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Laboratorios Farmaceuticos Rovi, SA (ES:ROVI)
BME:ROVI
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Laboratorios Farmaceuticos Rovi (ROVI) AI Stock Analysis

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ES:ROVI

Laboratorios Farmaceuticos Rovi

(BME:ROVI)

Rating:74Outperform
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 (ROVI) vs. iShares MSCI Spain ETF (EWP)

Laboratorios Farmaceuticos Rovi Business Overview & Revenue Model

Company DescriptionLaboratorios 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 MoneyROVI 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q4-2024)
|
% Change Since: 5.06%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for Rovi with significant declines in operating revenue, CDMO sales, EBITDA, and net profit, primarily due to decreased COVID-19 vaccine manufacturing revenues. However, there are positive aspects such as growth in the specialty pharma business, particularly with Okedi and Bemiparin, and improvements in ESG ratings. The company is investing in future growth, particularly in the CDMO segment, but faces short-term operational and financial challenges.
Q4-2024 Updates
Positive Updates
Specialty Pharma Business Growth
Sales of the specialty pharmaceutical business increased by 2% in 2024, reaching €427.5 million, driven by products like Okedi, Neparvis, and contrast imaging agents.
Okedi Risperidone ISM Performance
Sales of Okedi doubled in 2024, reaching €28.8 million, and it was launched in new markets including Finland, the rest of the Nordic countries, Australia, Taiwan, and the Netherlands.
Bemiparin Sales Increase
Bemiparin international sales grew by 16% with strong contributions from China, Turkey, and Greece, despite an overall slow down in the Heparin franchise.
ESG Improvements
Rovi improved its ESG risk rating to 16.1 from 16.4 in the previous year and was ranked fifth in the world ESG risk ranking among 424 pharmaceutical companies.
Future CDMO Growth Prospects
A new agreement for pre-filled syringes with a global pharmaceutical company is expected to increase CDMO revenue by 20% to 45% over 2023 sales starting in 2027.
Negative Updates
Operating Revenue Decline
Total operating revenues fell by 7.9% to €763.7 million due to decreased revenues from COVID-19 vaccine manufacturing.
CDMO Sales Decline
CDMO sales decreased to €336.2 million due to lower revenues from the COVID-19 vaccine manufacturing compared to 2023.
Heparin Franchise Sales Decline
Sales of the Heparin franchise decreased by 2% in 2024, with Enoxaparin biosimilar sales dropping by 6%.
EBITDA and Net Profit Decrease
EBITDA decreased by 15% to €207.4 million, and net profit dropped by 20% to €136.9 million in 2024 compared to 2023.
Increased SG&A Expenses
Selling, general, and administrative expenses increased by 12% due to higher employee benefit expenses and non-recurrent expenses.
Company Guidance
In the call, Rovi provided guidance for 2025, expecting operating revenue to decrease by a mid-single-digit percentage compared to 2024. The company highlighted a 7.9% decline in operating revenue to €763.7 million in 2024, primarily due to reduced CDMO sales of €336.2 million, which were impacted by lower revenues from COVID-19 vaccine manufacturing. Despite this, the specialty pharmaceutical business saw a 2% increase in sales to €427.5 million, driven by products like Okedi, which doubled its sales to €28.8 million. Rovi's gross margin improved by 370 basis points to 62.7%, although EBITDA decreased by 15% to €207.4 million, and net profit dropped 20% to €136.9 million. The company also reported a significant reduction in raw material prices for low-molecular-weight heparins, which fell by 54%. Rovi's CapEx in 2024 was €62.2 million, with investments in expanding CDMO capacities and other strategic projects. The company remains optimistic about future growth driven by its specialty pharma area, CDMO business, and ongoing investments in R&D and infrastructure.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue763.75M829.51M817.70M648.68M419.96M
Gross Profit478.35M483.34M519.61M384.82M241.31M
EBITDA207.69M245.81M281.49M204.72M93.28M
Net Income136.88M170.34M199.67M153.08M61.06M
Balance Sheet
Total Assets832.02M799.88M878.70M732.68M574.44M
Cash, Cash Equivalents and Short-Term Investments27.41M25.32M124.94M99.03M53.16M
Total Debt114.41M65.43M72.14M73.14M73.52M
Total Liabilities250.48M256.39M357.32M261.70M200.74M
Stockholders Equity572.03M539.39M520.01M470.98M373.70M
Cash Flow
Free Cash Flow76.06M58.06M186.21M108.50M7.18M
Operating Cash Flow138.28M113.25M237.60M149.44M46.88M
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 Price57.15
Price Trends
50DMA
53.83
Positive
100DMA
52.28
Positive
200DMA
57.85
Negative
Market Momentum
MACD
0.16
Negative
RSI
66.87
Neutral
STOCH
51.82
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€2.75B19.9625.44%1.64%-3.73%-7.56%
65
Neutral
¥355.44B11.10-2.99%2.49%11.76%-10.16%
€2.26B220.420.69%1.49%
€1.44B12.8516.04%3.86%
€7.36B30.063.37%
€242.56M22.195.11%1.61%
$1.72B78.4510.15%<0.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ROVI
Laboratorios Farmaceuticos Rovi
57.15
-29.70
-34.20%
GB:0O9B
Almirall
10.82
1.39
14.74%
GB:0K9H
Faes Farma
4.65
1.23
35.96%
GB:0RDV
Grifols
8.63
1.52
21.38%
GB:0RB1
LABORATORIO REIG JOFRE
3.00
0.22
7.91%
PHMMF
Pharma Mar SA
98.56
54.72
124.82%

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.

ROVI Secures €36.3 Million for Innovative Drug Development Project
May 8, 2025

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
May 8, 2025

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.

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: Jul 24, 2025