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Roche Holding (CH:ROG)
:ROG
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Roche Holding AG
(OTC:ROG)
Rating:75Outperform
Price Target:
CHF298.00
â–²(11.32%Upside)
Positive Factors
Investment
Roche announced a $50 billion investment in the US for Pharma and diagnostics, including research and development sites and new manufacturing facilities.
Market Share
Roche continues to take market share in the US across various indications with increasing percentages.
Pipeline Development
Another high profile phase 2 asset is now moving into phase 3.
Negative Factors
Currency Impact
CHF strength vs the USD hasn't been helpful.
Financial Outlook
The mid-term earnings growth outlook for Roche is projected at 4%, which is lower compared to sector peers at 8%.
Sales Performance
Vabysmo missed consensus by 8% due to lower reimbursement by US charities.
Roche Holding AG (ROG) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF216.31B
Dividend Yield3.42%
Average Volume (3M)1.01M
Price to Earnings (P/E)25.8
Beta (1Y)1.15
Revenue Growth3.03%
EPS Growth-27.86%
CountryCH
Employees103,249
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)8.57
Shares Outstanding702,562,700
10 Day Avg. Volume823,103
30 Day Avg. Volume1,005,602
Financial Highlights & Ratios
PEG Ratio-2.92
Price to Book (P/B)7.46
Price to Sales (P/S)0.00
P/FCF Ratio20.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF287.27Price Target Upside7.31% Upside
Rating ConsensusHold
Number of Analyst Covering12
Roche Holding AG Business Overview & Revenue Model
Company DescriptionRoche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company offers pharmaceutical products for treating oncology, neuroscience, infectious, immunology, cardiovascular and metabolism, ophthalmology, and respiratory, as well as anemia, cancer, dermatology, hemophilia, inflammatory and autoimmune, neurological, and transplantation. It also offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases. In addition, the company supplies diagnostic instruments and reagents. The company was founded in 1896 and is headquartered in Basel, Switzerland.
How the Company Makes MoneyRoche Holding AG generates revenue through the development, manufacturing, and sale of pharmaceutical products and diagnostic solutions. The company operates two primary divisions: Pharmaceuticals and Diagnostics. The Pharmaceuticals division is the main revenue driver, offering prescription medicines in areas such as oncology, immunology, infectious diseases, ophthalmology, and neuroscience. Roche's Diagnostics division provides a broad array of testing solutions, including in vitro diagnostics, molecular diagnostics, and tissue-based cancer diagnostics. Furthermore, Roche benefits from strategic partnerships and collaborations, enhancing its research and development capabilities and expanding its market reach. The company also invests heavily in research and development to innovate and maintain a competitive edge in the healthcare industry.
Roche Holding AG Earnings Call Summary
Earnings Call Date:Jan 30, 2025
(Q4-2024)
| % Change Since: -1.51%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
Roche demonstrated strong financial performance in 2024 with significant growth in sales, operating profit, and cash flow. The pharmaceutical and diagnostics divisions both showed robust growth, supported by strategic acquisitions and new product launches. However, challenges such as the decline in COVID-19 sales, impairments affecting net income, and market challenges in China were notable concerns. Overall, the highlights substantially outweigh the lowlights.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Group sales grew 7%, with the base business growing 9%, pharma 9%, and diagnostics 8%. Core operating profit increased by 14%, with a core operating margin up 2.1 percentage points. Operating free cash flow increased by 34% to CHF21.2 billion.
Pharmaceutical Achievements
Pharma sales grew 8% to CHF46.2 billion, driven by Vabysmo, Phesgo, and Ocrevus, among others. The company launched two new medicines, PiaSky and Itovebi, in 2024.
Diagnostics Growth
Diagnostics division reported 4% sales growth, with a strong base business growth of 8% driven by immunodiagnostics and clinical chemistry.
Pipeline and Product Launches
Roche achieved several key milestones, including EU approval for Vabysmo pre-filled syringe and positive readouts for trontinemab and NXT007. Launches included Mass Spectrometry system and cobas 6800/8800 version 2.
Strategic Acquisitions and Partnerships
Acquisition of Poseida to expand the allogeneic CAR-T portfolio, introducing potential treatments for oncology and autoimmune diseases.
Negative Updates
COVID-19 Sales Decline
Final impact of COVID-19 sales reduction in 2024 amounted to CHF1.1 billion, aligning with guidance but marking the end of a significant revenue stream.
Challenges in China
Diagnostics sales in China were impacted by volume-based procurement and reimbursement reductions, leading to a lower growth projection for 2025.
Impairments Affecting Net Income
IFRS net income decreased by 19% due to two major impairments totaling CHF3.9 billion, reflecting unmet expectations of acquired assets.
Patent and Biosimilar Concerns
Continued concern over patent expirations and biosimilar competition, notably impacting Actemra and Ocrevus in the future.
Company Guidance
During the call, Roche Group provided detailed guidance on its fiscal 2024 performance, highlighting several key metrics. The company achieved an overall group sales growth of 7%, with the base business excluding COVID-19 impacts growing by an impressive 9%. The pharmaceutical division reported a 9% increase, and the diagnostics division saw an 8% rise. Roche confirmed that the final impact of COVID-19 sales reduction was CHF1.1 billion, aligning with their initial guidance. The loss of exclusivity (LOE) impact was CHF1 billion, slightly better than expected. The core operating profit grew by 14%, and the group core operating margin increased by 2.1 percentage points. Additionally, core EPS growth was 12%, excluding tax effects, or 7% when including them. Operating free cash flow surged by 34% to CHF21.2 billion, reflecting strong financial health. Looking forward, Roche anticipates mid-single digit group sales growth and high-single digit core EPS growth for 2025, despite an expected LOE impact of CHF1.2 billion. The company also plans to continue its tradition of increasing dividends, marking the 38th consecutive year of growth in this area.Roche Holding AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 59.69B | 62.40B | 60.44B | 63.28B | 62.80B | 58.32B | Gross Profit |
| 43.94B | 46.11B | 44.08B | 44.44B | 43.10B | 41.97B | EBIT |
| 17.74B | 13.42B | 15.39B | 18.18B | 17.28B | 17.73B | EBITDA |
| 17.60B | 16.62B | 18.41B | 20.80B | 22.19B | 22.97B | Net Income Common Stockholders |
| 10.62B | 8.28B | 11.50B | 12.42B | 13.93B | 14.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.90B | 17.32B | 10.51B | 9.77B | 13.03B | 12.33B | Total Assets |
| 61.02B | 101.80B | 90.47B | 88.15B | 92.32B | 86.14B | Total Debt |
| 30.06B | 36.35B | 30.78B | 26.54B | 32.55B | 15.41B | Net Debt |
| 28.22B | 29.38B | 25.41B | 21.55B | 25.70B | 9.68B | Total Liabilities |
| 49.36B | 65.64B | 57.20B | 56.14B | 63.97B | 46.37B | Stockholders Equity |
| 9.47B | 31.77B | 29.32B | 27.99B | 24.49B | 36.34B |
| Cash Flow | Free Cash Flow | ||||
| 11.42B | 15.09B | 11.45B | 13.34B | 16.02B | 11.47B | Operating Cash Flow |
| 15.82B | 20.09B | 16.09B | 17.89B | 20.57B | 18.16B | Investing Cash Flow |
| -13.14B | -11.39B | -10.64B | -3.57B | -6.55B | -9.08B | Financing Cash Flow |
| -993.00M | -6.82B | -4.24B | -15.72B | -12.70B | -9.24B |
Roche Holding AG Technical Analysis
Positive
267.70
Price Trends
264.87
Positive
273.72
Negative
265.02
Positive
Market Momentum
0.53
Negative
56.82
Neutral
87.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ROG, the sentiment is Positive. The current price of 267.7 is above the 20-day moving average (MA) of 261.77, above the 50-day MA of 264.87, and above the 200-day MA of 265.02, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ROG.
Roche Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | CHF184.76B | 17.00 | 3.61% | 6.34% | -13.16% | ||
78 Outperform | CHF16.96B | 43.85 | 0.89% | 3.82% | 57.08% | ||
75 Outperform | CHF216.31B | 25.78 | 26.76% | 3.42% | 3.03% | -27.86% | |
73 Outperform | CHF35.86B | 35.74 | 5.23% | 0.36% | 3.90% | 6.76% | |
64 Neutral | CHF39.49B | 62.85 | 0.71% | -2.13% | 2.50% | ||
54 Neutral | $5.31B | 3.29 | -45.39% | 2.79% | 16.77% | -0.07% |
* Healthcare Sector Average
Performance Comparison
CH:ROG
Roche Holding AG
268.20
36.17
15.59%
CH:NOVN
Novartis AG
97.08
6.04
6.63%
CH:LONN
Lonza Group Ltd
573.40
75.88
15.25%
CH:STMN
Straumann Holding AG
106.75
-7.65
-6.69%
CH:ALC
Alcon
72.02
-9.47
-11.62%
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.