Laboratorios Farmaceuticos Rovi, SA (ES:ROVI)
BME:ROVI
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Laboratorios Farmaceuticos Rovi
(BME:ROVI)
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Rating:60Neutral
Price Target:
€66.00
▲(1.69% Upside)
Action:Reiterated
Date:05/11/26
The score is supported primarily by strong underlying profitability and a low-leverage balance sheet, but is held back by sharp recent top-line deterioration and weaker cash-flow momentum. Technicals are very bearish (deeply oversold and below major moving averages), and valuation looks expensive (very high P/E), while the latest call was mixed with moderated guidance offset by margin improvement and product/CDMO catalysts.
Positive Factors
Balance-sheet strength
Low leverage and a conservative balance sheet materially increase financial flexibility over the medium term. With modest net debt and meaningful equity, ROVI can fund CDMO capacity adds, pipeline R&D and dividend policy without forcing asset sales or dilutive financing, supporting stability through revenue cycles.
Negative Factors
Sharp revenue deterioration
A large decline in trailing revenues weakens operating leverage and reduces internal funding for R&D and capacity projects. Sustained top-line contraction can pressure margins, delay investment paybacks and make long-term targets (e.g., CDMO scale) harder to achieve without material market-share recovery or new contract wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Low leverage and a conservative balance sheet materially increase financial flexibility over the medium term. With modest net debt and meaningful equity, ROVI can fund CDMO capacity adds, pipeline R&D and dividend policy without forcing asset sales or dilutive financing, supporting stability through revenue cycles.
Read all positive factors
Laboratorios Farmaceuticos Rovi (ROVI) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€3.03B
Dividend Yield1.5%
Average Volume (3M)126.41K
Price to Earnings (P/E)108.9
Beta (1Y)0.66
Revenue Growth-3.44%
EPS Growth-5.45%
CountryES
Employees2,197
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.57
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
€73.60Price Target Upside13.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.66
Revenue Forecast (FY)€773.87M
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful margin and profitability improvements, strong product-level growth (notably Okedi), CDMO momentum and important R&D/clinical milestones provide positive long-term catalysts. Offsetting this were soft top-line dynamics, a material decline and pricing pressure in the heparin business, higher operating and R&D costs, and near-term uncertainty around a key prefilled syringe contract that prompted a more moderate 2026 revenue outlook. Overall, the company appears to be navigating near-term headwinds while investing for medium- to long-term growth.Positive Updates
Improved profitability and margins
Gross profit increased 5% to EUR 95.0m in Q1 2026, with gross margin improving by 3.8 percentage points to 62.3%. Excluding other income, gross margin rose 2.5 percentage points to 60.8%, driven by higher contribution from Okedi, lower heparin raw material costs and higher-margin CDMO revenue.
Negative Updates
Revenue softness and downgraded near-term guidance
Operating revenues declined 1.5% year-on-year to EUR 152.5m and total revenues were broadly flat at EUR 154.7m. Management revised 2026 guidance to expect operating revenue growth of only a low- to mid-single-digit percentage vs. 2025 (a moderation from prior outlook).
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Q1-2026 Updates
Positive
Negative
Improved profitability and margins
Gross profit increased 5% to EUR 95.0m in Q1 2026, with gross margin improving by 3.8 percentage points to 62.3%. Excluding other income, gross margin rose 2.5 percentage points to 60.8%, driven by higher contribution from Okedi, lower heparin raw material costs and higher-margin CDMO revenue.
Read all positive updates
Company Guidance
ROVI updated its 2026 guidance to now expect operating revenue to increase by a low- to mid-single-digit percentage versus 2025; in Q1 the company reported operating revenues of EUR 152.5m (down 1.5% YoY), total revenues EUR 154.7m (broadly flat), gross profit up 5% to EUR 95.0m with gross margin improving 3.8 pp to 62.3% (60.8% excl. other income, +2.5 pp), EBITDA EUR 20.3m (13.3% margin), EBIT EUR 12.1m (8% margin) and net profit EUR 9.4m. Key segment and cash metrics: heparin (≈40% of operating revenues) declined 12% (LMWH sales expected to fall high single‑digits in 2026; enoxaparin biosimilar +2%), Specialty Pharma -3%, CDMO revenue EUR 37.4m (+5%) though guidance was revised down for the prefilled‑syringe agreement due to a delayed start (the contract is take‑or‑pay), Okedi sales EUR 17.2m (+37% YoY, +10% vs Q4'25; potential EUR 100–200m longer term), SG&A EUR 63.6m (+18%; expected mid‑ to high‑single‑digit growth ex‑Phoenix), R&D EUR 11.2m (+79%; FY guidance ~EUR 60m), CapEx EUR 7.7m, operating cash flow EUR 13.0m, free cash flow EUR 5.6m, gross debt EUR 114.4m, cash EUR 99.6m (net debt EUR 14.9m), a proposed dividend of EUR 0.9594/share (targeting a 35% payout), and management reaffirmed its long‑term CDMO ambition (≈EUR 700m by 2030) while emphasizing Phoenix integration (effective Apr 1) and continued cost‑efficiency and vertical‑integration measures.Laboratorios Farmaceuticos Rovi Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 741.09M | 743.48M | 763.75M | 829.51M | 817.70M | 648.68M |
| Gross Profit | 468.58M | 451.65M | 478.35M | 483.34M | 519.61M | 384.82M |
| EBITDA | 200.00M | 203.52M | 207.69M | 245.81M | 281.49M | 204.72M |
| Net Income | 131.82M | 140.44M | 136.88M | 170.34M | 199.67M | 153.08M |
Balance Sheet | ||||||
| Total Assets | 926.32M | 955.69M | 832.02M | 799.88M | 878.70M | 732.68M |
| Cash, Cash Equivalents and Short-Term Investments | 97.39M | 97.98M | 27.41M | 25.32M | 124.94M | 99.03M |
| Total Debt | 114.44M | 146.09M | 114.41M | 65.43M | 72.14M | 73.14M |
| Total Liabilities | 239.58M | 276.79M | 250.48M | 256.39M | 357.32M | 261.70M |
| Stockholders Equity | 673.91M | 664.41M | 572.03M | 539.39M | 520.01M | 470.98M |
Cash Flow | ||||||
| Free Cash Flow | 114.82M | 120.16M | 76.06M | 58.06M | 186.21M | 108.50M |
| Operating Cash Flow | 180.56M | 185.37M | 138.28M | 113.25M | 237.60M | 149.44M |
| Investing Cash Flow | -63.43M | -67.56M | -81.06M | -52.03M | -57.15M | -40.84M |
| Financing Cash Flow | -46.71M | -47.02M | -55.36M | -160.84M | -154.54M | -62.73M |
Laboratorios Farmaceuticos Rovi Technical Analysis
Negative
64.90
Price Trends
77.27
Negative
75.25
Negative
67.12
Negative
Market Momentum
-6.24
Positive
12.57
Positive
3.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ROVI, the sentiment is Negative. The current price of 64.9 is below the 20-day moving average (MA) of 71.29, below the 50-day MA of 77.27, and below the 200-day MA of 67.12, indicating a bearish trend. The MACD of -6.24 indicates Positive momentum. The RSI at 12.57 is Positive, neither overbought nor oversold. The STOCH value of 3.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €1.76B | 245.30 | 35.74% | 1.04% | 28.27% | 307.67% | |
60 Neutral | €3.03B | 108.93 | 20.89% | 1.50% | -3.44% | -5.45% | |
60 Neutral | €2.44B | 42.68 | 3.53% | 1.22% | 12.41% | 342.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | €5.85B | 20.88 | 7.88% | 1.37% | 0.89% | 112.68% | |
51 Neutral | €1.44B | 14.71 | 18.13% | 3.51% | 23.66% | -28.51% | |
46 Neutral | €223.78M | 16.80 | 2.03% | 1.91% | -2.30% | -52.51% |
* General Sector Average
ES:ROVI
Laboratorios Farmaceuticos Rovi
59.95
7.87
15.11%
ES:ALM
Almirall
11.38
1.06
10.24%
ES:FAE
Faes Farma
4.61
0.49
11.78%
ES:GRF
Grifols
9.56
0.13
1.36%
ES:RJF
LABORATORIO REIG JOFRE
2.74
-0.33
-10.75%
ES:PHM
Pharma Mar SA
98.90
11.07
12.61%
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.