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Roche Holding (RHHBY)
OTHER OTC:RHHBY
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Roche Holding
(OTC:RHHBY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$55.00
â–²(13.36% Upside)
Roche Holding's strong financial performance and strategic advancements in pharmaceuticals drive its score. However, valuation concerns and technical indicators suggest caution. The earnings call provided positive insights, but challenges in the Diagnostics division and safety concerns need addressing.
Positive Factors
Pharmaceutical Sales Growth
The strong sales growth in the Pharmaceuticals Division indicates robust demand for Roche's medicines, supporting long-term revenue stability and market leadership.
Pipeline Advancements
Advancements in the drug pipeline suggest future growth potential and reinforce Roche's commitment to innovation, enhancing its competitive edge.
Regulatory Approvals
Recent regulatory approvals expand Roche's product offerings, potentially increasing market share and driving future revenue growth.
Negative Factors
Diagnostics Division Challenges
Pricing reforms in China have impacted the Diagnostics division, potentially limiting growth and profitability in this segment.
Rising Leverage
Increased leverage could strain financial flexibility and impact Roche's ability to invest in growth opportunities, affecting long-term stability.
Decline in Net Income
A decline in net income and profit margin suggests potential challenges in maintaining profitability, which could affect shareholder returns.
Roche Holding (RHHBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$309.38B
Dividend Yield1.76%
Average Volume (3M)2.00M
Price to Earnings (P/E)28.3
Beta (1Y)0.21
Revenue Growth7.26%
EPS Growth-8.64%
CountryUS
Employees103,249
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)1.74
Shares Outstanding5,620,501,500
10 Day Avg. Volume1,629,555
30 Day Avg. Volume1,996,650
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)6.35
Price to Sales (P/S)3.24
P/FCF Ratio13.38
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue6.31
Enterprise Value/Gross Profit8.58
Enterprise Value/Ebitda23.49
Forecast
1Y Price Target
$47.33Price Target Upside-2.45% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.09
Revenue Forecast (FY)$77.51B
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 and diagnostic tools. The Pharmaceuticals division accounts for the majority of the company's revenue, with key products including cancer treatments like Avastin and Herceptin, as well as other therapies for various diseases. The Diagnostics division contributes through the sale of diagnostic tests and equipment, which are essential for disease detection and management. Roche also benefits from long-term partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare providers, enhancing its product offerings and expanding its market reach. Additionally, its investment in research and development allows Roche to continuously innovate and introduce new therapies, further driving revenue growth.
Roche Holding Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
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 demonstrates strong operational performance with consistent revenue growth and a solid balance sheet. However, declining net income and increased leverage are concerns. Strong cash flow generation supports the financial health.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.75
Positive
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.80
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.57B | 62.40B | 60.44B | 65.81B | 62.80B | 58.32B |
| Gross Profit | 34.25B | 46.11B | 44.84B | 44.44B | 43.10B | 41.97B |
| EBITDA | 12.50B | 16.62B | 18.41B | 20.80B | 22.19B | 22.97B |
| Net Income | 5.72B | 8.28B | 11.50B | 12.42B | 13.93B | 14.29B |
Balance Sheet | ||||||
| Total Assets | 94.77B | 101.80B | 90.47B | 88.15B | 92.32B | 86.14B |
| Cash, Cash Equivalents and Short-Term Investments | 12.03B | 17.32B | 10.51B | 9.77B | 13.03B | 12.33B |
| Total Debt | 34.63B | 36.35B | 30.78B | 26.54B | 32.55B | 15.41B |
| Total Liabilities | 61.72B | 65.64B | 57.20B | 56.14B | 63.97B | 46.37B |
| Stockholders Equity | 28.68B | 31.77B | 29.32B | 27.99B | 24.49B | 36.34B |
Cash Flow | ||||||
| Free Cash Flow | 12.59B | 15.09B | 11.45B | 13.34B | 16.02B | 11.47B |
| Operating Cash Flow | 15.23B | 20.09B | 16.09B | 17.89B | 20.57B | 18.16B |
| Investing Cash Flow | -6.82B | -11.39B | -10.64B | -3.57B | -6.55B | -9.08B |
| Financing Cash Flow | -4.81B | -6.82B | -4.24B | -15.72B | -12.70B | -9.24B |
Roche Holding Technical Analysis
Positive
48.52
Price Trends
44.63
Positive
42.56
Positive
41.44
Positive
Market Momentum
1.39
Negative
61.67
Neutral
63.27
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 48.52 is above the 20-day moving average (MA) of 47.02, above the 50-day MA of 44.63, and above the 200-day MA of 41.44, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 63.27 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $247.51B | 13.19 | 39.51% | 3.25% | 1.59% | 58.02% | |
80 Outperform | $253.50B | 17.90 | 32.93% | 3.02% | 11.53% | -15.21% | |
79 Outperform | $281.05B | 29.71 | 21.73% | 1.74% | 12.95% | 44.28% | |
75 Outperform | $150.40B | 18.78 | 40.53% | 2.59% | 2.76% | 6407.19% | |
75 Outperform | $120.76B | 12.32 | 8.39% | 4.47% | -9.32% | 120.62% | |
74 Outperform | $309.38B | 28.32 | 31.98% | 1.76% | 7.26% | -8.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RHHBY
Roche Holding
48.52
12.79
35.80%
AZN
AstraZeneca
90.18
23.01
34.26%
GILD
Gilead Sciences
121.22
33.25
37.80%
MRK
Merck & Company
99.72
-0.36
-0.36%
NVS
Novartis
132.16
33.47
33.91%
SNY
Sanofi
49.53
2.59
5.52%
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.