Laboratorios Farmaceuticos Rovi (ROVI) AI Stock Analysis

• Market Cap: €2.75B
• Dividend Yield: 1.64%
• Average Volume (3M): 120.65K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.43
• Revenue Growth: -3.73%
• EPS Growth: -7.56%
• Country: ES
• Employees: 2,197
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): 0.42
• Shares Outstanding: 51,235,764
• 10 Day Avg. Volume: 121,799
• 30 Day Avg. Volume: 120,650
• PEG Ratio: 9.29
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.86
• 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: €90.00
• Price Target Upside: 57.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: €61.00 ▲(6.74%Upside)

Laboratorios Farmaceuticos Rovi's strong financial performance is the most significant factor driving the overall score, supported by robust revenue growth, profitability, and cash management. The stock's technical analysis and valuation also contribute, although they present a more moderate outlook. The absence of earnings call insights and corporate events does not influence the score.

Laboratorios Farmaceuticos Rovi Business Overview & Revenue Model

Company Description

Laboratorios Farmaceuticos Rovi, S.A. engages in the research, development, production, and sale of pharmaceutical products in Spain, European Union, OECD countries, and internationally. The company distributes other products that are licensed from other laboratories. Its principal products include Hibor, a low-molecular-weight heparin to prevent and treat venous thromboembolic disease; Enoxaparin biosimilar Becat, a low-molecular-weight heparin; Neparvis to treat symptomatic chronic heart failure with reduced ejection in adult patients; Absorcol, Vytorin, and Orvatez to diet in patients with hypercholesterolemia; Hirobriz Breezhaler and Ulunar Breezhaler that are long-acting bronchodilators for the maintenance treatment of chronic obstructive pulmonary diseases; Volutsa for treatment of moderate to severe storage systems symptoms and voiding symptoms associated with benign prostatic hyperplasia in men who are not responding adequately to monotherapy treatment; and Medikinet and Medicebrán to treat attention deficit hyperactivity disorder in children and teenagers. The company also markets various hospital products for imaging diagnosis, such as Iomeron and Iopamiro for computed tomography and intervention; Multihance and Prohance for magnetic resonance imaging; Sonovue for ultrasounds; and EmpowerCTA+, EmpowerMR, and CT Exprès that are contrast injection systems and compatible disposable material. It provides non-prescription pharmaceutical products; and contract-manufacturing services to other companies for a range of pharmaceutical forms, including prefilled syringes, vials, suppositories, tablets, hard capsules, and sachets. The company serves wholesalers, doctors, nursing staff, pharmacists, and patients. It has a collaboration with Moderna, Inc. for manufacturing mRNA COVID-19 vaccine candidate. The company was incorporated in 1946 and is headquartered in Madrid, Spain. Laboratorios Farmaceúticos Rovi, S.A. is a subsidiary of Norbel Inversiones, S.L.

How the Company Makes Money

ROVI generates revenue through several key streams, primarily driven by the sales of its proprietary pharmaceutical products and contract manufacturing services. The company's proprietary product line includes a range of therapeutic areas, such as cardiovascular, metabolic, and central nervous system disorders, which are sold directly to healthcare providers and distributors. Additionally, ROVI benefits from in-licensing agreements, through which it acquires rights to market and sell third-party drugs in specific markets. Another significant revenue source is its contract manufacturing segment, where ROVI provides production and packaging services to other pharmaceutical companies. Partnerships with major global pharmaceutical firms, such as its collaboration with Moderna for the production of COVID-19 vaccines, also contribute substantially to ROVI's earnings.

Laboratorios Farmaceuticos Rovi Financial Statement Overview

Summary

Laboratorios Farmaceuticos Rovi demonstrates strong financial performance with robust revenue growth, high profitability margins, and efficient cash flow management. The low leverage and high equity ratio further strengthen its financial stability.

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

Laboratorios Farmaceuticos Rovi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 57.15 is above the 20-day moving average (MA) of 54.39, above the 50-day MA of 53.83, and below the 200-day MA of 57.85, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 51.82 is Neutral, 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	74 Outperform	€2.75B	19.96	25.44%	1.64%	-3.73%	-7.56%
Sector *	65 Neutral	¥355.44B	11.10	-2.99%	2.49%	11.76%	-10.16%
0O9B	―	€2.26B	220.42	0.69%	1.49%	―	―
0K9H	―	€1.44B	12.85	16.04%	3.86%	―	―
0RDV	―	€7.36B	30.06	3.37%	―	―	―
0RB1	―	€242.56M	22.19	5.11%	1.61%	―	―
PHMMF	―	$1.72B	78.45	10.15%	<0.01%	―	―

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.

ROVI Secures €36.3 Million for Innovative Drug Development Project

Laboratorios Farmacéuticos ROVI, S.A. has been granted a subsidy of 36.3 million euros from the Center for Technological Development and Innovation (CDTI) for its R&D project, LAISOLID, under the IPCEI Med4Cure initiative. This funding will support the development of new aseptic filling technologies and methodologies to accelerate drug development, with potential applications in tissue regeneration and long-acting injectable formulations, enhancing ROVI’s position in cutting-edge health solutions.

ROVI Announces Upcoming Shareholders’ Meeting and Dividend Proposal

Laboratorios Farmacéuticos ROVI has announced the call for its Ordinary General Shareholders’ Meeting scheduled for June 18, 2025. The meeting will address several key issues, including the proposal to distribute a dividend of 0.9351 euros per share for the 2024 financial year. This announcement reflects ROVI’s commitment to maintaining transparency and engaging with its shareholders, potentially impacting its financial outlook and investor relations.