Roche Holding (RHHBY) AI Stock Analysis

• Market Cap: $259.96B
• Dividend Yield: 3.39%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.40
• Revenue Growth: 5.15%
• EPS Growth: -26.52%
• Country: US
• Employees: 103,249
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.18
• Shares Outstanding: 5,620,501,500
• 10 Day Avg. Volume: 1,205,781
• 30 Day Avg. Volume: 1,570,553
• PEG Ratio: 0.09
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.78
• 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: $44.00
• Price Target Upside: 9.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $44.00 ▲(9.95%Upside)

Roche Holding's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust sales growth and strategic advancements. Technical analysis shows mixed signals, and high valuation suggests limited short-term upside. Key risks include declining net income and market-specific challenges.

Positive Factors

Product Performance

Early trontinemab data shows competitive amyloid clearance and improved ARIA rate versus peers.

Sales and Earnings Growth

Roche's model was updated and numbers raised post recent business trends, with sales and EPS growth estimates increased.

Negative Factors

Clinical Trial Safety

There was a case of fatal cerebral macrohemorrhage in Part 2, leading to updated trial criteria to exclude patients with superficial siderosis.

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 treating oncology, neuroscience, infectious, immunology, cardiovascular and metabolism, ophthalmology, and respiratory, as well as anemia, cancer, dermatology, hemophilia, inflammatory and autoimmune, neurological, and transplantation. It also offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases. In addition, the company supplies diagnostic instruments and reagents. The company was founded in 1896 and is headquartered in Basel, Switzerland.

How the Company Makes Money

Roche Holding generates revenue primarily through two main divisions: Pharmaceuticals and Diagnostics. The Pharmaceuticals Division, which accounts for the majority of Roche's revenue, involves the discovery, development, and marketing of prescription medicines, particularly in the areas of oncology, immunology, and infectious diseases. Key products include biologic drugs, personalized medicine, and biosimilars. The Diagnostics Division earns revenue by offering a wide range of diagnostic tests and systems, including in-vitro diagnostics, molecular diagnostics, and tissue diagnostics, which are critical in disease detection and monitoring. Roche also engages in strategic partnerships and collaborations with other biotech and pharmaceutical companies, enhancing its product pipeline and expanding its market reach. Additionally, Roche invests heavily in research and development to maintain its leadership in innovation and to bring new therapies and diagnostic tools to market.

Roche Holding Financial Statement Overview

Summary

Roche Holding demonstrates strong operational performance with consistent revenue growth and efficient cost management. However, declines in net income and net profit margin, along with increased leverage, suggest some financial pressures. The overall financial position remains robust, supported by strong cash flows.

Income Statement

Roche Holding has shown consistent revenue growth with a compound annual growth rate of approximately 1.33% over the past five years. The gross profit margin is strong, averaging around 72.5%, indicating efficient cost management. However, there has been a decline in net income, leading to a reduced net profit margin from 24.5% in 2020 to 13.3% in 2024. EBIT and EBITDA margins have been stable but slightly declining, which could indicate pressure on operational efficiency.

Balance Sheet

The company's equity ratio is solid at around 31.2%, reflecting a stable capital structure. The debt-to-equity ratio has increased due to rising total debt, but it remains manageable at approximately 1.14 in 2024. Return on equity has decreased from 39.4% in 2020 to 26.1% in 2024, suggesting a decline in profitability relative to shareholder equity. The balance sheet remains robust, but the increase in leverage warrants monitoring.

Cash Flow

Roche Holding's operating cash flow is strong, and the company maintains a healthy free cash flow to net income ratio, indicating efficient cash conversion. Free cash flow growth has been positive, but the growth rate has slowed, suggesting potential challenges in maintaining past growth levels. The operating cash flow to net income ratio is above 2, demonstrating strong cash generation capabilities relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
59.69B	62.40B	60.44B	63.28B	62.80B	58.32B
	Gross Profit
43.94B	46.11B	44.08B	44.44B	43.10B	41.97B
	EBIT
17.74B	13.42B	15.39B	18.18B	17.28B	17.73B
	EBITDA
17.60B	16.62B	18.41B	20.80B	22.19B	22.97B
	Net Income Common Stockholders
10.62B	8.28B	11.50B	12.42B	13.93B	14.29B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.81B	17.32B	10.51B	9.77B	13.03B	12.33B
	Total Assets
95.79B	101.80B	90.47B	88.15B	92.32B	86.14B
	Total Debt
36.17B	36.35B	30.78B	26.54B	32.55B	15.41B
	Net Debt
31.35B	29.38B	25.41B	21.55B	25.70B	9.68B
	Total Liabilities
62.91B	65.64B	57.20B	56.14B	63.97B	46.37B
	Stockholders Equity
28.94B	31.77B	29.32B	27.99B	24.49B	36.34B
Cash Flow		Free Cash Flow
11.42B	15.09B	11.45B	13.34B	16.02B	11.47B
	Operating Cash Flow
15.82B	20.09B	16.09B	17.89B	20.57B	18.16B
	Investing Cash Flow
-13.14B	-11.39B	-10.64B	-3.57B	-6.55B	-9.08B
	Financing Cash Flow
-993.00M	-6.82B	-4.24B	-15.72B	-12.70B	-9.24B

Roche Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHHBY, the sentiment is Neutral. The current price of 40.02 is below the 20-day moving average (MA) of 40.30, above the 50-day MA of 39.49, and above the 200-day MA of 38.49, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 26.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RHHBY.

Roche Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	80 Outperform	$225.28B	18.36	32.95%	3.38%	6.30%	-13.28%
MRK	76 Outperform	$203.29B	11.79	39.31%	3.96%	4.40%	654.93%
JNJ	75 Outperform	$373.47B	17.25	29.45%	3.35%	-0.37%	29.21%
RHHBY	73 Outperform	$259.96B	27.24	26.76%	3.39%	5.15%	-26.52%
AZN	73 Outperform	$225.37B	29.34	19.81%	2.85%	15.48%	22.70%
SNY	67 Neutral	$120.41B	20.56	7.34%	4.48%	-4.57%	2.96%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%