ROCHE HOLDING AG-BR (RHO.DE) Stock Fundamental Analysis
FRA:RHO - Deutsche Boerse Ag - CH0012032113 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to RHO. RHO was compared to 53 industry peers in the Pharmaceuticals industry. RHO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
RHO had positive earnings in each of the past 5 years.
In the past 5 years RHO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.13%, RHO is doing good in the industry, outperforming 67.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.06%, RHO is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.12%, RHO belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
RHO had an Average Return On Invested Capital over the past 3 years of 23.72%. This is significantly above the industry average of 15.31%.
| 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 better Profit Margin (13.68%) than 66.04% of its industry peers.
RHO's Profit Margin has declined in the last couple of years.
RHO has a better Operating Margin (33.20%) than 84.91% 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 better Gross Margin (73.91%) than 60.38% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHO is creating value.
The number of shares outstanding for RHO has been reduced compared to 1 year ago.
Compared to 5 years ago, RHO has less shares outstanding
The debt/assets ratio for RHO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.01 indicates that RHO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.01, RHO is doing good in the industry, outperforming 66.04% of the companies in the same 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.
With an excellent Debt to FCF ratio value of 2.30, RHO belongs to the best of the industry, outperforming 81.13% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that RHO is somewhat dependend on debt financing.
RHO has a Debt to Equity ratio of 0.98. This is comparable to the rest of the industry: RHO outperforms 41.51% of its industry peers.
Even though the debt/equity ratio score it not favorable for RHO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 4.01 |
ROIC/WACC4.71
WACC4.7%
2.3 Liquidity
A Current Ratio of 1.48 indicates that RHO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, RHO is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that RHO should not have too much problems paying its short term obligations.
RHO's Quick ratio of 1.20 is fine compared to the rest of the industry. RHO outperforms 75.47% 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 1.24%.
Measured over the past years, RHO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.39% on average per year.
Looking at the last year, RHO shows a small growth in Revenue. The Revenue has grown by 3.03% in the last year.
Measured over the past years, RHO shows a decrease in Revenue. The Revenue has been decreasing by -0.32% on average per year.
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
Based on estimates for the next years, RHO will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
RHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y10.74%
EPS Next 2Y8.48%
EPS Next 3Y7.4%
EPS Next 5Y6.71%
Revenue Next Year4.26%
Revenue Next 2Y4.09%
Revenue Next 3Y3.73%
Revenue Next 5Y4.14%
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.
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
A Price/Earnings ratio of 15.38 indicates a correct valuation of RHO.
Compared to the rest of the industry, the Price/Earnings ratio of RHO indicates a somewhat cheap valuation: RHO is cheaper than 62.26% of the companies listed in the same industry.
RHO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.89, which indicates a correct valuation of RHO.
Based on the Price/Forward Earnings ratio, RHO is valued a bit cheaper than 62.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RHO to the average of the S&P500 Index (22.27), we can say RHO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RHO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHO indicates a somewhat cheap valuation: RHO is cheaper than 66.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.51 | ||
| EV/EBITDA | 10.23 |
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)1.43
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
RHO has a Yearly Dividend Yield of 3.62%. 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 3.06.
Compared to an average S&P500 Dividend Yield of 2.39, RHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 2Y8.48%
EPS Next 3Y7.4%
FRA:RHO (6/9/2025, 7:00:00 PM)
308.6
+2.6 (+0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap249.73B
Analysts69.63
Price Target340.35 (10.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend10.76
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)N/A
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 | 15.38 | ||
| Fwd PE | 13.89 | ||
| P/S | 3.87 | ||
| P/FCF | 15.51 | ||
| P/OCF | 11.64 | ||
| P/B | 7.37 | ||
| P/tB | 35.52 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)20.07
EY6.5%
EPS(NY)22.22
Fwd EY7.2%
FCF(TTM)19.9
FCFY6.45%
OCF(TTM)26.5
OCFY8.59%
SpS79.79
BVpS41.9
TBVpS8.69
PEG (NY)1.43
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 | 4.01 |
F-Score6
WACC4.7%
ROIC/WACC4.71
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 5Y6.71%
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 5Y4.14%
EBIT growth 1Y8.41%
EBIT growth 3Y2.72%
EBIT growth 5Y-0.14%
EBIT Next Year26.38%
EBIT Next 3Y10.93%
EBIT Next 5Y9.67%
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%