ROCHE HOLDING AG-BR (RHO.DE) Stock Fundamental Analysis
FRA:RHO - Deutsche Boerse Ag - CH0012032113 - Common Stock - Currency: EUR
RHO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 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 on the other hand it scores bad on growth.
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.
In the past 5 years RHO has always been profitable.
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.
RHO has a Return On Equity of 26.06%. This is in the better half of the industry: RHO outperforms 69.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.12%, RHO belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RHO 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's Profit Margin of 13.68% is fine compared to the rest of the industry. RHO outperforms 66.04% of its industry peers.
In the last couple of years the Profit Margin of RHO has declined.
Looking at the Operating Margin, with a value of 33.20%, RHO belongs to the top of the industry, outperforming 84.91% of the companies in the same industry.
In the last couple of years the Operating Margin of RHO has remained more or less at the same level.
RHO's Gross Margin of 73.91% is fine compared to the rest 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
RHO has a worse debt/assets ratio than last year.
2.2 Solvency
RHO has an Altman-Z score of 4.00. This indicates that RHO is financially healthy and has little risk of bankruptcy at the moment.
RHO's Altman-Z score of 4.00 is fine compared to the rest 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.
RHO has a Debt to FCF ratio of 2.30. This is amongst the best in the industry. RHO outperforms 81.13% of its industry peers.
RHO has a Debt/Equity ratio of 0.98. This is a neutral value indicating RHO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, RHO perfoms like the industry average, outperforming 41.51% of the companies in the same industry.
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 |
ROIC/WACC4.71
WACC4.7%
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 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.
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
The Earnings Per Share has been growing slightly by 1.24% over the past year.
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.
The Revenue has been growing slightly by 3.03% in the past year.
The Revenue has been decreasing by -0.32% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.71% on average over the next years.
The Revenue is expected to grow by 4.14% on average over the next years.
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
Based on the Price/Earnings ratio of 15.33, the valuation of RHO can be described as correct.
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 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.84 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, RHO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHO is on the same level as its industry peers.
66.04% 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 | 15.46 | ||
| EV/EBITDA | 10.2 |
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)1.43
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, RHO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.06, RHO pays a bit more dividend than its industry peers.
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
RHO pays out 97.17% of its income as dividend. 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 (6/11/2025, 7:00:00 PM)
306.4
-0.2 (-0.07%)
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 Cap247.95B
Analysts69.63
Price Target340.35 (11.08%)
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 | 15.33 | ||
| Fwd PE | 13.84 | ||
| P/S | 3.85 | ||
| P/FCF | 15.46 | ||
| P/OCF | 11.61 | ||
| P/B | 7.34 | ||
| P/tB | 35.4 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)19.99
EY6.52%
EPS(NY)22.14
Fwd EY7.22%
FCF(TTM)19.82
FCFY6.47%
OCF(TTM)26.4
OCFY8.62%
SpS79.48
BVpS41.74
TBVpS8.66
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 |
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%