Roivant Sciences (ROIV) AI Stock Analysis

• Market Cap: $8.14B
• Dividend Yield: N/A
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.95
• Revenue Growth: -85.32%
• EPS Growth: -111.82%
• Country: US
• Employees: 908
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 682,881,700
• 10 Day Avg. Volume: 5,077,757
• 30 Day Avg. Volume: 4,482,834
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 160.61
• Enterprise Value/Gross Profit: 177.70
• Enterprise Value/Ebitda: -3.80
• 1Y Price Target: $16.33
• Price Target Upside: 40.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 48 Neutral
• Price Target: $11.50 ▼(-1.20% Downside)

Roivant Sciences' overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and persistent losses. While technical indicators suggest a neutral to slightly bullish trend, the negative valuation metrics highlight concerns about the stock's current pricing. The positive sentiment from the earnings call and corporate events, such as the share repurchase program, provide some optimism but are not enough to offset the financial difficulties.

Positive Factors

Drug Development

Brepocitinib is nicely positioned as an oral therapy to be used ahead of biologics and cell therapy, even if those potentially offer improved efficacy.

Financial Performance

ROIV ended the quarter with $4.5B in consolidated cash, cash equivalents, restricted cash, and marketable securities.

Share Repurchase Program

The company completed its $1.5B share repurchase program, reducing outstanding shares by over 15% since March 31, 2024.

Negative Factors

Clinical Trial Risks

The trial carries some risks due to the lack of randomized experience with brepocitinib in the indication.

Competition

There is increasing competition in Graves' disease and thyroid eye disease, with novel therapies being developed by other companies.

Roivant Sciences Business Overview & Revenue Model

Company Description

Roivant Sciences Ltd., a biopharmaceutical and healthcare technology company that researches and develops medicines. The company develops product candidates for the treatment of various therapeutics, including solid tumors, sickle cell diseases, hypophosphatasia, oncologic malignancies, psoriasis, atopic dermatitis, vitiligo, hyperhidrosis, acne, myasthenia gravis, warm autoimmune hemolytic anemia, thyroid eye diseases, sarcoidosis, and staph aureus bacteremia. The company was founded in 2014 and is based in London, the United Kingdom.

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 with declining revenues, sustained losses, and negative cash flows. Despite a strong equity position, the company's profitability and cash generation are under pressure, raising concerns about long-term viability without strategic changes or improved operational efficiency.

Income Statement

Roivant Sciences shows significant volatility in revenue with a declining trend from 2020 to 2025. The company has faced substantial EBIT and net income losses consistently, indicating operational challenges. Gross Profit Margin has been positive, but high EBIT and EBITDA losses reflect underlying inefficiencies.

Balance Sheet

The company's balance sheet highlights a strong equity position relative to debt, with total debt significantly lower than equity. However, the company's continuous negative net income impacts return on equity. The equity ratio is high, suggesting financial stability, but the persistent losses pose a risk.

Cash Flow

Roivant Sciences demonstrates weak cash flow management with consistently negative operating and free cash flows. Although investments have been substantial, operational cash flow remains negative, and free cash flow shows no growth, indicating challenges in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.23M	29.05M	124.80M	61.28M	55.29M	23.80M
Gross Profit	21.00M	28.14M	96.83M	48.15M	46.32M	21.74M
EBITDA	-981.34M	-674.26M	4.31B	-1.18B	-916.71M	-895.74M
Net Income	-490.63M	-171.98M	4.35B	-1.01B	-845.26M	-809.23M
Balance Sheet
Total Assets	5.03B	5.44B	7.22B	2.39B	2.59B	2.69B
Cash, Cash Equivalents and Short-Term Investments	4.50B	4.89B	6.54B	1.68B	2.06B	2.13B
Total Debt	99.69M	100.17M	499.75M	481.40M	283.89M	244.98M
Total Liabilities	216.70M	249.74M	773.95M	782.02M	523.70M	527.69M
Stockholders Equity	4.35B	4.69B	5.97B	1.16B	1.66B	1.80B
Cash Flow
Free Cash Flow	-858.67M	-844.05M	-766.65M	-856.08M	-695.16M	-557.94M
Operating Cash Flow	-851.00M	-839.45M	-765.27M	-843.39M	-677.73M	-552.14M
Investing Cash Flow	-2.85B	-1.77B	5.20B	-44.27M	303.30M	-31.70M
Financing Cash Flow	-746.95M	-1.22B	419.36M	499.46M	306.79M	456.26M

Roivant Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11.64 is above the 20-day moving average (MA) of 11.64, above the 50-day MA of 11.46, and above the 200-day MA of 11.17, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.75 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	79 Outperform	$8.40B	16.41	179.14%	―	34.97%	71.10%
JAZZ	64 Neutral	$7.47B	15.58	-10.84%	―	4.52%	-205.13%
BBIO	58 Neutral	$9.04B	―	35.68%	―	7.62%	-55.29%
MDGL	56 Neutral	$9.19B	―	-36.30%	―	3421.98%	49.62%
Sector *	51 Neutral	$7.78B	-0.06	-40.08%	2.29%	21.32%	-1.82%
LEGN	51 Neutral	$6.39B	―	-29.70%	―	75.01%	-13.20%
ROIV	48 Neutral	$8.14B	1.93	-15.84%	―	-85.32%	-111.82%

Roivant Sciences Corporate Events

Roivant Sciences Announces $500M Share Repurchase Program

Roivant Sciences Ltd. has announced a new common share repurchase program on June 24, 2025, allowing for the repurchase of up to $500 million of its common shares. This initiative follows a previous $1.5 billion repurchase program from April 2024, which has been fully utilized. The repurchase will be funded with available cash, with no set expiration date, and will depend on market conditions and other factors.