ROCHE HOLDING AG-BR (RHO.DE) Stock Fundamental Analysis
Europe - FRA:RHO - CH0012032113 - Common Stock
284.4 EUR
-2 (-0.7%)
Taking everything into account, RHO scores 6 out of 10 in our fundamental rating. RHO was compared to 51 industry peers in the Pharmaceuticals industry. RHO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RHO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RHO was profitable.
In the past year RHO had a positive cash flow from operations.
Each year in the past 5 years RHO has been profitable.
RHO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RHO has a better Return On Assets (8.13%) than 70.59% of its industry peers.
RHO has a Return On Equity of 26.06%. This is in the better half of the industry: RHO outperforms 78.43% of its industry peers.
RHO's Return On Invested Capital of 22.12% is amongst the best of the industry. RHO outperforms 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHO is significantly above the industry average of 15.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 26.06% | ||
| ROIC | 22.12% |
ROA(3y)11.64%
ROA(5y)13.32%
ROE(3y)36.55%
ROE(5y)41.17%
ROIC(3y)23.72%
ROIC(5y)23.71%
1.3 Margins
With a decent Profit Margin value of 13.68%, RHO is doing good in the industry, outperforming 62.75% of the companies in the same industry.
In the last couple of years the Profit Margin of RHO has declined.
RHO's Operating Margin of 33.20% is amongst the best of the industry. RHO outperforms 84.31% of its industry peers.
RHO's Operating Margin has been stable in the last couple of years.
The Gross Margin of RHO (73.91%) is better than 68.63% of its industry peers.
In the last couple of years the Gross Margin of RHO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.2% | ||
| PM (TTM) | 13.68% | ||
| GM | 73.91% |
OM growth 3Y4.01%
OM growth 5Y0.18%
PM growth 3Y-14.88%
PM growth 5Y-9.03%
GM growth 3Y2.22%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
RHO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RHO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RHO has been reduced compared to 5 years ago.
Compared to 1 year ago, RHO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.84 indicates that RHO is not in any danger for bankruptcy at the moment.
The Altman-Z score of RHO (3.84) is comparable to the rest of the industry.
RHO has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as RHO would need 2.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.30, RHO belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that RHO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, RHO is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
Although RHO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.84 |
ROIC/WACC4.67
WACC4.74%
2.3 Liquidity
RHO has a Current Ratio of 1.48. This is a normal value and indicates that RHO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RHO (1.48) is better than 62.75% of its industry peers.
RHO has a Quick Ratio of 1.20. This is a normal value and indicates that RHO is financially healthy and should not expect problems in meeting its short term obligations.
RHO has a Quick ratio of 1.20. This is in the better half of the industry: RHO outperforms 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
RHO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.19%.
The Earnings Per Share has been decreasing by -1.39% on average over the past years.
The Revenue has been growing slightly by 3.03% in the past year.
RHO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.32% yearly.
EPS 1Y (TTM)5.19%
EPS 3Y-1.73%
EPS 5Y-1.39%
EPS Q2Q%8.5%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y-1.24%
Revenue growth 5Y-0.32%
Sales Q2Q%3.67%
3.2 Future
RHO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.20% yearly.
Based on estimates for the next years, RHO will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y6.05%
EPS Next 2Y5.52%
EPS Next 3Y5.64%
EPS Next 5Y6.2%
Revenue Next Year2.73%
Revenue Next 2Y3.02%
Revenue Next 3Y3.11%
Revenue Next 5Y3.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.49, RHO is valued correctly.
Based on the Price/Earnings ratio, RHO is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
RHO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
Based on the Price/Forward Earnings ratio of 12.68, the valuation of RHO can be described as correct.
Based on the Price/Forward Earnings ratio, RHO is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, RHO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
74.51% of the companies in the same industry are more expensive than RHO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RHO does not grow enough to justify the current Price/Earnings ratio.
RHO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y5.52%
EPS Next 3Y5.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, RHO has a reasonable but not impressive dividend return.
RHO's Dividend Yield is a higher than the industry average which is at 3.03.
Compared to an average S&P500 Dividend Yield of 2.41, RHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of RHO has a limited annual growth rate of 2.37%.
Dividend Growth(5Y)2.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
97.17% of the earnings are spent on dividend by RHO. This is not a sustainable payout ratio.
RHO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.17%
EPS Next 2Y5.52%
EPS Next 3Y5.64%
FRA:RHO (9/26/2025, 7:00:00 PM)
284.4
-2 (-0.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners40.11%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap230.15B
Analysts70.77
Price Target341.34 (20.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend10.82
Dividend Growth(5Y)2.37%
DP97.17%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.16%
PT rev (3m)0.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-4.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.68 | ||
| P/S | 3.55 | ||
| P/FCF | 14.24 | ||
| P/OCF | 10.69 | ||
| P/B | 6.76 | ||
| P/tB | 32.6 | ||
| EV/EBITDA | 9.41 |
EPS(TTM)21.08
EY7.41%
EPS(NY)22.43
Fwd EY7.89%
FCF(TTM)19.98
FCFY7.02%
OCF(TTM)26.61
OCFY9.36%
SpS80.11
BVpS42.06
TBVpS8.72
PEG (NY)2.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 26.06% | ||
| ROCE | 26.86% | ||
| ROIC | 22.12% | ||
| ROICexc | 28.73% | ||
| ROICexgc | 50.83% | ||
| OM | 33.2% | ||
| PM (TTM) | 13.68% | ||
| GM | 73.91% | ||
| FCFM | 24.94% |
ROA(3y)11.64%
ROA(5y)13.32%
ROE(3y)36.55%
ROE(5y)41.17%
ROIC(3y)23.72%
ROIC(5y)23.71%
ROICexc(3y)28.94%
ROICexc(5y)29.11%
ROICexgc(3y)49.53%
ROICexgc(5y)49.86%
ROCE(3y)29.26%
ROCE(5y)30.68%
ROICexcg growth 3Y2.54%
ROICexcg growth 5Y-3.21%
ROICexc growth 3Y1.27%
ROICexc growth 5Y-3.5%
OM growth 3Y4.01%
OM growth 5Y0.18%
PM growth 3Y-14.88%
PM growth 5Y-9.03%
GM growth 3Y2.22%
GM growth 5Y0.6%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 146.33% | ||
| Cap/Sales | 8.28% | ||
| Interest Coverage | 17.54 | ||
| Cash Conversion | 85.47% | ||
| Profit Quality | 182.25% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.84 |
F-Score6
WACC4.74%
ROIC/WACC4.67
Cap/Depr(3y)132.99%
Cap/Depr(5y)129.62%
Cap/Sales(3y)7.8%
Cap/Sales(5y)8.42%
Profit Quality(3y)129.49%
Profit Quality(5y)117.9%
High Growth Momentum
Growth
EPS 1Y (TTM)5.19%
EPS 3Y-1.73%
EPS 5Y-1.39%
EPS Q2Q%8.5%
EPS Next Y6.05%
EPS Next 2Y5.52%
EPS Next 3Y5.64%
EPS Next 5Y6.2%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y-1.24%
Revenue growth 5Y-0.32%
Sales Q2Q%3.67%
Revenue Next Year2.73%
Revenue Next 2Y3.02%
Revenue Next 3Y3.11%
Revenue Next 5Y3.69%
EBIT growth 1Y8.41%
EBIT growth 3Y2.72%
EBIT growth 5Y-0.14%
EBIT Next Year25.3%
EBIT Next 3Y10.44%
EBIT Next 5Y10.12%
FCF growth 1Y31.79%
FCF growth 3Y-2.8%
FCF growth 5Y-2.91%
OCF growth 1Y24.85%
OCF growth 3Y-1.42%
OCF growth 5Y-2.14%