Roivant Sciences (ROIV) AI Stock Analysis

• Market Cap: $6.61B
• Dividend Yield: N/A
• Average Volume (3M): 7.46M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.97
• Revenue Growth: -20.84%
• EPS Growth: -102.48%
• Country: US
• Employees: 908
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 713,549,440
• 10 Day Avg. Volume: 8,417,820
• 30 Day Avg. Volume: 7,456,292
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 78.92
• Price to Cash Flow (P/CF): -9.30
• P/FCF Ratio: 0.00
• 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: $44.25
• Price Target Upside: 387.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Roivant Sciences faces notable financial challenges with declining revenue and negative cash flows, yet maintains a strong cash position. Technical indicators suggest a bearish trend, while the valuation reflects significant losses. The earnings call highlighted a promising pipeline, though risks from litigation and competition remain. Overall, while there is potential for growth, significant challenges must be addressed.

Positive Factors

Market Opportunities

IMVT-1402's potential launch in Graves' disease and difficult-to-treat rheumatoid arthritis represents significant value drivers due to lower competition and unmet needs.

Strategic Partnerships

VantAI has research partnerships with major companies like JNJ, BMY, and BPMC, demonstrating confidence and interest from significant industry players.

Technological Innovation

VantAI's model platform Neo-1 is expected to exceed the capabilities of Google's AlphaFold 3, highlighting its advanced technological capabilities.

Negative Factors

Investor Overlook

Breopocitinib's data is very likely to work and is largely overlooked by investors with a sizable commercial opportunity.

Litigation Risks

Minimal risk is seen for ROIV in receiving a large award from MRNA LNP litigation, with potential outcomes possibly spurring a settlement.

Roivant Sciences Business Overview & Revenue Model

Company Description

Roivant Sciences (ROIV) is a biopharmaceutical company focused on improving healthcare by rapidly developing innovative medicines. The company operates in the biotechnology and pharmaceuticals sector, with a unique model of creating 'Vants,' which are nimble, entrepreneurial subsidiaries dedicated to developing specific drug candidates or technologies. Roivant's core products and services involve the development and commercialization of novel therapeutics across a diverse range of therapeutic areas, including oncology, neurology, and rare diseases.

How the Company Makes Money

Roivant Sciences makes money through the development, licensing, and commercialization of its drug candidates. The company generates revenue by advancing its pipeline of therapeutic candidates through clinical trials and eventually bringing successful drugs to market. Revenue streams include milestone payments and royalties from partnerships and collaborations with other pharmaceutical companies, as well as potential direct sales of approved drugs. Roivant's business model is also supported by strategic partnerships and collaborations that provide funding and resources to accelerate the development of its drug candidates. Additionally, the company may receive investments or funding from venture capital or other financial entities interested in its innovative approach to drug development.

Roivant Sciences Financial Statement Overview

Summary

Roivant Sciences faces significant financial challenges, including declining revenue, persistent losses, and negative cash flows. While the balance sheet shows strong equity and cash positions, profitability and cash flow generation are major concerns. Strategic shifts may be necessary to enhance financial performance and stabilize cash flow.

Income Statement

Roivant Sciences shows a mixed income statement performance. The TTM revenue decreased to $97.56M from an annual figure of $124.80M, indicating negative growth. Gross profit margin remains high at around 89%, but the company consistently posts negative EBIT and net income, suggesting ongoing operational challenges. The TTM net profit margin is negative due to significant losses, highlighting profitability issues.

Balance Sheet

The balance sheet suggests a strong equity position with stockholders' equity of $5.19B in the TTM. The debt-to-equity ratio is low, indicating limited leverage risk. With a high cash position, the company maintains substantial liquidity. However, the negative net income impacts ROE, which remains negative, suggesting challenges in generating returns for equity holders.

Cash Flow

Cash flows highlight significant challenges with negative operating and free cash flow in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow struggles relative to net losses. Free cash flow growth is also negative, reflecting ongoing cash burn issues. Despite sizeable cash reserves, the company's cash flow generation is weak.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
97.56M	124.80M	61.28M	55.29M	23.80M	67.69M
	Gross Profit
86.85M	96.83M	48.15M	46.32M	21.74M	66.56M
	EBIT
-1.00B	4.24B	-1.18B	-1.35B	-1.07B	-532.42M
	EBITDA
4.44B	4.31B	-1.18B	-916.71M	-895.74M	-553.30M
	Net Income Common Stockholders
-116.62M	4.35B	-1.01B	-845.26M	-809.23M	1.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.15B	6.54B	1.68B	2.06B	2.13B	2.19B
	Total Assets
5.79B	7.22B	2.39B	2.59B	2.69B	2.48B
	Total Debt
100.31M	499.75M	481.40M	283.89M	244.98M	180.88M
	Net Debt
-1.89B	-6.04B	-1.20B	-1.78B	-1.81B	-2.00B
	Total Liabilities
256.38M	773.95M	782.02M	523.70M	527.69M	368.36M
	Stockholders Equity
5.19B	5.97B	1.16B	1.66B	1.80B	2.03B
Cash Flow		Free Cash Flow
-779.48M	-766.65M	-856.08M	-695.16M	-557.94M	-766.75M
	Operating Cash Flow
-775.34M	-765.27M	-843.39M	-677.73M	-552.14M	-761.83M
	Investing Cash Flow
-2.83B	5.20B	-44.27M	303.30M	-31.70M	1.69B
	Financing Cash Flow
-1.08B	419.36M	499.46M	306.79M	456.26M	217.16M

Roivant Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROIV, the sentiment is Negative. The current price of 9.08 is below the 20-day moving average (MA) of 10.29, below the 50-day MA of 10.52, and below the 200-day MA of 11.28, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 8.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROIV.

Roivant Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	79 Outperform	$7.33B	16.76	198.42%	―	22.44%	63.47%
JAZZ	77 Outperform	$6.69B	12.66	14.31%	―	6.12%	38.88%
LEGN	57 Neutral	$5.56B	―	-15.45%	―	119.97%	67.21%
ROIV	55 Neutral	$6.61B	1.93	-7.10%	―	-20.84%	-102.48%
MDGL	54 Neutral	$6.86B	―	-80.35%	―	―	-10.89%
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
BBIO	46 Neutral	$6.25B	―	35.68%	―	2285.27%	27.90%

Roivant Sciences Corporate Events

Roivant Sciences Engages Former Officer for Advisory Role

On March 16, 2025, Roivant Sciences, Inc. entered into a consulting agreement with its former Chief Accounting Officer, Rakhi Kumar, who stepped down on February 20, 2025. This agreement allows Ms. Kumar to provide advisory and transition services while continuing to vest into her equity incentive awards over an 18-month term, potentially impacting her and the company’s operational continuity.

Roivant Sciences Announces Positive Results for Batoclimab Studies

On March 19, 2025, Roivant Sciences announced positive results from its subsidiary Immunovant’s studies on batoclimab for myasthenia gravis (MG) and chronic inflammatory demyelinating polyneuropathy (CIDP). The Phase 3 MG study showed significant improvements in the MG-ADL score, while the Phase 2b CIDP study demonstrated promising initial results with a high responder rate. These findings support the potential of deeper IgG reduction in improving clinical outcomes for autoimmune diseases, although Immunovant plans to focus on advancing its lead asset IMVT-1402 for future studies rather than seeking immediate regulatory approval for batoclimab.

Roivant Sciences Appoints New Chief Accounting Officer

Rakhi Kumar resigned from her roles as the Principal Accounting Officer of Roivant Sciences Ltd. and Chief Accounting Officer of its subsidiary, effective February 20, 2025. Jennifer Humes has been appointed as her successor, bringing extensive experience from JPMorgan Chase, Citigroup, and Deloitte. Her compensation package includes a base salary, sign-on bonus, and equity incentives, with specific vesting schedules.