Laboratorios Farmaceuticos Rovi (ROVI) AI Stock Analysis

• Market Cap: €2.83B
• Dividend Yield: 1.67%
• Average Volume (3M): 131.41K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.47
• Revenue Growth: -3.73%
• EPS Growth: -7.56%
• Country: ES
• Employees: 2,197
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.42
• Shares Outstanding: 51,235,764
• 10 Day Avg. Volume: 130,515
• 30 Day Avg. Volume: 131,414
• PEG Ratio: -1.25
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 42.43
• 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: €80.85
• Price Target Upside: 44.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: €61.00 ▲(8.83% Upside)

Laboratorios Farmaceuticos Rovi's overall stock score reflects strong financial stability and profitability, bolstered by growth in the Specialty Pharma segment. However, challenges such as declining revenue and profitability, along with mixed technical indicators, temper the outlook. The company's strategic focus on innovation and long-term growth is promising, but immediate financial hurdles need addressing.

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 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 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

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

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

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: Negative
• Last Price: 56.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 56.05 is below the 20-day moving average (MA) of 58.95, below the 50-day MA of 56.88, and above the 200-day MA of 55.30, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 4.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	73 Outperform	1.31B	12.38	15.34%	4.27%	11.04%	8.29%
ROVI	65 Neutral	€2.83B	21.57	25.44%	1.67%	-3.73%	-7.56%
PHM	64 Neutral	1.54B	36.20	20.84%	0.92%	19.18%	―
RJF	64 Neutral	228.68M	34.48	4.85%	1.75%	0.58%	-30.60%
ALM	53 Neutral	2.41B	112.20	1.46%	1.40%	13.32%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.