Laboratorios Farmaceuticos Rovi, SA (ES:ROVI)
BME:ROVI
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Laboratorios Farmaceuticos Rovi
(BME:ROVI)
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Rating:73Outperform
Price Target:
€88.00
▲(35.59% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong financial quality (profitability, low leverage, and ongoing cash generation). Offsetting this are only moderate valuation support and mixed near-term technical momentum. Management’s reaffirmed 2026 growth guidance and medium-term CDMO/specialty pharma catalysts are positives, but near-term execution risks (CDMO variability, heparin pressure, and higher R&D spend) keep the score in the mid-range.
Positive Factors
High margins & profitability
Sustained high gross and EBITDA margins reflect durable pricing power and efficient manufacturing mix. Strong margin profile supports cash generation, funds reinvestment and dividends, and cushions earnings against moderate revenue cyclicality, underpinning long‑term return on capital.
Negative Factors
CDMO revenue volatility
CDMO revenues are lumpy and tied to a few large contracts; the 20% decline shows how contract timing, client volume shifts and plant conversions can materially swing top line and utilization. This structural variability complicates short‑term forecasting and can pressure margins until new contracts scale.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained high gross and EBITDA margins reflect durable pricing power and efficient manufacturing mix. Strong margin profile supports cash generation, funds reinvestment and dividends, and cushions earnings against moderate revenue cyclicality, underpinning long‑term return on capital.
Read all positive factors
Laboratorios Farmaceuticos Rovi (ROVI) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€4.18B
Dividend Yield1.5%
Average Volume (3M)126.41K
Price to Earnings (P/E)23.1
Beta (1Y)0.66
Revenue Growth-9.39%
EPS Growth-25.92%
CountryES
Employees2,197
SectorGeneral
Sector StrengthN/A
IndustryBiotechnology
Share Statistics
EPS (TTM)0.83
Shares Outstanding51,235,764
10 Day Avg. Volume117,821
30 Day Avg. Volume126,405
Financial Highlights & Ratios
PEG Ratio7.72
Price to Book (P/B)4.89
Price to Sales (P/S)4.37
P/FCF Ratio27.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€86.75Price Target Upside33.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.04
Revenue Forecast (FY)€817.21M
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 fro...
How the Company Makes Money
ROVI generates revenue mainly through two complementary streams: (1) Sales of its own pharmaceutical products and (2) Contract manufacturing/services for other pharmaceutical companies. In its proprietary products business, ROVI earns money by sel...
Laboratorios Farmaceuticos Rovi Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive but cautious outlook. Profitability, margins, cash generation and specialty pharma (notably Okedi and enoxaparin) showed clear strength, ROVI secured strategic assets (Phoenix acquisition, Roche collaboration) and advanced key pipeline milestones (positive Phase I results and IND submission). Offsetting these positives were a 3% operating revenue decline in 2025 driven by a 20% drop in CDMO sales, near-term headwinds in the heparin business from inventory and pricing pressure, increased near-term R&D intensity, and timing uncertainty around Phoenix/BMS-related revenue. Management reiterated 2026 revenue guidance (high single-digit to low double-digit growth) and emphasized investments to capture future CDMO demand, supporting a positive medium‑term outlook despite short-term execution and market risks.Positive Updates
Strong Profitability and Margin Expansion
EBITDA increased 4% to EUR 216.2 million and EBITDA margin expanded by 1.9 percentage points to 29.1% in 2025. Gross profit rose 3% to EUR 494.7 million and gross margin improved 3.9 percentage points to 66.5% (64.8% ex other income). EBIT increased 4% to EUR 185.8 million (EBIT margin 25%), and net profit increased 3% to EUR 140.4 million.
Negative Updates
Top-Line Contraction in 2025
Total revenue for 2025 amounted to EUR 756.1 million, down 1% year-on-year; operating revenue was EUR 743.5 million, down 3% versus 2024. Management characterized 2025 as a transition year with mixed top-line dynamics.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability and Margin Expansion
EBITDA increased 4% to EUR 216.2 million and EBITDA margin expanded by 1.9 percentage points to 29.1% in 2025. Gross profit rose 3% to EUR 494.7 million and gross margin improved 3.9 percentage points to 66.5% (64.8% ex other income). EBIT increased 4% to EUR 185.8 million (EBIT margin 25%), and net profit increased 3% to EUR 140.4 million.
Read all positive updates
Company Guidance
ROVI reaffirmed 2026 guidance calling for a return to revenue growth, targeting a high single‑digit to low double‑digit increase in operating revenue versus 2025 (2025 operating revenue: EUR 743.5m; total revenue: EUR 756.1m). Management highlighted potential upside from CDMO contracts — including a 100m‑dose filling line that could contribute EUR 80–180m (commercial production likely H2 2026 with a first full year in 2027) and the pending ROIS Phoenix/BMS transaction — and maintained a constructive view on margins after 2025 gross margin of 66.5% (+3.9pp), EBITDA of EUR 216.2m (+4%) and an EBITDA margin of 29.1%. They expect 2026 to be R&D‑intensive (likely above the previously cited EUR 40–60m range and consistent with the unchanged 2026–2030 R&D plan), see CapEx around or modestly above 2025’s EUR 67.8m (consensus ~EUR 62m), and enter 2026 with net debt of EUR 21.9m (total debt EUR 121.8m); the board will propose a >EUR 49m dividend (EUR 0.9594/share, ~35% of 2025 net profit).Laboratorios Farmaceuticos Rovi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 743.48M | 763.75M | 829.51M | 817.70M | 648.68M |
| Gross Profit | 451.65M | 478.35M | 483.34M | 519.61M | 384.82M |
| EBITDA | 203.52M | 207.69M | 245.81M | 281.49M | 204.72M |
| Net Income | 140.44M | 136.88M | 170.34M | 199.67M | 153.08M |
Balance Sheet | |||||
| Total Assets | 955.69M | 832.02M | 799.88M | 878.70M | 732.68M |
| Cash, Cash Equivalents and Short-Term Investments | 97.98M | 27.41M | 25.32M | 124.94M | 99.03M |
| Total Debt | 146.09M | 114.41M | 65.43M | 72.14M | 73.14M |
| Total Liabilities | 276.79M | 250.48M | 256.39M | 357.32M | 261.70M |
| Stockholders Equity | 664.41M | 572.03M | 539.39M | 520.01M | 470.98M |
Cash Flow | |||||
| Free Cash Flow | 120.16M | 76.06M | 58.06M | 186.21M | 108.50M |
| Operating Cash Flow | 185.37M | 138.28M | 113.25M | 237.60M | 149.44M |
| Investing Cash Flow | -67.56M | -81.06M | -52.03M | -57.15M | -40.84M |
| Financing Cash Flow | -47.02M | -55.36M | -160.84M | -154.54M | -62.73M |
Laboratorios Farmaceuticos Rovi Technical Analysis
Positive
64.90
Price Trends
78.18
Positive
70.58
Positive
63.96
Positive
Market Momentum
0.76
Negative
64.09
Neutral
93.67
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 64.9 is below the 20-day moving average (MA) of 80.02, below the 50-day MA of 78.18, and above the 200-day MA of 63.96, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 64.09 is Neutral, neither overbought nor oversold. The STOCH value of 93.67 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €4.18B | 23.13 | 23.03% | 1.50% | -9.39% | -25.92% | |
71 Outperform | €1.62B | 17.19 | 35.36% | 1.04% | 7.35% | 5375.64% | |
59 Neutral | €2.65B | 35.12 | 3.96% | 1.22% | 13.32% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | €5.71B | 18.75 | 7.56% | 1.37% | 7.31% | 158.58% | |
51 Neutral | €1.46B | 20.17 | 18.13% | 3.51% | 11.04% | 8.29% | |
46 Neutral | €202.54M | 41.66 | 2.03% | 1.91% | -1.19% | -54.66% |
* General Sector Average
ES:ROVI
Laboratorios Farmaceuticos Rovi
82.65
36.29
78.28%
ES:ALM
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12.32
3.45
38.82%
ES:FAE
Faes Farma
4.70
1.10
30.42%
ES:GRF
Grifols
9.20
1.46
18.88%
ES:RJF
LABORATORIO REIG JOFRE
2.48
-0.06
-2.21%
ES:PHM
Pharma Mar SA
91.00
19.21
26.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.