Roivant Sciences (ROIV) AI Stock Analysis

• Market Cap: $7.55B
• Dividend Yield: N/A
• Average Volume (3M): 4.89M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.98
• Revenue Growth: -38.94%
• EPS Growth: -104.46%
• Country: US
• Employees: 908
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 679,806,100
• 10 Day Avg. Volume: 5,326,142
• 30 Day Avg. Volume: 4,886,384
• PEG Ratio: -0.41
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.14
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 8.03
• Enterprise Value/Gross Profit: 46.80
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: $15.00
• Price Target Upside: 31.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $11.50 ▲(0.52%Upside)

Roivant Sciences' stock score is primarily influenced by its financial struggles and valuation concerns, which are mitigated by promising pipeline developments and strategic corporate actions. The company's strong cash position and potential market advancements provide a balanced outlook despite significant risks.

Positive Factors

Clinical Trials

The VALOR trial's design, including steroid tapering measures, is expected to enhance the reliability of brepocitinib's results by minimizing placebo response.

Market Potential

Brepocitinib's convenient oral dosing and novel mechanism-of-action position it as a potential first approved JAK inhibitor in the dermatomyositis space.

Negative Factors

Market Competition

IMVT-1402 may struggle to replace Vyvgart in the MG market due to Vyvgart's established efficacy, safety profile, and market dominance.

Regulatory Strategies

ROIV has not asked FDA for fast track nor breakthrough therapy designation in dermatomyositis because it doesn’t have the data to justify doing so.

Roivant Sciences Business Overview & Revenue Model

Company Description

Roivant Sciences (ROIV) is a biopharmaceutical company focused on developing transformative medicines by building 'Vants,' which are nimble, entrepreneurial biotech companies. Each Vant operates with an independent management team and focuses on a specific therapeutic area or technology. Roivant's core products and services include drug development in areas such as neurology, immunology, and rare diseases, with an emphasis on innovation and rapid commercialization.

How the Company Makes Money

Roivant Sciences makes money primarily through the development and commercialization of pharmaceutical products. The company generates revenue by advancing its drug candidates through clinical trials and obtaining regulatory approval for their sale. Roivant may also earn income through licensing agreements, partnerships, and collaborations with other pharmaceutical companies, where they might receive upfront payments, milestone-based payments, and royalties on sales. Additionally, Roivant's unique business model of creating Vants allows for the potential monetization of these subsidiaries through mergers, acquisitions, or public offerings, contributing further to their financial growth.

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: Positive
• Last Price: 11.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROIV, the sentiment is Positive. The current price of 11.44 is above the 20-day moving average (MA) of 11.13, above the 50-day MA of 10.86, and above the 200-day MA of 11.24, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 39.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROIV.

Roivant Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	76 Outperform	$6.54B	14.10	147.06%	―	25.65%	57.10%
JAZZ	73 Outperform	$6.48B	14.60	12.25%	―	5.76%	49.58%
BBIO	58 Neutral	$7.61B	―	35.68%	―	-41.71%	-9.37%
ROIV	56 Neutral	$7.55B	1.93	-8.56%	―	-38.94%	-104.46%
MDGL	56 Neutral	$6.33B	―	-50.16%	―	―	21.83%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
LEGN	53 Neutral	$6.39B	―	-20.00%	―	112.46%	54.33%

Roivant Sciences Corporate Events

Roivant Sciences Announces Leadership Changes at Immunovant

On April 21, 2025, Roivant Sciences announced significant leadership changes at its subsidiary, Immunovant, Inc., including the appointment of Eric Venker as CEO and Tiago Girao as CFO, as part of a strategic transition to enhance operational involvement and oversight. The company is expanding the development of its drug IMVT-1402 into two new indications, Sjögren’s Disease and Cutaneous Lupus Erythematosus, with promising clinical data and a strong cash position to support these initiatives, potentially impacting its market positioning and stakeholder interests.

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.