Laboratorios Farmaceuticos Rovi (ROVI) AI Stock Analysis

• Market Cap: €2.84B
• Dividend Yield: 1.67%
• Average Volume (3M): 129.77K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.50
• Revenue Growth: -3.73%
• EPS Growth: -7.56%
• Country: ES
• Employees: 2,197
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): 0.42
• Shares Outstanding: 51,235,764
• 10 Day Avg. Volume: 95,109
• 30 Day Avg. Volume: 129,773
• PEG Ratio: -1.25
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 42.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €75.00
• Price Target Upside: 33.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: €60.00 ▲(6.95% Upside)

Laboratorios Farmaceuticos Rovi's overall stock score is driven by strong financial performance and a fair valuation. However, mixed sentiment from the earnings call and neutral technical indicators suggest caution. The company needs to address revenue decline and CDMO sales drop to improve its outlook.

Laboratorios Farmaceuticos Rovi Business Overview & Revenue Model

Company Description

Laboratorios Farmaceuticos Rovi (ROVI) is a Spanish pharmaceutical company specializing in the development, manufacture, and commercialization of a wide range of pharmaceutical products. The company operates primarily in the sectors of specialty pharmaceuticals and biotechnology, focusing on therapeutic areas such as oncology, pain management, and central nervous system disorders. ROVI is known for its innovative approach to drug delivery systems and has established a portfolio that includes both proprietary products and contract manufacturing services for third parties.

How the Company Makes Money

ROVI generates revenue through multiple streams, primarily from the sale of its proprietary pharmaceutical products and contract manufacturing services. The company's revenue model is anchored in the commercialization of its own branded medications, alongside a significant contribution from partnerships and collaborations with other pharmaceutical companies for the development and production of generic and specialty drugs. Additionally, ROVI benefits from strategic alliances that enhance its research and development capabilities, allowing it to expand its product offerings and enter new markets. The company also invests in biotechnology, which provides avenues for growth through innovative therapies and potentially lucrative licensing agreements.

Laboratorios Farmaceuticos Rovi Financial Statement Overview

Summary

Laboratorios Farmaceuticos Rovi exhibits strong financial performance with robust revenue growth, profitability, and cash management. The company's low leverage and high equity ratio provide financial stability, while strong margins and cash flows indicate effective operational management.

Income Statement

Laboratorios Farmaceuticos Rovi has shown strong revenue growth with a 31.28% increase in TTM (Trailing-Twelve-Months) revenue compared to the previous annual report. The gross profit margin is robust at 64.46%, and the net profit margin is impressive at 20.86%. Additionally, the company has displayed healthy EBIT and EBITDA margins of 27.26% and 21.21%, respectively. These metrics indicate solid operational efficiency and profitability in the biotechnology sector.

Balance Sheet

The company has a healthy equity ratio of 72.46%, showcasing a strong financial position with significant shareholder equity in relation to total assets. The debt-to-equity ratio of 0.18 indicates low leverage, reducing financial risk. However, the return on equity (ROE) is 35.47%, which reflects efficient use of equity. Overall, the balance sheet is strong, with minimal debt and solid equity backing.

Cash Flow

Laboratorios Farmaceuticos Rovi demonstrates robust cash flow management with an operating cash flow to net income ratio of 0.68, indicating good cash generation relative to profits. The free cash flow has grown by 5.28% in the latest period, and the free cash flow to net income ratio is 0.38, signifying efficient cash use. These metrics highlight the company's strong cash flow position, supporting its operational needs and potential growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	749.00M	763.75M	829.51M	817.70M	648.68M	419.96M
Gross Profit	641.36M	478.35M	483.34M	519.61M	384.82M	241.31M
EBITDA	203.59M	207.69M	245.81M	281.49M	204.72M	93.28M
Net Income	132.27M	136.88M	170.34M	199.67M	153.08M	61.06M
Balance Sheet
Total Assets	869.61M	832.02M	799.88M	878.70M	732.68M	574.44M
Cash, Cash Equivalents and Short-Term Investments	47.62M	27.41M	25.32M	124.94M	99.03M	53.16M
Total Debt	129.30M	114.41M	65.43M	72.14M	73.14M	73.52M
Total Liabilities	294.89M	250.48M	256.39M	357.32M	261.70M	200.74M
Stockholders Equity	563.63M	572.03M	539.39M	520.01M	470.98M	373.70M
Cash Flow
Free Cash Flow	72.17M	76.06M	58.06M	186.21M	108.50M	7.18M
Operating Cash Flow	136.55M	138.28M	113.25M	237.60M	149.44M	46.88M
Investing Cash Flow	-86.40M	-81.06M	-52.03M	-57.15M	-40.84M	-39.63M
Financing Cash Flow	-50.20M	-55.36M	-160.84M	-154.54M	-62.73M	-21.52M

Laboratorios Farmaceuticos Rovi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ROVI, the sentiment is Positive. The current price of 56.1 is above the 20-day moving average (MA) of 54.45, above the 50-day MA of 54.46, and below the 200-day MA of 56.21, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 93.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ROVI.

Laboratorios Farmaceuticos Rovi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROVI	71 Outperform	€2.84B	21.59	25.44%	1.67%	-3.73%	-7.56%
FAE	68 Neutral	€1.32B	12.49	14.89%	4.25%	11.04%	8.29%
RJF	64 Neutral	€243.38M	36.70	3.04%	1.65%	0.58%	-30.60%
PHM	62 Neutral	$1.50B	34.84	21.61%	0.97%	19.18%	―
ALM	53 Neutral	€2.41B	112.20	1.45%	1.42%	13.32%	―
Sector *	51 Neutral	$7.46B	-0.16	-46.00%	2.25%	22.76%	-2.28%

Laboratorios Farmaceuticos Rovi Corporate Events

Rovi Approves Key Resolutions and Re-elects CEO at Shareholders’ Meeting

Laboratorios Farmacéuticos Rovi held its Ordinary General Shareholders’ Meeting, approving key resolutions including the financial accounts for 2024, a dividend distribution, and the re-election of board members. The meeting also authorized the board to acquire own shares, issue bonds, and increase share capital, reflecting strategic moves to enhance corporate governance and financial flexibility. The re-election of Juan López-Belmonte Encina as CEO underscores continuity in leadership, potentially strengthening Rovi’s strategic direction and operational stability.

The most recent analyst rating on (ES:ROVI) stock is a Buy with a EUR104.00 price target. To see the full list of analyst forecasts on Laboratorios Farmaceuticos Rovi stock, see the ES:ROVI Stock Forecast page.