Roche Holding (RHHBY)
OTHER OTC:RHHBY
Top Page
Roche Holding
(OTC:RHHBY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$56.00
▲(11.31% Upside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong underlying financial quality (high profitability and solid cash generation despite growth volatility and leverage). Technicals add support with a clear uptrend and positive momentum. Valuation is the main limiter (higher P/E and modest yield), while the latest earnings call was net positive on guidance and pipeline progress but flagged meaningful LOE, China Diagnostics, cash conversion, tax, and regulatory risks.
Positive Factors
Profitability & Cash Generation
Roche’s high gross (≈69%–74%) and EBIT margins (≈21%–32%) and consistently positive free cash flow (FCF covering a large portion of net income) create durable internal funding for R&D, manufacturing and dividends, supporting long‑term reinvestment and capital allocation even through revenue volatility.
Negative Factors
Elevated Financial Leverage
Meaningful leverage limits financial flexibility to absorb clinical setbacks, larger M&A or significant buybacks, and raises sensitivity to interest and cash‑flow shocks; with choppy revenue, elevated debt increases execution risk for multi‑year R&D and commercial investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Cash Generation
Roche’s high gross (≈69%–74%) and EBIT margins (≈21%–32%) and consistently positive free cash flow (FCF covering a large portion of net income) create durable internal funding for R&D, manufacturing and dividends, supporting long‑term reinvestment and capital allocation even through revenue volatility.
Read all positive factors
Roche Holding (RHHBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$320.22B
Dividend Yield1.63%
Average Volume (3M)2.42M
Price to Earnings (P/E)12.1
Beta (1Y)0.39
Revenue Growth7.26%
EPS Growth-8.64%
CountryUS
Employees103,249
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)1.36
Shares Outstanding5,620,501,500
10 Day Avg. Volume1,454,840
30 Day Avg. Volume2,417,019
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)7.76
Price to Sales (P/S)4.15
P/FCF Ratio19.53
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue6.01
Enterprise Value/Gross Profit8.23
Enterprise Value/Ebitda12.81
Forecast
1Y Price Target
$54.60Price Target Upside8.53% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.21
Revenue Forecast (FY)$79.79B
Roche Holding Business Overview & Revenue Model
Company Description
Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company offers pharmaceutical products for t...
How the Company Makes Money
Roche makes money mainly by selling pharmaceutical products and diagnostic solutions worldwide. (1) Pharmaceuticals (Pharma division): Revenue is generated primarily from sales of branded prescription medicines to wholesalers, hospitals, pharmacie...
Roche Holding Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call struck a broadly positive tone: Roche reported solid FY2025 financial results (7% sales growth, +13% core operating profit) and delivered exceptional pipeline momentum with multiple Phase III and regulatory successes (including record progression of NMEs to Phase III and major readouts for fenebrutinib and giredestrant). Management reiterated disciplined capital allocation, upgraded guidance execution and substantial near-term commercial opportunities (AXELIOS sequencing, diagnostics menu expansion, several on-market growth drivers). Key headwinds include significant Diagnostics disruption from China pricing reforms (CHF ~579m impact), weaker operating cash flow driven by working capital build, an increased tax burden affecting EPS momentum, currency and tariff pressures, and regulatory/safety uncertainty in the BTK space. On balance, the quantity and quality of positive clinical readouts, approvals and commercial traction materially outweigh the operational and macro headwinds reported.Positive Updates
Group Revenue and Profit Growth
Group sales grew 7% (FY2025). Pharma sales up 9% and Diagnostics up 2% (would be +7% ex-China). Core operating profit increased 13% with a core operating margin expansion of +1.9 percentage points; core EPS rose ~11%.
Negative Updates
China Diagnostics Pricing Reforms Impact
Diagnostics sales in China declined ~24%, producing a headline Diagnostics sales drag of CHF ~579 million; Diagnostics grew only 2% for the year but would have been +7% excluding China headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Revenue and Profit Growth
Group sales grew 7% (FY2025). Pharma sales up 9% and Diagnostics up 2% (would be +7% ex-China). Core operating profit increased 13% with a core operating margin expansion of +1.9 percentage points; core EPS rose ~11%.
Read all positive updates
Company Guidance
Roche guided 2026 to mid‑single‑digit group sales growth and high‑single‑digit core EPS growth, signaled a further Swiss‑franc dividend increase, and expects Diagnostics to grow mid‑single‑digits this year as China headwinds subside; management flagged an estimated loss‑of‑exclusivity impact of roughly CHF 1.0bn for 2026, a tax rate around 20% (versus 18.6% in 2025), and set a core‑EPS starting base of CHF 19.83 per share (after a CHF 0.37 FX/non‑monetary adjustment). For context they delivered 2025 group sales +7% (Pharma +9%, Diagnostics +2% / +7% ex‑China), core operating profit +13% and an operating free cash flow of CHF 16.2bn, expect a stronger cash year in 2026, and warned to model a divisional accounting shift that moves ~CHF 250m SG&A out of Pharma and ~CHF 50m out of Diagnostics into Corporate (≈‑0.5 and ‑0.4 percentage‑point margin effects).Roche Holding Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 63.36B | 62.40B | 60.44B | 65.81B | 62.80B |
| Gross Profit | 46.71B | 46.11B | 44.84B | 47.88B | 43.10B |
| EBITDA | 21.70B | 16.62B | 18.41B | 24.07B | 22.19B |
| Net Income | 12.88B | 8.28B | 11.50B | 12.42B | 13.93B |
Balance Sheet | |||||
| Total Assets | 100.82B | 101.80B | 90.47B | 88.15B | 92.32B |
| Cash, Cash Equivalents and Short-Term Investments | 15.49B | 17.32B | 10.51B | 9.77B | 13.03B |
| Total Debt | 31.67B | 36.35B | 30.78B | 26.54B | 32.55B |
| Total Liabilities | 62.89B | 65.64B | 57.20B | 56.14B | 63.97B |
| Stockholders Equity | 33.84B | 31.77B | 29.32B | 27.99B | 24.49B |
Cash Flow | |||||
| Free Cash Flow | 13.45B | 15.09B | 11.45B | 13.34B | 16.02B |
| Operating Cash Flow | 17.03B | 20.09B | 16.09B | 17.89B | 20.57B |
| Investing Cash Flow | -8.32B | -11.39B | -10.64B | -3.57B | -6.55B |
| Financing Cash Flow | -9.72B | -6.82B | -4.24B | -15.72B | -12.70B |
Roche Holding Technical Analysis
Positive
50.31
Price Trends
53.71
Negative
51.68
Negative
46.13
Positive
Market Momentum
-1.09
Negative
45.54
Neutral
60.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHHBY, the sentiment is Positive. The current price of 50.31 is above the 20-day moving average (MA) of 49.56, below the 50-day MA of 53.71, and above the 200-day MA of 46.13, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RHHBY.
Roche Holding Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $282.16B | 19.02 | 32.80% | 2.87% | 11.53% | -15.21% | |
74 Outperform | $176.37B | 17.94 | 41.01% | 2.52% | 2.51% | 1682.88% | |
73 Outperform | $320.22B | 12.11 | 41.23% | 1.63% | 7.26% | -8.64% | |
73 Outperform | £236.91B | 28.13 | 23.00% | 1.53% | 10.20% | 40.57% | |
69 Neutral | $113.92B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $303.31B | 14.46 | 36.19% | 3.12% | 1.49% | 7.89% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RHHBY
Roche Holding
50.31
14.16
39.17%
GILD
Gilead Sciences
142.09
43.32
43.86%
MRK
Merck & Company
122.68
47.85
63.94%
NVS
Novartis
155.06
53.65
52.90%
SNY
Sanofi
47.08
-1.05
-2.18%
GB:AZN
AstraZeneca
15,276.00
5,429.61
55.14%
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.