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Laboratorios Farmaceuticos Rovi, SA (ES:ROVI)
BME:ROVI
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Laboratorios Farmaceuticos Rovi
(BME:ROVI)
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Rating:74Outperform
Price Target:
€69.00
▲(11.11% Upside)
Laboratorios Farmaceuticos Rovi's overall stock score is driven by strong financial performance and positive technical indicators. The company's profitability and efficient operations are significant strengths, while the stock's valuation is moderate. The absence of earnings call and corporate events data did not impact the score.
Positive Factors
Cash Flow Generation
Strong cash flow generation indicates effective operational management and provides the company with financial flexibility for reinvestment and growth.
Profitability
High profitability margins suggest efficient cost management and competitive pricing power, supporting long-term financial health and shareholder value.
Balance Sheet Health
A low debt-to-equity ratio reflects prudent financial management, reducing risk and enhancing the company's ability to invest in growth opportunities.
Negative Factors
Revenue Decline
Declining revenue may signal market share loss or reduced demand, potentially impacting future profitability and growth prospects.
Earnings Decline
A significant decline in earnings per share suggests potential operational challenges or increased costs, which could affect investor confidence and long-term valuation.
Revenue Growth Challenges
Negative revenue growth indicates difficulty in expanding market reach or product adoption, potentially limiting future business expansion and competitiveness.
Laboratorios Farmaceuticos Rovi (ROVI) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€3.14B
Dividend Yield1.51%
Average Volume (3M)126.41K
Price to Earnings (P/E)26.2
Beta (1Y)0.57
Revenue Growth-9.39%
EPS Growth-25.92%
CountryES
Employees2,197
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)1.13
Shares Outstanding51,235,764
10 Day Avg. Volume117,821
30 Day Avg. Volume126,405
Financial Highlights & Ratios
PEG Ratio-1.25
Price to Book (P/B)5.64
Price to Sales (P/S)4.23
P/FCF Ratio42.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€90.00Price Target Upside44.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, including the sale of proprietary pharmaceutical products, generic medications, and active pharmaceutical ingredients. The company operates on a revenue model that includes direct sales to healthcare providers, wholesalers, and distributors, as well as partnerships with other pharmaceutical companies for product development and distribution. Significant revenue comes from its proprietary products, such as biosimilars and specialty pharmaceuticals, which often command higher prices due to their innovative nature. Additionally, ROVI engages in contract manufacturing for other pharmaceutical firms, providing another source of income through the production of APIs and finished drug products. Collaborations and licensing agreements with global biopharmaceutical firms further enhance its revenue potential, as these partnerships often involve milestone payments and royalties on sales.
Laboratorios Farmaceuticos Rovi Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
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
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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 724.20M | 763.75M | 829.51M | 817.70M | 648.68M | 419.96M |
| Gross Profit | 625.86M | 478.35M | 483.34M | 519.61M | 384.82M | 241.31M |
| EBITDA | 189.61M | 207.69M | 245.81M | 281.49M | 204.72M | 93.28M |
| Net Income | 121.15M | 136.88M | 170.34M | 199.67M | 153.08M | 61.06M |
Balance Sheet | ||||||
| Total Assets | 922.07M | 832.02M | 799.88M | 878.70M | 732.68M | 574.44M |
| Cash, Cash Equivalents and Short-Term Investments | 49.25M | 27.41M | 25.32M | 124.94M | 99.03M | 53.16M |
| Total Debt | 123.62M | 114.41M | 65.43M | 72.14M | 73.14M | 73.52M |
| Total Liabilities | 289.27M | 250.48M | 256.39M | 357.32M | 261.70M | 200.74M |
| Stockholders Equity | 621.74M | 572.03M | 539.39M | 520.01M | 470.98M | 373.70M |
Cash Flow | ||||||
| Free Cash Flow | 107.67M | 76.06M | 58.06M | 186.21M | 108.50M | 7.18M |
| Operating Cash Flow | 174.52M | 138.28M | 113.25M | 237.60M | 149.44M | 46.88M |
| Investing Cash Flow | -88.78M | -81.06M | -52.03M | -57.15M | -40.84M | -39.63M |
| Financing Cash Flow | -55.63M | -55.36M | -160.84M | -154.54M | -62.73M | -21.52M |
Laboratorios Farmaceuticos Rovi Technical Analysis
Positive
62.10
Price Trends
60.09
Positive
58.90
Positive
55.66
Positive
Market Momentum
0.70
Negative
60.16
Neutral
52.97
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 62.1 is above the 20-day moving average (MA) of 60.34, above the 50-day MA of 60.09, and above the 200-day MA of 55.66, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €1.55B | 14.69 | 14.89% | 3.60% | 11.04% | 8.29% | |
74 Outperform | €3.14B | 26.22 | 20.70% | 1.51% | -9.39% | -25.92% | |
65 Neutral | €217.25M | 48.81 | 2.03% | 1.84% | -1.19% | -54.66% | |
60 Neutral | €2.78B | 129.60 | 1.45% | 1.22% | 13.32% | ― | |
57 Neutral | €1.36B | 39.50 | 17.22% | 1.05% | 7.35% | 5375.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ES:ROVI
Laboratorios Farmaceuticos Rovi
62.10
1.19
1.95%
ES:ALM
Almirall
12.96
4.91
61.03%
ES:FAE
Faes Farma
4.97
1.66
50.02%
ES:GRF.P
Grifols
7.78
0.77
10.98%
ES:RJF
LABORATORIO REIG JOFRE
2.66
0.12
4.89%
ES:PHM
Pharma Mar SA
76.35
-2.52
-3.19%
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.