Grifols SA (GRFS)

Price$7.82Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkLow earnings multiples imply skepticism; improving cash flow and deleveraging make that discount look too severe.

GRFS is Grifols, S.A.'s Nasdaq-listed ADR for non-voting Class B shares. The latest confirmed quote is near the lower part of its one-year range, while current market data show about 13.4 times trailing earnings, 9.2 times forward earnings, and 10.6 times trailing EV/EBITDA. EV/EBITDA compares the whole business value, including debt, with operating cash-like earnings. The equity ratios look inexpensive, but the enterprise multiple is less extreme because leverage is high. On balance, the discount looks larger than the execution risk warrants.

Big pictureDebt remains heavy, but refinancing and improving cash flow have materially strengthened near-term financial durability.

Cash durability is improving but still back-loaded. First-half free cash flow before M&A was €91 million versus negative €12 million a year earlier, while full-year guidance remains €500-575 million before M&A and dividends. Free cash flow is cash left after operating needs and investment. At June, liquidity was €2.03 billion; credit-agreement net debt was €7.8 billion at 4.2 times leverage, versus €8.84 billion and 5.4 times on reported measures. Refinancing removed major maturities until Q4 2028, and redeeming €500 million of high-cost 2030 bonds shows debt-first capital allocation.

Business strengthCore demand is defensive, but cash economics still move with plasma costs, pricing, inventory and currencies.

Plasma-derived medicines serve many chronic or life-threatening conditions, so demand is less economically cyclical than in most industrial businesses. Still, Grifols' economics can swing with plasma collection costs, inventory build, foreign exchange, reimbursement rules and regional pricing. In H1 2026, Biopharma grew 5.4% at constant currency and immunoglobulins 12.8%, while albumin fell 14.2% on China pricing and Diagnostics declined 9.7%. Group profit rose 28.7%, but inventory absorbed €184 million, making cash conversion the key quality test.

What could change the storyBull case needs margin-led growth and debt reduction; bear case centers on cash shortfalls or dilution.

Bull assumptions are 2026 adjusted EBITDA growth of 5-9% at constant currency, margin of at least 25%, free cash flow of €500-575 million, and leverage moving toward 3.5 times or lower by end-2027. A well-priced U.S. Biopharma IPO could accelerate debt paydown. Bear assumptions are weaker China pricing, adverse currencies, sustained inventory needs, disappointing SPARTA data, or poor capital-market execution. The AGM authorizes capital increases up to 50% and lets the board waive existing owners' first right to buy new shares for issuances up to 20%, so parent-share dilution remains possible.

AI: News

SPARTA follow-up completedGrifols finished patient follow-up in its large Phase 3 alpha-1 trial; topline results are due by year-end.

On August 10, Grifols said all 345 participants across 37 sites in 16 countries had completed follow-up in SPARTA, testing two Prolastin-C dose regimens in emphysema caused by alpha-1 antitrypsin deficiency. The clinical portion is now complete, with topline data expected by the end of 2026. Positive results could strengthen differentiation and demand in alpha-1; disappointing efficacy would weaken an important medium-term growth catalyst.

Half-year profit improvesFirst-half profit rose sharply, while free cash flow turned positive and full-year guidance was reaffirmed.

On July 28, Grifols reported H1 revenue of €3.574 billion, group profit of €227 million and adjusted EBITDA of €854 million. Free cash flow before M&A improved to €91 million, liquidity reached €2.03 billion and credit-agreement leverage was 4.2 times. Biopharma grew 5.4% at constant currency, led by immunoglobulins. The key watchpoint is that the full-year cash target still requires a much stronger second half.

Shareholder capital powers renewedShareholders renewed broad financing and buyback authority, preserving flexibility but leaving future dilution optionality.

On June 18, shareholders authorized the board to increase capital up to 50% over five years and exclude pre-emptive rights for increases up to 20%. They also renewed treasury-share purchases capped at 10% of capital and approved cancellation of treasury shares up to 10%, alongside the final dividend. These are authorizations, not announced transactions. They give management tools to refinance, repurchase or issue equity, so investors should watch which route is actually used.

U.S. biopharma IPO plannedGrifols proposed selling a minority U.S. Biopharma stake to fund debt reduction and strategic investment.

On March 24, Grifols approved evaluating an IPO of a minority interest in its U.S. Biopharma subsidiary while keeping majority control. Management said proceeds would strengthen the balance sheet, reduce debt and support growth. A strong valuation could unlock value and accelerate deleveraging; weak pricing could transfer too much future U.S. economics to new investors. The transaction remains subject to market, legal and regulatory conditions and may not be completed.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	€7.52B	€7.21B	€6.59B	€6.06B	€4.93B	€5.34B	€5.10B	€4.49B	€4.32B	€4.05B	€3.93B
Gross profit	€2.86B	€2.79B	€2.48B	€2.21B	€1.96B	€2.26B	€2.34B	€2.05B	€2.15B	€1.91B	€1.93B
Gross margin	38.00%	38.75%	37.67%	36.51%	39.78%	42.23%	45.92%	45.68%	49.84%	47.22%	49.08%
Research & development	€426.0M	€384.0M	€395.3M	€361.1M	€354.9M	€294.2M	€276.0M	€240.7M	€288.3M	€197.6M	€224.2M
Operating expenses	€1.61B	€1.64B	€1.77B	€1.56B	€1.42B	€1.28B	€1.22B	€1.06B	€1.15B	€972.9M	€960.6M
Operating income	€1.25B	€1.19B	€782.3M	€782.4M	€595.1M	€996.1M	€1.13B	€994.1M	€1.00B	€939.4M	€970.4M
Operating margin	16.63%	16.53%	11.87%	12.90%	12.06%	18.65%	22.19%	22.16%	23.24%	23.20%	24.66%
EBITDA	€1.64B	€1.63B	€1.23B	€1.19B	€954.8M	€1.32B	€1.43B	€1.22B	€1.22B	€1.14B	€1.16B
EBITDA margin	21.81%	22.60%	18.64%	19.68%	19.36%	24.68%	28.12%	27.25%	28.23%	28.18%	29.49%
Net income	€402.0M	€212.8M	€163.7M	€247.9M	€265.3M	€709.0M	€648.6M	€594.4M	€661.3M	€544.5M	€531.4M
Net profit margin	5.34%	2.95%	2.48%	4.09%	5.38%	13.28%	12.72%	13.25%	15.32%	13.45%	13.51%
Basic EPSper basic share	€0.59	€0.23	€0.06	€0.27	€0.28	€0.90	€0.91	€0.87	€0.97	€0.80	€0.78
Diluted EPSper diluted share	€0.59	€0.23	€0.06	€0.27	€0.28	€0.90	€0.91	€0.87	€0.97	€0.80	€0.78

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of GRFS
Holder	Shares held
BRANDES INVESTMENT PARTNERS, LP	37.82M
Capital World Investors	22.91M
Permian Investment Partners, LP	19.74M
Black Creek Investment Management Inc.	7.68M
BANK OF AMERICA CORP /DE/	6.55M
MILLENNIUM MANAGEMENT LLC	4.37M
Flat Footed LLC	4.35M
Jupiter Topco LLC	2.96M
ARMISTICE CAPITAL, LLC	2.94M
MORGAN STANLEY	2.66M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	2.65M
NEW YORK STATE COMMON RETIREMENT FUND	2.45M
BlackRock, Inc.	2.03M
JPMORGAN CHASE & CO	1.93M
NORGES BANK	1.84M
UBS Group AG	1.83M
WHITEBOX ADVISORS LLC	1.6M
Tidal Investments LLC	1.23M
GOLDMAN SACHS GROUP INC	1.18M
SEI INVESTMENTS CO	1.11M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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