Grifols, S.A. (GRFS) AI Stock Analysis
GRFS AI stock analysis summary
AI ResearchGrifols, S.A. (GRFS) is a global healthcare company specializing in plasma-derived medicines and other therapeutic products. For the trailing twelve months ended June 30, 2026, the company generated $7.42B in revenue with an operating margin of 15.9%. However, Grifols carries substantial leverage, holding $8.52B in total debt against $529.0M in cash and short-term investments.
- Market cap
- $5.20B
- Revenue (TTM)
- $7.42B
- P/E
- 9.9x fwd 5.8x
- 1Y return
- -20.6% S&P 500 16.8%
- Avg. target
- $10.87 42.2% vs last close
Bull case
- Grifols achieved free cash flow of $751.1M and operating cash flow of $1.01B in FY2025, rebounding from negative free cash flow of -$91.6M in FY2023.
- The stock trades at a forward P/E of 5.8x and a price-to-book ratio of 0.8x, well below the median forward P/E of 17.3x for its US-listed Healthcare peers.
- Analysts forecast EPS growth of 34.6% to $1.16 for FY2026, alongside a mean price target of $10.87 that sits 42.2% above the last close.
Bear case
- Grifols carries $8.52B in total debt against just $529.0M in cash and short-term investments, resulting in net debt of $7.99B.
- Revenue growth has stalled in recent periods, posting a 0.2% increase in FY2025 and a year-over-year quarterly decline of 0.9% for the quarter ended June 30, 2026.
- The stock has delivered weak long-term returns, falling 44.6% over five years while the S&P 500 rose 83.0%.
What Grifols does
Grifols, S.A., based in Barcelona, Spain, procures, manufactures, and distributes therapeutic products, with a core focus on hemoderivatives. Founded in 1940, the company operates across five segments: Bioscience, Hospital, Diagnostic, Bio Supplies, and Others. The Bioscience unit produces plasma-derived treatments for chronic and rare conditions, including immunoglobulins, albumin, alpha-1 antitrypsin, clotting factors, and hyperimmune globulins. The Hospital segment provides clinical nutrition, intravenous therapy, non-biological pharmaceuticals, and medical devices. Diagnostic develops screening and disease monitoring solutions, while Bio Supplies provides biological materials for clinical trials and life-science research. Grifols serves blood banks, hospitals, healthcare providers, and national health systems globally.
Growth and profitability
Over a five-year period from FY2020 to FY2025, Grifols achieved a revenue compound annual growth rate of 6.2%. Annual revenue expanded from $4.93B in FY2021 to $7.21B in FY2024 and reached $7.23B in FY2025. Gross margin shifted from 39.8% in FY2021 to 35.7% in FY2025, while operating margin rose from 12.1% to 16.4% over the same timeframe. Net income improved to $386.1M in FY2025, producing diluted EPS of $0.81. In the latest quarter ended June 30, 2026, quarterly revenue fell 0.9% year-over-year, while quarterly earnings grew 32.9% year-over-year, bringing trailing twelve-month revenue to $7.42B with EPS of $0.77.
Balance sheet and cash flow
As of June 30, 2026, Grifols held $529.0M in cash and short-term investments compared to $8.52B in total debt, resulting in net debt of $7.99B and a debt-to-equity ratio of 1.54. The company maintains a current ratio of 2.37 and shareholders' equity of $5.55B on total assets of $20.09B. For FY2025, operating cash flow reached $1.01B and free cash flow was $751.1M. Capital allocation in FY2025 included capital expenditures of $254.5M, share buybacks of $123.9M, and dividend distributions totaling $122.9M.
Valuation and performance
Grifols trades at a trailing price-to-earnings multiple of 9.9x and a forward P/E of 5.8x, both below the median of its US-listed Healthcare peers of 24.6x and 17.3x, respectively. Its price-to-sales ratio stands at 0.7x compared to the peer median of 4.1x, and its enterprise value-to-EBITDA multiple is 7.9x versus the peer median of 12.0x. Grifols closed at $7.64 on October 16, 2026, trading 4.5% below its 200-day average. Over the past year, GRFS shares declined 20.6% while the S&P 500 gained 16.8%, and over five years the stock fell 44.6% against an 83.0% gain for the index.
GRFS dividend
Grifols pays an annual forward dividend of $0.11 per share, representing a dividend yield of 1.39% and a payout ratio of 11.5%. The company has paid dividends for 2 consecutive years, though its 5-year annualized dividend growth stands at -3.0%. The last ex-dividend date was July 2, 2026.
What analysts expect
Wall Street coverage tracked on Grifols includes 1 Strong Buy and 1 Hold rating, with no Buy, Sell, or Strong Sell ratings. The mean analyst price target is $10.87, representing upside of 42.2% from the last closing price of $7.64. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.16, up 34.6%, on revenue of $7.69B. For the following fiscal year, 2 analysts project EPS of $1.44 on revenue of $8.16B. Over the last 4 quarters, Grifols beat EPS estimates 1 time.
Key risks and what to watch
- High balance sheet leverage is reflected in a debt-to-equity ratio of 1.54 and total debt of $8.52B as of June 30, 2026.
- Earnings execution has been inconsistent, with the company beating analyst EPS estimates in only 1 of the last 4 quarters.
- Gross margin contracted from 39.8% in FY2021 to 35.7% in FY2025.
- The stock displays elevated market sensitivity with a beta of 1.20 and remains down 17.2% year-to-date.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GRFS AI stock analysis
This page is an AI-written research summary of Grifols, S.A. (GRFS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GRFS income statement, GRFS balance sheet, GRFS key metrics, GRFS analyst forecast, GRFS chart. See the GRFS stock overview for the latest quote and news.
GRFS AI stock analysis FAQ
Does Grifols pay a dividend?
Yes, Grifols pays an annual forward dividend of $0.11 per share, which corresponds to a 1.39% dividend yield and an 11.5% payout ratio. Its last ex-dividend date was July 2, 2026.
What is Grifols' debt position?
As of June 30, 2026, Grifols held $8.52B in total debt and $529.0M in cash and short-term investments, yielding a net debt position of $7.99B and a debt-to-equity ratio of 1.54.
What are analysts forecasting for Grifols' earnings?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.16 on revenue of $7.69B. For the subsequent fiscal year, 2 analysts project EPS of $1.44 on revenue of $8.16B.
How is Grifols valued compared to healthcare peers?
Grifols trades at a trailing P/E of 9.9x, an EV/EBITDA of 7.9x, and a price-to-sales ratio of 0.7x, compared to median valuations of 24.6x, 12.0x, and 4.1x, respectively, for its US-listed Healthcare peers.