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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past 5 years RHO always reported a positive cash flow from operatings.
1.2 Ratios
RHO has a better Return On Assets (8.13%) than 73.58% of its industry peers.
RHO's Return On Equity of 26.06% is fine compared to the rest of the industry. RHO outperforms 75.47% of its industry peers.
RHO's Return On Invested Capital of 22.12% is amongst the best of the industry. RHO outperforms 88.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHO is significantly above the industry average of 14.71%.
| 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 62.26% of the companies in the same industry.
In the last couple of years the Profit Margin of RHO has declined.
RHO has a better Operating Margin (33.20%) than 83.02% of its industry peers.
In the last couple of years the Operating Margin of RHO has remained more or less at the same level.
The Gross Margin of RHO (73.91%) is better than 64.15% 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
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
RHO has an Altman-Z score of 3.91. This indicates that RHO is financially healthy and has little risk of bankruptcy at the moment.
RHO has a Altman-Z score of 3.91. This is in the better half of the industry: RHO outperforms 62.26% 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 has a worse Debt to Equity ratio (0.98) than 62.26% 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 | 3.91 |
ROIC/WACC4.63
WACC4.78%
2.3 Liquidity
A Current Ratio of 1.48 indicates that RHO should not have too much problems paying its short term obligations.
RHO's Current ratio of 1.48 is fine compared to the rest of the industry. RHO outperforms 64.15% 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.
Looking at the Quick ratio, with a value of 1.20, RHO is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
| 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%.
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)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 6.37% on average per year.
The Revenue is expected to grow by 3.81% on average over the next years.
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.
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 14.60, RHO is valued correctly.
Based on the Price/Earnings ratio, RHO is valued a bit cheaper than 60.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.61, RHO is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.18 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.
The average S&P500 Price/Forward Earnings ratio is at 37.13. RHO is valued rather cheaply when compared to this.
| 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 60.38% of the companies in the same industry.
71.70% 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 | 14.73 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
RHO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RHO 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.
Compared to an average industry Dividend Yield of 3.03, RHO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, RHO pays a better dividend.
| 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
RHO pays out 97.17% of its income as dividend. 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 (7/30/2025, 7:00:00 PM)
295
-1 (-0.34%)
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 Cap238.73B
Analysts71.11
Price Target339.35 (15.03%)
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)-0.1%
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 | 14.73 | ||
| P/OCF | 11.05 | ||
| P/B | 6.99 | ||
| P/tB | 33.72 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)20.2
EY6.85%
EPS(NY)22.37
Fwd EY7.58%
FCF(TTM)20.03
FCFY6.79%
OCF(TTM)26.69
OCFY9.05%
SpS80.34
BVpS42.19
TBVpS8.75
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 | 3.91 |
F-Score6
WACC4.78%
ROIC/WACC4.63
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%