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. Both the health and profitability get an excellent rating, making RHO a very profitable company, without any liquidiy or solvency issues. RHO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RHO had positive earnings in the past year.
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
The Return On Assets of RHO (8.13%) is better than 67.92% of its industry peers.
With a decent Return On Equity value of 26.06%, RHO is doing good in the industry, outperforming 69.81% of the companies in the same industry.
RHO has a better Return On Invested Capital (22.12%) than 88.68% of its industry peers.
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
Looking at the Profit Margin, with a value of 13.68%, RHO is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
In the last couple of years the Profit Margin of RHO has declined.
The Operating Margin of RHO (33.20%) is better 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 Gross Margin of 73.91%. This is in the better half of the industry: RHO outperforms 60.38% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHO is creating value.
RHO has less shares outstanding than it did 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 3.99 indicates that RHO is not in any danger for bankruptcy at the moment.
RHO has a Altman-Z score of 3.99. This is in the better half of the industry: RHO outperforms 66.04% of its industry peers.
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.
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 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 | 3.99 |
ROIC/WACC4.7
WACC4.71%
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 64.15% of its industry peers.
A Quick Ratio of 1.20 indicates that RHO should not have too much problems paying its short term obligations.
The Quick ratio of RHO (1.20) is better than 75.47% of its industry peers.
| 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.
RHO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.03%.
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.
Based on estimates for the next years, RHO will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
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.
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 15.24, the valuation of RHO can be described as correct.
Based on the Price/Earnings ratio, RHO is valued a bit cheaper than 62.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of RHO to the average of the S&P500 Index (26.31), we can say RHO is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.76 indicates a correct valuation of RHO.
Based on the Price/Forward Earnings ratio, RHO is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
RHO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
RHO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RHO is valued a bit cheaper than the industry average as 66.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
RHO's 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)1.42
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, RHO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.95, RHO pays a bit more dividend than its industry peers.
RHO's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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 (6/13/2025, 7:00:00 PM)
306.2
-2.2 (-0.71%)
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 Cap247.79B
Analysts69.63
Price Target340.35 (11.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend10.79
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)-1.5%
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 | 15.24 | ||
| Fwd PE | 13.76 | ||
| P/S | 3.83 | ||
| P/FCF | 15.37 | ||
| P/OCF | 11.54 | ||
| P/B | 7.3 | ||
| P/tB | 35.2 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)20.09
EY6.56%
EPS(NY)22.25
Fwd EY7.27%
FCF(TTM)19.92
FCFY6.5%
OCF(TTM)26.53
OCFY8.66%
SpS79.87
BVpS41.94
TBVpS8.7
PEG (NY)1.42
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 | 3.99 |
F-Score6
WACC4.71%
ROIC/WACC4.7
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%