Laboratorios Farmaceuticos Rovi (ROVI) AI Stock Analysis

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Laboratorios Farmaceuticos Rovi

(BME:ROVI)

Rating:71Outperform

Price Target:

€60.00

▲(0.59% 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 (ROVI) vs. iShares MSCI Spain ETF (EWP)

Market Cap

€3.02B

Dividend Yield1.57%

Average Volume (3M)115.12K

Price to Earnings (P/E)23.0

Beta (1Y)0.50

Revenue Growth-3.73%

EPS Growth-7.56%

CountryES

Employees2,197

SectorHealthcare

Sector Strength52

IndustryBiotechnology

Share Statistics

EPS (TTM)0.42

Shares Outstanding51,235,764

10 Day Avg. Volume151,970

30 Day Avg. Volume115,120

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€80.85

Price Target Upside35.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Laboratorios Farmaceuticos Rovi Business Overview & Revenue Model

Company DescriptionLaboratorios 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 MoneyROVI 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflected both positive and negative trends. The Specialty Pharma business showed strong growth, particularly in products like Okedi and heparin, and the company is expanding its technological capabilities. However, overall revenue decreased due to significant declines in the CDMO segment, and profitability metrics like EBITDA and net profit also fell. The company's strategic focus on long-term growth and innovation is evident, but immediate financial challenges persist.

Q2-2025 Updates

Positive Updates

Specialty Pharma Business Growth

Sales of the Specialty Pharma business increased by 13% to EUR 237.4 million in the first half of 2025, driven by products like Okedi, Neparvis, and heparin divisions.

Okedi Sales Surge

Okedi sales increased by 115% to EUR 26.9 million in the first half of 2025 compared to the same period in 2024, showing a robust growth trajectory.

Heparin Division Performance

The heparin division saw a 12% sales increase to EUR 135.2 million, with enoxaparin sales rising 14% due to stronger international sales.

Gross Margin Improvement

Gross margin increased by 3 percentage points to 62.4% in the first half of 2025, driven by product mix and reduced raw material costs.

Technological Development and Innovation Center Aid

Award of aid of EUR 36.3 million for ROVI's LAISOLID project, covering development costs from January 2023 to August 2026.

Expansion in AI and Pathological Anatomy

Acquired a majority position in Cells IA Technologies, enhancing ROVI's capabilities in AI-assisted diagnosis for pathological anatomy.

Negative Updates

Overall Revenue Decline

Total operating revenue decreased by 4% to EUR 314.6 million in the first half of 2025, mainly due to the underperformance of the CDMO business.

CDMO Sales Drop

CDMO sales fell 35% to EUR 77.2 million in the first half of 2025 compared to the same period in 2024, impacted by lower revenues from existing customers and the Moderna agreement.

EBITDA and Net Profit Decrease

EBITDA decreased by 6% to EUR 65.6 million and net profit decreased by 10% to EUR 39.7 million in the first half of 2025 compared to the first half of 2024.

Increased R&D Expenses

R&D expenses increased by 38% to EUR 16.8 million in the first half of 2025, impacting EBITDA and net profit.

Company Guidance

During the call detailing ROVI's first half of 2025 financial results, the company reiterated its guidance that operating revenue would decrease by a mid-single-digit percentage compared to 2024. While total operating revenue fell 4% to EUR 314.6 million, impacted by a 35% decline in CDMO sales, the Specialty Pharma business saw a 13% increase to EUR 237.4 million. Notably, Okedi sales surged by 115% to EUR 26.9 million, and the Heparin division, led by enoxaparin, grew 12% to EUR 135.2 million. Gross margin improved by 3 percentage points to 62.4%, despite a 6% EBITDA decline due to higher R&D expenses. The company continues to invest heavily in R&D, with expenses up 38% to EUR 16.8 million, as it advances its ISM technology platform. Despite the challenges, ROVI remains optimistic about its growth trajectory, particularly in its Specialty Pharma and CDMO segments, supported by strategic investments and a strong European footprint.

Laboratorios Farmaceuticos Rovi Financial Statement Overview

Summary

Laboratorios Farmaceuticos Rovi demonstrates strong profitability and financial stability with efficient operations and a solid balance sheet. However, the decline in revenue growth and free cash flow in the TTM could pose challenges if not addressed.

Income Statement

Positive

Laboratorios Farmaceuticos Rovi shows strong gross and net profit margins in the TTM, indicating efficient cost management and profitability. However, the revenue growth rate is negative, suggesting a decline in sales compared to previous periods. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

Positive

The company has a solid balance sheet with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The return on equity is robust, showcasing effective use of shareholder funds to generate profits. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Positive

Operating cash flow remains strong relative to net income, indicating good cash generation from operations. However, the free cash flow growth rate is negative in the TTM, which could be a concern if it persists. The free cash flow to net income ratio is moderate, suggesting a reasonable conversion of profits into free cash flow.

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 Price59.65

Price Trends

50DMA

55.53

Positive

100DMA

54.02

Positive

200DMA

55.57

Positive

Market Momentum

MACD

1.16

Negative

RSI

65.82

Neutral

STOCH

53.01

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 59.65 is above the 20-day moving average (MA) of 57.36, above the 50-day MA of 55.53, and above the 200-day MA of 55.57, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 65.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROVI	71 Outperform	€3.02B	22.96	25.44%	1.57%	-3.73%	-7.56%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%
0O9B	―	€2.35B	109.40	1.45%	―	―	―
0K9H	―	€1.34B	12.74	14.89%	―	―	―
0RDV	―	€7.41B	19.78	5.53%	―	―	―
0RB1	―	€228.68M	35.16	3.04%	―	―	―
PHMMF	―	$1.86B	38.91	21.61%	0.90%	―	―

* Healthcare Sector Average

Performance Comparison

ES:ROVI

Laboratorios Farmaceuticos Rovi

59.65

-21.48

-26.48%

GB:0O9B

Almirall

10.94

2.43

28.55%

GB:0K9H

Faes Farma

4.31

0.74

20.73%

GB:0RDV

Grifols

8.66

1.03

13.50%

GB:0RB1

LABORATORIO REIG JOFRE

2.86

0.17

6.32%

PHMMF

Pharma Mar SA

103.08

58.84

133.00%

Laboratorios Farmaceuticos Rovi Corporate Events

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

Jun 18, 2025

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.

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.Date of analysis: Aug 13, 2025