 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Faes Farma's current 5-Year Yield-on-Cost % of 2.95 is 28.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Faes Farma and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current 5-Year Yield-on-Cost % is 2.95, which is 19% below median its own 10-year median of 3.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (XMAD:FAE) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.18, compared to a current price of €4.36 — trading 15.9% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.95, which is 19% below median its 10-year median of 3.65 and 28.8% above the Drug Manufacturers industry median of 2.29. Faes Farma's overall GF Score™ is 93/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Faes Farma (XMAD:FAE), the current 5-Year Yield-on-Cost % is 2.95 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Faes Farma (XMAD:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.36 is trading 15.9% below its estimated GF Value™ of €5.18.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for XMAD:FAE:
5-Year Yield-on-Cost %: 2.95 (19% below median its 10-year median of 3.65)
GF Value™: €5.18 vs. price of €4.36 (15.9% below fair value)
Industry Position: 28.8% above the Drug Manufacturers median (#224 of 513)
No single metric tells the full story. See the XMAD:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
93GF Score
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