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Roche Holding AG (CH:ROG)
:ROG
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Roche Holding AG
(OTC:ROG)
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Rating:74Outperform
Price Target:
CHF297.00
â–²(12.03% Upside)
Roche Holding AG's overall stock score reflects a strong earnings call performance and solid financial health, particularly in cash flow management. While technical indicators are neutral and valuation is fair, the company's strategic focus on innovation and cost management supports a positive outlook despite some profitability challenges.
Positive Factors
Negative Factors
Roche Holding AG (ROG) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$212.29B
Dividend Yield3.66%
Average Volume (3M)985.26K
Price to Earnings (P/E)22.4
Beta (1Y)1.20
Revenue Growth4.77%
EPS Growth-11.07%
CountryCH
Employees103,249
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)11.08
Shares Outstanding702,562,700
10 Day Avg. Volume1,040,898
30 Day Avg. Volume985,258
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)6.41
Price to Sales (P/S)3.26
P/FCF Ratio13.50
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue5.00
Enterprise Value/Gross Profit6.80
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$261.32Price Target Upside-1.42% Downside
Rating ConsensusHold
Number of Analyst Covering11
Roche Holding AG Business Overview & Revenue Model
Company DescriptionRoche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company offers pharmaceutical products for treating oncology, neuroscience, infectious, immunology, cardiovascular and metabolism, ophthalmology, and respiratory, as well as anemia, cancer, dermatology, hemophilia, inflammatory and autoimmune, neurological, and transplantation. It also offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases. In addition, the company supplies diagnostic instruments and reagents. The company was founded in 1896 and is headquartered in Basel, Switzerland.
How the Company Makes MoneyRoche generates revenue primarily through the sale of prescription pharmaceuticals and diagnostic products. The Pharmaceuticals division is the largest contributor to revenue, with key products including monoclonal antibodies and targeted therapies that treat various cancers and chronic diseases. The Diagnostics division adds to the revenue through its extensive portfolio of laboratory instruments, reagents, and software solutions used in clinical diagnostics. Roche also benefits from strong partnerships with healthcare providers, research institutions, and collaborations with other biotech companies, enhancing its product offerings and market reach. Furthermore, the company invests heavily in R&D, which enables it to maintain a pipeline of innovative treatments that drive future revenue growth.
Roche Holding AG Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The call highlighted strong growth in pharmaceutical sales and robust pipeline development, particularly in oncology and neurology. However, challenges in the Diagnostics segment due to China's pricing reforms and mixed clinical trial results tempered the positive outlook. Additionally, regulatory setbacks and geopolitical uncertainties added caution.Q2-2025 Updates
Positive Updates
Strong Overall Growth
Group sales increased by 7%, driven by a 10% growth in Pharma, with core operating profit growing by 11% and core EPS by 12%.
Pharmaceutical Achievements
EU approval of Itovebi and U.S. approval of Susvimo. Significant progress in the oncology and neurology segments, with Xolair and Ocrevus showing strong momentum.
Pipeline Development
Four new medicines moved into Phase III trials, with plans for more advancements. Positive Phase II data for fenebrutinib in MS and promising Phase II data for prasi in Parkinson's.
Diagnostics Innovation
Launch of new products including sequencing solutions and the Accu-Chek SmartGuide. Notable advancements in mass spectrometry and pathology assays.
Negative Updates
Challenges in Diagnostics
Diagnostics sales were flat due to China healthcare pricing reforms, with a 26% decline in China sales.
Mixed Clinical Trial Results
The astegolimab program faced mixed results with one positive and one negative study.
Regulatory Setback
Received a CRL from the FDA for Columvi in second-line DLBCL, citing insufficient evidence for approval.
Tariff and Geopolitical Uncertainty
Potential risks related to U.S. tariffs and geopolitical issues, leading to a conservative approach in guidance.
Company Guidance
In the call, Roche provided comprehensive guidance on its financial and operational performance, highlighting several key metrics and strategic decisions. The Group reported a 7% increase in overall sales, driven by a strong 10% growth in the Pharmaceuticals division, with notable contributions from products like Phesgo and Xolair. Diagnostics, although flat overall due to China’s healthcare pricing reforms, would have grown by 6% without these reforms. Core operating profit increased by 11%, with a core operating margin up by 1.1 percentage points and core EPS growing 12%. The company updated its full-year guidance, lowering the LOE impact from CHF 1.2 billion to CHF 1 billion. Roche is also advancing its pipeline, with four medicines moving into Phase III and expectations for 8 to 11 more by year-end. Additionally, Roche is maintaining strong cost management, saving CHF 1 billion, aiming for CHF 3 billion in savings by 2030, and reallocating resources efficiently to support innovation and R&D excellence. Despite geopolitical uncertainties, Roche maintains a conservative approach to its guidance, emphasizing its track record of meeting or exceeding expectations.Roche Holding AG Financial Statement Overview
Summary
Roche Holding AG demonstrates solid financial health with strong cash flow generation and stable income statement metrics. However, the declining net profit margin and return on equity indicate potential pressures on profitability and efficiency. The balance sheet remains robust, with moderate leverage and improved equity financing. Overall, while the company faces some profitability challenges, its strong cash flow positions it well for future stability.Income Statement
Roche Holding AG's income statement shows a stable gross profit margin of approximately 74% for 2024. However, the net profit margin decreased from 19% in 2023 to 13% in 2024, indicating a reduction in profitability. Revenue growth was modest at 3.2% in 2024 compared to 2023, and EBIT margin also declined to 21.5% from 25.5% in 2023. EBITDA margin remains strong at 26.6% but has decreased from previous years. Overall, the company maintains strong profitability metrics, although there are signs of margin pressure.75
Positive
Balance Sheet
The balance sheet reflects a debt-to-equity ratio of 1.14 in 2024, indicating moderate leverage. Return on equity stands at 26%, which is a decline from 39% in 2023, suggesting reduced efficiency in using equity to generate profits. Equity ratio improved to 31.2% from 32.4% in 2023, indicating a slight improvement in asset financing through equity. While the company remains financially stable, the decline in ROE is a concern.70
Positive
Cash Flow
Roche's cash flow statement shows strong free cash flow generation with a growth rate of 31.8% in 2024. Operating cash flow to net income ratio is robust at 2.43, reflecting strong cash earnings relative to net income. Free cash flow to net income ratio also improved to 1.82, indicating efficient cash utilization. These metrics suggest excellent cash flow management despite the decline in net income.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.57B | 62.40B | 60.44B | 63.28B | 62.80B | 58.32B |
| Gross Profit | 34.25B | 46.11B | 44.08B | 44.44B | 43.10B | 41.97B |
| EBITDA | 12.50B | 16.62B | 18.41B | 20.80B | 22.19B | 22.97B |
| Net Income | 5.72B | 8.28B | 11.50B | 12.42B | 13.93B | 14.29B |
Balance Sheet | ||||||
| Total Assets | 94.77B | 101.80B | 90.47B | 88.15B | 92.32B | 86.14B |
| Cash, Cash Equivalents and Short-Term Investments | 12.03B | 17.32B | 10.51B | 9.77B | 13.03B | 12.33B |
| Total Debt | 34.63B | 36.35B | 30.78B | 26.54B | 32.55B | 15.41B |
| Total Liabilities | 61.72B | 65.64B | 57.20B | 56.14B | 63.97B | 46.37B |
| Stockholders Equity | 28.68B | 31.77B | 29.32B | 27.99B | 24.49B | 36.34B |
Cash Flow | ||||||
| Free Cash Flow | 12.59B | 15.09B | 11.45B | 13.34B | 16.02B | 11.47B |
| Operating Cash Flow | 15.23B | 20.09B | 16.09B | 17.89B | 20.57B | 18.16B |
| Investing Cash Flow | -6.91B | -11.39B | -10.64B | -3.57B | -6.55B | -9.08B |
| Financing Cash Flow | -8.28B | -6.82B | -4.24B | -15.72B | -12.70B | -9.24B |
Roche Holding AG Technical Analysis
Positive
265.10
Price Trends
259.36
Positive
261.09
Positive
265.34
Negative
Market Momentum
0.95
Positive
53.71
Neutral
31.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ROG, the sentiment is Positive. The current price of 265.1 is above the 20-day moving average (MA) of 264.46, above the 50-day MA of 259.36, and below the 200-day MA of 265.34, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ROG.
Roche Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 186.08B | 16.35 | 32.52% | 3.58% | 9.36% | -14.82% | |
74 Outperform | $212.29B | 22.38 | 31.98% | 3.66% | 4.77% | -11.07% | |
71 Outperform | 34.21B | 104.22 | 2.97% | 0.10% | 6.22% | 0.00% | |
69 Neutral | 37.11B | 51.26 | 6.82% | 0.74% | 5.93% | 29.83% | |
66 Neutral | 30.62B | 32.36 | 4.72% | 0.46% | 1.60% | -4.40% | |
54 Neutral | 20.97B | 106.31 | 0.01% | 1.26% | 0.00% | 0.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
CH:ROG
Roche Holding AG
265.10
4.91
1.89%
CH:NOVN
Novartis AG
97.77
2.24
2.34%
CH:LONN
Lonza Group Ltd
543.20
12.31
2.32%
ALC
Alcon
77.25
-20.37
-20.87%
SDZXF
Sandoz Group Ltd
60.02
18.54
44.70%
CH:GALD
Galderma Group AG
144.00
62.35
76.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.