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Roche Holding (RHHBY)
OTHER OTC:RHHBY
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Roche Holding
(OTC:RHHBY)
73Outperform
Positive Factors
Financial Performance
The Roche model was updated and numbers raised post recent business trends.
Therapeutic Efficacy
Gazyva showed potential best-in-class profile in lupus nephritis and is likely to be the starter therapy of choice versus GSK's Benlysta.
Negative Factors
Clinical Trial Results
The high placebo response rate in males was notable, where placebo achieved a 66.7% complete renal response compared to 42.9% for Gazyva.
Roche Holding (RHHBY) vs. S&P 500 (SPY)
Market Cap
$282.48B
Dividend Yield1.93%
Average Volume (3M)3.51M
Price to Earnings (P/E)29.8
Beta (1Y)0.19
Revenue Growth5.15%
EPS Growth-26.52%
CountryUS
Employees103,605
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)1.47
Shares Outstanding5,620,501,500
10 Day Avg. Volume6,818,134
30 Day Avg. Volume3,510,706
Financial Highlights & Ratios
PEG Ratio18.00
Price to Book (P/B)N/A
Price to Sales (P/S)3.84
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$42.00Price Target Upside0.00%
Rating ConsensusHold
Number of Analyst Covering2
Roche Holding Business Overview & Revenue Model
Company DescriptionRoche Holding AG, commonly known as Roche, is a Swiss multinational healthcare company that operates in two main sectors: Pharmaceuticals and Diagnostics. The company is renowned for its innovative solutions in these areas, offering a wide range of prescription medicines and diagnostic tests. In the Pharmaceuticals division, Roche specializes in oncology, immunology, infectious diseases, ophthalmology, and neuroscience, with a focus on personalized healthcare. The Diagnostics division provides tools and tests for disease screening, diagnosis, and monitoring, serving hospitals, laboratories, and healthcare providers globally.
How the Company Makes MoneyRoche makes money primarily through the sale of its pharmaceutical products and diagnostic tests. The Pharmaceuticals division, which is the larger of the two, generates revenue by developing and selling prescription drugs, particularly in areas where Roche has a strong market presence such as oncology, where it offers targeted therapies for cancer treatment. The Diagnostics division generates revenue by providing diagnostic equipment and tests, which are used in clinical laboratories and hospitals to diagnose and monitor various diseases. Roche's revenue model also benefits from collaborations and partnerships with other healthcare and biotechnology companies, which can involve co-development agreements and licensing deals that provide additional streams of income. The company's commitment to research and development, aimed at creating innovative healthcare solutions, is a significant factor contributing to its earnings.
Roche Holding Financial Statement Overview
Summary
Roche Holding shows stable financial performance with robust revenue growth and strong cash flows. However, declining net income and return on equity, along with increased leverage, pose challenges to its financial health.Income Statement
Roche Holding has shown consistent revenue growth with a compound annual growth rate of approximately 1.33% over the past five years. The gross profit margin is strong, averaging around 72.5%, indicating efficient cost management. However, there has been a decline in net income, leading to a reduced net profit margin from 24.5% in 2020 to 13.3% in 2024. EBIT and EBITDA margins have been stable but slightly declining, which could indicate pressure on operational efficiency.75
Positive
Balance Sheet
The company's equity ratio is solid at around 31.2%, reflecting a stable capital structure. The debt-to-equity ratio has increased due to rising total debt, but it remains manageable at approximately 1.14 in 2024. Return on equity has decreased from 39.4% in 2020 to 26.1% in 2024, suggesting a decline in profitability relative to shareholder equity. The balance sheet remains robust, but the increase in leverage warrants monitoring.80
Positive
Cash Flow
Roche Holding's operating cash flow is strong, and the company maintains a healthy free cash flow to net income ratio, indicating efficient cash conversion. Free cash flow growth has been positive, but the growth rate has slowed, suggesting potential challenges in maintaining past growth levels. The operating cash flow to net income ratio is above 2, demonstrating strong cash generation capabilities relative to earnings.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 74.61B | 62.40B | 60.44B | 63.28B | 62.80B | 58.32B | Gross Profit |
| 54.86B | 46.11B | 44.08B | 42.88B | 43.15B | 42.15B | EBIT |
| 21.30B | 13.42B | 15.39B | 17.48B | 18.16B | 18.54B | EBITDA |
| 21.94B | 16.62B | 18.41B | 20.86B | 22.86B | 23.08B | Net Income Common Stockholders |
| 12.80B | 8.28B | 11.50B | 12.42B | 13.93B | 14.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.51B | 17.32B | 10.51B | 9.77B | 13.03B | 12.33B | Total Assets |
| 90.47B | 101.80B | 90.47B | 88.15B | 92.32B | 86.14B | Total Debt |
| 30.78B | 36.35B | 30.78B | 26.54B | 32.55B | 15.41B | Net Debt |
| 25.41B | 29.38B | 25.41B | 21.55B | 25.70B | 9.68B | Total Liabilities |
| 57.20B | 65.64B | 57.20B | 56.14B | 63.97B | 46.37B | Stockholders Equity |
| 29.32B | 31.77B | 29.32B | 27.99B | 24.49B | 36.34B |
| Cash Flow | Free Cash Flow | ||||
| 14.52B | 15.09B | 11.45B | 13.86B | 16.43B | 11.88B | Operating Cash Flow |
| 19.92B | 20.09B | 16.09B | 18.41B | 20.98B | 18.57B | Investing Cash Flow |
| -18.22B | -11.39B | -10.64B | -3.54B | -6.55B | -9.07B | Financing Cash Flow |
| 1.03B | -6.82B | -4.24B | -16.27B | -13.11B | -9.67B |
Roche Holding Technical Analysis
Positive
42.00
Price Trends
39.14
Positive
38.12
Positive
37.91
Positive
Market Momentum
1.02
Positive
56.71
Neutral
65.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHHBY, the sentiment is Positive. The current price of 42 is above the 20-day moving average (MA) of 41.67, above the 50-day MA of 39.14, and above the 200-day MA of 37.91, indicating a bullish trend. The MACD of 1.02 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 65.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RHHBY.
Roche Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $403.76B | 28.79 | 20.06% | 2.96% | -4.51% | 3.69% | |
73 Outperform | $282.48B | 29.77 | 26.76% | 1.93% | 5.15% | -26.52% | |
72 Outperform | $150.98B | 18.97 | 9.05% | 6.34% | 8.77% | 272.80% | |
71 Outperform | $240.55B | 14.05 | 40.81% | 3.28% | 6.85% | 4577.79% | |
65 Neutral | $786.75B | 74.24 | 84.84% | 0.62% | 32.00% | 102.18% | |
60 Neutral | $128.07B | ― | -39.10% | 3.83% | 7.32% | -214.24% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
RHHBY
Roche Holding
42.00
7.75
22.63%
BMY
Bristol-Myers Squibb
61.51
9.70
18.72%
LLY
Eli Lilly & Co
824.06
73.98
9.86%
JNJ
Johnson & Johnson
165.86
8.18
5.19%
MRK
Merck & Company
94.73
-24.67
-20.66%
PFE
Pfizer
25.99
-0.37
-1.40%
Roche Holding Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 8.08% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Positive
Roche reported strong financial results for 2024 with significant growth in sales and core operating profit. The company successfully managed the decline in COVID-19 sales through robust base business growth and achieved key milestones in both the pharma and diagnostics segments. However, the net income decline due to impairments and challenges in some markets posed concerns. Overall, the sentiment leans positive with a strong pipeline and strategic focus on future growth.Highlights
Strong Group Sales and Core Operating Profit Growth
Roche Group sales grew by 7% with a base business growth of 9%, excluding COVID-19. Core operating profit increased by 14% with a 2.1 percentage point rise in core operating margin.
Diagnostics and Pharma Achievements
Pharma sales grew 8% to CHF46.2 billion and diagnostics base business grew 8%. Key approvals and launches included EU approval for Vabysmo pre-filled syringe and the launch of Mass Spectrometry and other diagnostic tools.
Impressive Cash Flow and Dividend Growth
Operating free cash flow increased by 34% to CHF21.2 billion. The dividend was increased for the 38th consecutive year.
Robust Pipeline and R&D Progress
Roche anticipates significant Phase III readouts in 2025, with a strategic focus on new molecular entities and a strong late-stage pipeline.
Lowlights
Impact of COVID-19 and Currency Fluctuations
Roche experienced a CHF1.1 billion impact from the decline in COVID-19 sales and a 4 percentage point negative impact on sales due to currency fluctuations.
Net Income Decline and Impairments
IFRS net income fell by 19% due to major impairments and higher tax expenses. Two major impairments were noted at the end of 2024.
Challenges in Key Markets
Sales in Japan declined by 2% due to mandatory price cuts, and challenges in China due to volume-based procurement and reimbursement reductions impacted sales growth.
Company Guidance
In the call transcript, Roche Group gave comprehensive guidance on their financial performance and strategic outlook for 2024 and beyond. The company reported a 7% growth in group sales, with the base business, excluding COVID-19 impacts, achieving a remarkable 9% increase. The pharma segment grew by 9%, and diagnostics saw an 8% rise. Core operating profit surged by 14%, while the group core operating margin improved by 2.1 percentage points. Core EPS grew by 12% excluding tax effects, and operating free cash flow skyrocketed by 34% to CHF21.2 billion. Roche achieved significant milestones, including EU approval for Vabysmo and advancements in various trials. They anticipate 2025 as a pivotal year, with numerous Phase III readouts and strategic developments in their pipeline. Additionally, they project mid-single digit sales growth and high-single digit core EPS growth for 2025, aiming to increase dividends further.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.