Roivant Sciences (ROIV) AI Stock Analysis

• Market Cap: $14.21B
• Dividend Yield: N/A
• Average Volume (3M): 7.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -83.82%
• EPS Growth: -109.22%
• Country: US
• Employees: 908
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.20
• Shares Outstanding: 695,491,640
• 10 Day Avg. Volume: 4,822,157
• 30 Day Avg. Volume: 7,244,628
• PEG Ratio: 0.41
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 251.93
• P/FCF Ratio: -8.67
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 317.61
• Enterprise Value/Gross Profit: 329.42
• Enterprise Value/Ebitda: -6.48
• 1Y Price Target: $24.50
• Price Target Upside: 21.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.2
• Revenue Forecast (FY): $15.41M

• Rating: 58 Neutral
• Price Target: $21.00 ▲(3.75% Upside)

Roivant Sciences' overall stock score reflects a mix of financial challenges and promising corporate developments. The company's financial performance is weak due to declining revenues and profitability issues, but technical indicators suggest a positive trend. The valuation is low due to negative earnings, yet recent corporate events indicate potential for future growth, contributing positively to the score.

Positive Factors

Pipeline Progress

The company's robust pipeline progress and strategic plans for multiple product launches indicate strong potential for long-term growth and innovation in the biopharmaceutical sector.

Strategic Partnerships

Strategic partnerships with larger pharmaceutical companies enhance Roivant's ability to leverage resources, share risks, and accelerate drug development, strengthening its competitive position.

Financial Stability

Low leverage provides Roivant with financial stability and flexibility, allowing it to navigate industry challenges and invest in growth opportunities without significant debt burden.

Negative Factors

Declining Revenue

The declining revenue trend poses a challenge to Roivant's financial performance, potentially impacting its ability to fund R&D and sustain long-term growth.

Profitability Issues

Substantial losses and negative profit margins highlight operational inefficiencies, which may hinder Roivant's ability to achieve sustainable profitability and return value to shareholders.

Cash Flow Challenges

Negative cash flow growth indicates challenges in generating sufficient cash to support operations and investments, potentially limiting Roivant's capacity to pursue strategic initiatives.

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 generates revenue primarily through the development and commercialization of pharmaceutical products. The company makes money from several key revenue streams, including milestone payments from collaborations with pharmaceutical companies, royalties on product sales from its subsidiaries, and potential revenues from licensing agreements. Roivant often partners with larger pharmaceutical companies to co-develop drugs, which can provide upfront payments and shared profits. Additionally, the company may receive funding from investors and venture capitalists to support its research and development activities, further contributing to its financial resources.

Roivant Sciences Financial Statement Overview

Summary

Roivant Sciences faces significant financial challenges with declining revenues and substantial losses. Despite strong gross margins, the company struggles with profitability and cash flow generation. The low leverage is a positive aspect, providing financial stability, but the negative return on equity and cash flow issues highlight the need for operational improvements.

Income Statement

Roivant Sciences shows a declining revenue trend with a negative revenue growth rate of -12.5% TTM. The company has a high gross profit margin of 96.4% TTM, indicating efficient cost management. However, the net profit margin is significantly negative at -18.4% TTM, reflecting substantial losses. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0227 TTM, indicating low leverage and financial stability. However, the return on equity is negative at -8.05% TTM, highlighting poor profitability. The equity ratio is not provided, but the low debt levels suggest a strong equity position.

Cash Flow

Roivant Sciences has a negative free cash flow growth rate of -8.65% TTM, indicating declining cash generation. The operating cash flow to net income ratio is negative, suggesting cash flow challenges. However, the free cash flow to net income ratio is slightly positive at 1.02 TTM, indicating some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.33M	29.05M	32.71M	61.28M	55.29M	23.80M
Gross Profit	19.60M	28.14M	31.11M	48.15M	46.32M	21.74M
EBITDA	-996.95M	-1.10B	-802.89M	-1.18B	-910.77M	-720.58M
Net Income	-373.97M	-171.98M	4.35B	-1.01B	-845.26M	-809.23M
Balance Sheet
Total Assets	5.06B	5.44B	7.22B	2.39B	2.59B	2.69B
Cash, Cash Equivalents and Short-Term Investments	4.39B	4.89B	6.54B	1.68B	2.06B	2.13B
Total Debt	98.85M	100.17M	499.75M	481.40M	283.89M	244.98M
Total Liabilities	257.14M	249.74M	773.95M	782.02M	523.70M	527.69M
Stockholders Equity	4.36B	4.69B	5.97B	1.16B	1.66B	1.90B
Cash Flow
Free Cash Flow	-784.38M	-844.05M	-766.65M	-856.08M	-695.16M	-557.94M
Operating Cash Flow	-769.86M	-839.45M	-765.27M	-843.39M	-677.73M	-552.14M
Investing Cash Flow	562.97M	-1.77B	5.20B	-44.27M	303.30M	-31.70M
Financing Cash Flow	-575.28M	-1.22B	419.36M	499.46M	306.79M	456.26M

Roivant Sciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.24
• 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 Neutral. The current price of 20.24 is below the 20-day moving average (MA) of 20.59, above the 50-day MA of 19.05, and above the 200-day MA of 13.36, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ROIV.

Roivant Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORT	76 Outperform	$8.75B	97.47	16.47%	―	17.92%	-26.13%
HALO	73 Outperform	$7.28B	13.17	124.50%	―	31.19%	59.01%
VRNA	68 Neutral	―	―	―	―	―	34.29%
JAZZ	64 Neutral	$10.27B	―	-9.06%	―	4.14%	-179.96%
TECH	64 Neutral	$9.16B	120.24	3.80%	0.53%	3.85%	-48.17%
ROIV	58 Neutral	$14.21B	―	-14.73%	―	-83.82%	-109.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Roivant Sciences Corporate Events

Roivant Sciences Highlights Pipeline Progress at Investor Day

On December 11, 2025, Roivant Sciences hosted its Investor Day, highlighting significant progress in its pipeline and outlining its growth strategy. The company announced plans for multiple product launches and filings over the next three years, including brepocitinib for dermatomyositis, with a commercial launch expected in early 2027. Roivant also reported positive updates on clinical trials, including accelerated timelines for brepocitinib in non-infectious uveitis and cutaneous sarcoidosis, as well as the IMVT-1402 trial for rheumatoid arthritis. Additionally, Roivant’s financing efforts have extended Immunovant’s cash runway to support the launch of IMVT-1402 in Graves’ disease, positioning the company for long-term shareholder value creation.

Roivant Sciences Announces Positive Phase 3 Study Results

On September 17, 2025, Roivant Sciences announced positive results from the Phase 3 VALOR study of brepocitinib in dermatomyositis, marking the first successful 52-week placebo-controlled trial for this condition. The study demonstrated significant improvements in patients, with brepocitinib showing a clinically meaningful response compared to placebo on both primary and secondary endpoints, and a consistent safety profile. This breakthrough positions brepocitinib as a potential impactful treatment option for dermatomyositis, with an NDA filing planned for the first half of 2026.

Roivant Sciences Approves Proposals at Annual Meeting

On September 10, 2025, Roivant Sciences Ltd. held its Annual General Meeting of Shareholders, where all proposals on the agenda were approved. These included the re-election of Class I directors, the ratification of Ernst & Young LLP as the independent auditor, and a non-binding advisory vote on executive compensation. The meeting saw participation from holders of 628,673,675 common shares, reflecting strong shareholder engagement. The approval of these proposals is expected to reinforce Roivant’s governance structure and operational transparency, potentially enhancing its position in the biopharmaceutical industry.