ROCHE HOLDING AG-BR (RHO.DE) Stock Fundamental Analysis
FRA:RHO - Deutsche Boerse Ag - CH0012032113 - Common Stock - Currency: EUR
Taking everything into account, RHO scores 6 out of 10 in our fundamental rating. RHO was compared to 53 industry peers in the Pharmaceuticals industry. RHO gets an excellent profitability rating and is at the same time showing great financial health properties. RHO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RHO had positive earnings in the past year.
RHO had a positive operating cash flow in the past year.
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 Return On Assets of 8.13%. This is in the better half of the industry: RHO outperforms 73.08% of its industry peers.
The Return On Equity of RHO (26.06%) is better than 75.00% of its industry peers.
RHO has a better Return On Invested Capital (22.12%) than 88.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHO is significantly above the industry average of 15.20%.
| 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
RHO has a Profit Margin of 13.68%. This is in the better half of the industry: RHO outperforms 61.54% of its industry peers.
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 86.54% of its industry peers.
In the last couple of years the Operating Margin of RHO has remained more or less at the same level.
RHO has a Gross Margin of 73.91%. This is in the better half of the industry: RHO outperforms 65.38% of its industry peers.
RHO's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, RHO has less shares outstanding
RHO has a worse debt/assets ratio than last year.
2.2 Solvency
RHO has an Altman-Z score of 3.94. This indicates that RHO is financially healthy and has little risk of bankruptcy at the moment.
RHO has a Altman-Z score of 3.94. This is comparable to the rest of the industry: RHO outperforms 57.69% of its industry peers.
The Debt to FCF ratio of RHO is 2.30, which is a good value as it means it would take RHO, 2.30 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.30, RHO belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
RHO has a Debt/Equity ratio of 0.98. This is a neutral value indicating RHO is somewhat dependend on debt financing.
RHO's Debt to Equity ratio of 0.98 is in line compared to the rest of the industry. RHO outperforms 40.38% of its industry peers.
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 | 3.94 |
ROIC/WACC4.64
WACC4.77%
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.
RHO has a Current ratio of 1.48. This is in the better half of the industry: RHO outperforms 63.46% of its industry peers.
A Quick Ratio of 1.20 indicates that RHO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, RHO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.24% over the past year.
RHO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.39% yearly.
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)1.24%
EPS 3Y-1.73%
EPS 5Y-1.39%
EPS Q2Q%1.18%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y-1.24%
Revenue growth 5Y-0.32%
Sales Q2Q%5.91%
3.2 Future
RHO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
Based on estimates for the next years, RHO will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y10.74%
EPS Next 2Y8.48%
EPS Next 3Y7.4%
EPS Next 5Y6.37%
Revenue Next Year4.26%
Revenue Next 2Y4.09%
Revenue Next 3Y3.73%
Revenue Next 5Y3.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.60, the valuation of RHO can be described as correct.
65.38% of the companies in the same industry are more expensive than RHO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.04, RHO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.18, the valuation of RHO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RHO indicates a somewhat cheap valuation: RHO is cheaper than 67.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RHO to the average of the S&P500 Index (37.64), we can say RHO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHO is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHO indicates a somewhat cheap valuation: RHO is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.72 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RHO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
RHO has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
RHO's Dividend Yield is a higher than the industry average which is at 3.00.
RHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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.
The dividend of RHO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.17%
EPS Next 2Y8.48%
EPS Next 3Y7.4%
FRA:RHO (7/25/2025, 7:00:00 PM)
293.8
-5.6 (-1.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners37.15%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap237.76B
Analysts71.11
Price Target339.35 (15.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend10.81
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)-0.29%
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.18 | ||
| P/S | 3.67 | ||
| P/FCF | 14.72 | ||
| P/OCF | 11.05 | ||
| P/B | 6.99 | ||
| P/tB | 33.71 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)20.13
EY6.85%
EPS(NY)22.29
Fwd EY7.59%
FCF(TTM)19.96
FCFY6.79%
OCF(TTM)26.58
OCFY9.05%
SpS80.03
BVpS42.02
TBVpS8.72
PEG (NY)1.36
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 | 3.94 |
F-Score6
WACC4.77%
ROIC/WACC4.64
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)1.24%
EPS 3Y-1.73%
EPS 5Y-1.39%
EPS Q2Q%1.18%
EPS Next Y10.74%
EPS Next 2Y8.48%
EPS Next 3Y7.4%
EPS Next 5Y6.37%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y-1.24%
Revenue growth 5Y-0.32%
Sales Q2Q%5.91%
Revenue Next Year4.26%
Revenue Next 2Y4.09%
Revenue Next 3Y3.73%
Revenue Next 5Y3.81%
EBIT growth 1Y8.41%
EBIT growth 3Y2.72%
EBIT growth 5Y-0.14%
EBIT Next Year26.38%
EBIT Next 3Y10.93%
EBIT Next 5Y9.32%
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%