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Laboratorios Farmaceuticos Rovi
(BME:ROVI)
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Rating:70Outperform
Price Target:
€64.00
▲(5.79% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by strong financial fundamentals (high margins, debt-free balance sheet, and improving free cash flow). This is tempered by mixed earnings-call signals—CDMO and margin progress offset by weaker underlying profitability (excluding one-offs) and rising cost pressures—plus a mixed technical backdrop (negative MACD and price below longer-term averages) and a valuation that looks relatively full at ~27x earnings with a modest yield.
Positive Factors
CDMO expansion
Rapid CDMO growth and a baseline supply agreement support higher capacity utilization and recurring manufacturing revenue. Phoenix and restored Madrid capacity also broaden ROVI’s industrial footprint and can improve fixed-cost absorption.
Negative Factors
Underlying profitability pressure
Reported earnings were materially supported by a nonrecurring acquisition gain, while underlying operating profit declined. Rapid SG&A and R&D increases could keep margins under pressure until Phoenix integration, scale benefits and pipeline investments mature.
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Positive Factors
Negative Factors
CDMO expansion
Rapid CDMO growth and a baseline supply agreement support higher capacity utilization and recurring manufacturing revenue. Phoenix and restored Madrid capacity also broaden ROVI’s industrial footprint and can improve fixed-cost absorption.
Read all positive factors
Laboratorios Farmaceuticos Rovi (ROVI) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€3.00B
Dividend Yield1.31%
Average Volume (3M)100.61K
Price to Earnings (P/E)16.4
Beta (1Y)0.59
Revenue Growth3.21%
EPS Growth39.34%
CountryES
Employees2,470
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)3.62
Shares Outstanding51,235,764
10 Day Avg. Volume98,624
30 Day Avg. Volume100,607
Financial Highlights & Ratios
PEG Ratio7.71
Price to Book (P/B)4.89
Price to Sales (P/S)4.37
P/FCF Ratio27.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.61
Revenue Forecast (FY)€773.76M
Laboratorios Farmaceuticos Rovi Business Overview & Revenue Model
Company Description
Laboratorios Farmaceuticos Rovi, S.A. is a pharmaceutical company that focuses on researching, developing, manufacturing, and commercializing medicinal products. Its operations span Spain, the European Union, OECD nations, and global markets. The ...
How the Company Makes Money
ROVI generates revenue primarily through two broad streams: (1) selling pharmaceutical products and (2) providing contract manufacturing/services to other pharmaceutical companies. On the product side, the company earns money by commercializing pr...
Laboratorios Farmaceuticos Rovi Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong operational and financial positives (double‑digit revenue growth, 38% CDMO growth, improved gross margins, strong cash generation, strategic Phoenix acquisition and clinical progress) alongside material caveats: much of the headline profit uplift was driven by a one‑off EUR 62.4 million badwill, underlying EBITDA and EBIT declined year‑on‑year, SG&A and R&D rose sharply, and the heparin franchise still faces year‑on‑year declines despite recent Q2 improvement. Management maintained cautious full‑year guidance and flagged regulatory and contract timing risks. Overall the results show meaningful momentum in CDMO, cash flow and product development, but underlying operational profitability and cost pressures temper the outlook.Positive Updates
Total Revenue Growth
Total revenue increased 13% year‑on‑year to EUR 357.0 million in H1 2026; operating revenue rose 9% to EUR 344.2 million, driven mainly by CDMO strength.
Negative Updates
Underlying Profitability Weakness Excluding Badwill
EBITDA rose 85% to EUR 121.2 million, but excluding the EUR 62.4 million badwill EBITDA decreased 10% to EUR 58.8 million; EBIT excluding badwill fell 20% to EUR 40.9 million, indicating weaker underlying operating profitability.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Growth
Total revenue increased 13% year‑on‑year to EUR 357.0 million in H1 2026; operating revenue rose 9% to EUR 344.2 million, driven mainly by CDMO strength.
Read all positive updates
Company Guidance
ROVI reiterated its 2026 guidance, continuing to expect operating revenue to increase by a low- to mid‑single‑digit percentage versus 2025; it also narrowed its heparin outlook, now forecasting low‑molecular‑weight heparins to decline by a mid‑single‑digit percentage (improved from a prior high‑single‑digit decline) while bemiparin is expected to grow by a low single‑digit percentage in 2026 after a strong Q2 recovery (H1 bemiparin sales EUR 46.7m, enoxaparin biosimilar EUR 78.6m, total heparin sales EUR 130.1m, ~38% of operating revenue). The company confirmed continued CDMO expansion after CDMO revenue rose 38% to EUR 106.3m in H1 (Phoenix contributed ~EUR 13.8m and the BMS supply agreement provides a baseline ~USD 50m p.a.), expects SG&A (excluding Phoenix) to increase mid‑ to high‑single‑digits, is maintaining its investment plan (H1 CapEx EUR 30.4m), and highlighted ongoing growth drivers such as Okedi (H1 sales EUR 34m, +27% y/y) and ISM clinical progress.Laboratorios Farmaceuticos Rovi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 773.05M | 743.48M | 763.75M | 829.51M | 817.70M | 648.68M |
| Gross Profit | 494.93M | 451.65M | 478.35M | 483.34M | 519.61M | 384.82M |
| EBITDA | 266.12M | 203.52M | 207.69M | 245.81M | 281.49M | 204.72M |
| Net Income | 185.18M | 140.44M | 136.88M | 170.34M | 199.67M | 153.08M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 955.69M | 832.02M | 799.88M | 878.70M | 732.68M |
| Cash, Cash Equivalents and Short-Term Investments | 128.07M | 97.98M | 27.41M | 25.32M | 124.94M | 99.03M |
| Total Debt | 107.69M | 121.72M | 114.41M | 65.43M | 72.14M | 73.14M |
| Total Liabilities | 409.97M | 276.79M | 250.48M | 256.39M | 357.32M | 261.70M |
| Stockholders Equity | 700.62M | 664.41M | 572.03M | 539.39M | 520.01M | 470.98M |
Cash Flow | ||||||
| Free Cash Flow | 176.78M | 120.16M | 76.06M | 58.06M | 186.21M | 108.50M |
| Operating Cash Flow | 252.69M | 185.37M | 138.28M | 113.25M | 237.60M | 149.44M |
| Investing Cash Flow | -97.27M | -67.56M | -81.06M | -52.03M | -57.15M | -40.84M |
| Financing Cash Flow | -72.63M | -47.02M | -55.36M | -160.84M | -154.54M | -62.73M |
Laboratorios Farmaceuticos Rovi Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €3.00B | 16.38 | 27.84% | 1.31% | 3.21% | 39.34% | |
69 Neutral | €1.48B | 25.57 | 23.64% | 1.20% | 15.52% | 34.76% | |
66 Neutral | €2.27B | 31.45 | 4.78% | 1.77% | 9.67% | 174.00% | |
60 Neutral | €5.90B | 14.77 | 8.43% | 0.83% | -0.33% | 51.93% | |
58 Neutral | €1.41B | 10.38 | 18.19% | 2.83% | 31.88% | -20.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | €223.95M | 32.11 | 3.14% | 0.71% | -0.42% | 4.56% |
* General Sector Average
ES:ROVI
Laboratorios Farmaceuticos Rovi
59.30
0.23
0.39%
ES:ALM
Almirall
10.42
-0.65
-5.90%
ES:FAE
Faes Farma
4.52
0.31
7.45%
ES:GRF
Grifols
9.89
-2.42
-19.67%
ES:RJF
LABORATORIO REIG JOFRE
2.72
-0.13
-4.49%
ES:PHM
Pharma Mar SA
83.45
-3.44
-3.96%
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.