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Roche Holding (RHHBY)
OTHER OTC:RHHBY
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Roche Holding (RHHBY) AI Stock Analysis

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RHHBY

Roche Holding

(OTC:RHHBY)

Rating:75Outperform
Price Target:
$45.00
▲(10.11% Upside)
Roche Holding's strong financial performance and positive earnings call are the primary drivers of its score. While technical indicators suggest caution, the company's strategic advancements and solid dividend yield support a favorable outlook.
Positive Factors
Clinical Trial Results
Early trontinemab data shows competitive amyloid clearance and improved ARIA rate versus peers, but clinical outcomes will determine success.
Financial Performance
Roche's model was updated and numbers raised post recent business trends, with sales and EPS growth estimates increased.
Product Efficacy
Gazyva showed potential best-in-class profile in lupus nephritis and is likely to be the starter therapy of choice versus GSK's Benlysta.
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.
Placebo Response
The high placebo response rate in males was notable, where placebo achieved a 66.7% complete renal response compared to 42.9% for Gazyva.

Roche Holding (RHHBY) vs. SPDR S&P 500 ETF (SPY)

Roche Holding Business Overview & Revenue Model

Company DescriptionRoche 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 MoneyRoche generates revenue primarily through the sale of its pharmaceutical products, which include innovative and established medicines. The company earns significant income from its oncology drugs, such as Avastin, Herceptin, and Rituxan. Additionally, Roche's Diagnostics division contributes substantially to its revenue through the sales of diagnostic instruments and tests, including those used for cancer detection and management. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotech firms, enhancing its research capabilities and market reach. Furthermore, Roche benefits from a strong pipeline of drugs in development, which promises future revenue growth as these products receive regulatory approval and enter the market.

Roche Holding Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -0.66%|
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
The earnings call demonstrated strong financial performance and strategic advancements, particularly in the pharmaceutical segment with robust sales growth and significant pipeline developments. However, there were notable challenges, including the impact of China's pricing reforms on Diagnostics, safety concerns with Elevidys, and mixed trial results for some drugs.
Q2-2025 Updates
Positive Updates
Strong Group Sales Growth
Group sales increased by 7%, with Pharma growing by 10%, and Diagnostics growth would have been 6% without China pricing reforms.
Core Operating Profit Increase
Core operating profit grew by 11%, with core EPS increasing by 12%.
Pipeline Advancements
Significant pipeline developments with 4 drugs moving to Phase III trials, including prasi for Parkinson's disease and zosu for gram-negative bacteria.
Pharmaceutical Achievements
Vabysmo showed strong momentum with 18% growth, and Hemlibra had strong performance across all patient segments with a focus on non-inhibitor patients.
Diagnostics Innovation
Roche is preparing for the launch of the AXELIOS sequencing solution in 2026, which promises high speed and accuracy.
Improved Financial Outlook
Reduction in LOE impact guidance from CHF 1.2 billion to CHF 1 billion.
Global Regulatory Approvals
EU approval of Itovebi and U.S. approval of Susvimo.
Negative Updates
Diagnostics Impacted by China Reforms
Diagnostics was flat due to China health care pricing reforms, which led to a 26% decline in sales in China.
Astegolimab Mixed Results
Astegolimab had mixed results with one positive and one negative study, impacting its progress.
Elevidys Safety Concerns
Voluntary pause on new orders for Elevidys in ambulatory patients due to safety issues.
Columvi FDA Rejection
Received a CRL from the FDA for Columvi's second-line DLBCL indication.
Currency Impacts on Financials
Currency impacts resulted in a minus 5 percentage points on core operating profit.
Company Guidance
During the call, Roche reported strong half-year results for fiscal year 2025, with group sales increasing by 7%, led by a 10% rise in the Pharmaceuticals division, and a core operating profit boost of 11%. The Diagnostics division remained flat due to Chinese healthcare pricing reforms, although it would have seen a 6% increase without these reforms. The company achieved a core EPS growth of 12% and improved its core operating margin by 1.1 percentage points. Roche also revised its full-year loss of exclusivity (LOE) impact guidance to CHF 1 billion, down from CHF 1.2 billion. Notable milestones included the approval of Itovebi in the EU and Susvimo in the U.S., with strong performance in its oncology and neurology portfolios. For the full year, Roche anticipates mid-single-digit sales growth and high single-digit core EPS growth, maintaining a conservative outlook due to geopolitical uncertainties. The company's commitment to R&D excellence and resource reallocation was emphasized, with significant savings and reinvestments aimed at fast-tracking key assets. The company is also preparing for an exciting year with multiple Phase III transitions and regulatory approvals.

Roche Holding Financial Statement Overview

Summary
Roche Holding has strong revenue growth and a solid gross profit margin, indicating efficient cost management. However, the decline in net income and return on equity, along with increased leverage, suggests some pressure on profitability. Strong cash flow generation provides a solid financial foundation despite these challenges.
Income Statement
75
Positive
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
80
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue62.40B60.44B63.28B62.80B58.32B
Gross Profit46.11B44.08B44.44B43.10B41.97B
EBITDA16.62B18.41B20.80B22.19B22.97B
Net Income8.28B11.50B12.42B13.93B14.29B
Balance Sheet
Total Assets101.80B90.47B88.15B92.32B86.14B
Cash, Cash Equivalents and Short-Term Investments17.32B10.51B9.77B13.03B12.33B
Total Debt36.35B30.78B26.54B32.55B15.41B
Total Liabilities65.64B57.20B56.14B63.97B46.37B
Stockholders Equity31.77B29.32B27.99B24.49B36.34B
Cash Flow
Free Cash Flow15.09B11.45B13.34B16.02B11.47B
Operating Cash Flow20.09B16.09B17.89B20.57B18.16B
Investing Cash Flow-11.39B-10.64B-3.57B-6.55B-9.08B
Financing Cash Flow-6.82B-4.24B-15.72B-12.70B-9.24B

Roche Holding Technical Analysis

Technical Analysis Sentiment
Positive
Last Price40.87
Price Trends
50DMA
40.06
Positive
100DMA
39.72
Positive
200DMA
38.78
Positive
Market Momentum
MACD
0.09
Negative
RSI
59.85
Neutral
STOCH
90.94
Negative
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 40.87 is above the 20-day moving average (MA) of 39.36, above the 50-day MA of 40.06, and above the 200-day MA of 38.78, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 90.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RHHBY.

Roche Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$215.01B13.2735.44%3.66%2.00%20.01%
79
Outperform
$252.57B29.9719.76%1.93%15.08%29.15%
78
Outperform
$244.15B18.2432.82%3.15%12.38%-12.67%
76
Outperform
$125.01B12.588.39%4.31%-9.32%120.62%
75
Outperform
$262.28B23.6131.98%3.33%7.26%-8.64%
68
Neutral
$146.39B23.4733.26%2.72%3.69%501.26%
65
Neutral
¥346.07B11.32-1.45%2.37%9.60%-12.35%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RHHBY
Roche Holding
40.87
-0.28
-0.68%
AZN
AstraZeneca
80.97
-3.87
-4.56%
GILD
Gilead Sciences
114.77
40.21
53.93%
MRK
Merck & Company
87.37
-25.10
-22.32%
NVS
Novartis
126.98
11.34
9.81%
SNY
Sanofi
51.35
-3.18
-5.83%
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: Aug 16, 2025