Roivant Sciences (ROIV) AI Stock Analysis

• Market Cap: $10.27B
• Dividend Yield: N/A
• Average Volume (3M): 7.51M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.99
• Revenue Growth: -85.32%
• EPS Growth: -111.82%
• Country: US
• Employees: 908
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 682,881,700
• 10 Day Avg. Volume: 11,190,962
• 30 Day Avg. Volume: 7,511,999
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 160.61
• Enterprise Value/Gross Profit: 177.70
• Enterprise Value/Ebitda: -3.80
• 1Y Price Target: $20.31
• Price Target Upside: 35.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $13.00 ▼(-13.56% Downside)

Roivant Sciences' overall stock score is driven by a strong technical outlook and positive earnings call sentiment, reflecting strategic advancements and a robust financial position. However, financial performance and valuation remain weak due to ongoing losses and negative cash flows, typical challenges in the biotechnology sector.

Positive Factors

Strong Financial Position

A strong cash position and no debt provide Roivant with significant financial flexibility to invest in R&D and strategic initiatives, supporting long-term growth.

Pipeline Progress

Advancements in the pipeline, especially in registrational trials, indicate potential future revenue streams and strengthen Roivant's competitive position in the biotech sector.

Promising Study Results

Promising results from Immunovant's study on Graves’ Disease suggest potential breakthroughs in treatment, enhancing Roivant's reputation and market potential in the biotech industry.

Negative Factors

Declining Revenue Growth

A sharp decline in revenue growth reflects challenges in monetizing products, which may hinder Roivant's ability to sustain operations and invest in future projects.

Negative Cash Flows

Negative cash flows indicate ongoing operational cash burn, which can strain resources and limit Roivant's capacity to fund future development and expansion efforts.

Ongoing Litigation

Litigation can be costly and time-consuming, potentially diverting resources away from R&D and strategic initiatives, impacting Roivant's long-term operational focus.

Roivant Sciences Business Overview & Revenue Model

Company Description

Roivant Sciences (ROIV) is a biopharmaceutical company focused on the development and commercialization of innovative therapies across a range of therapeutic areas including oncology, neurology, and rare diseases. The company operates through a unique business model that aims to create and advance a portfolio of drug development programs by leveraging technology and strategic partnerships. Roivant is known for its 'Vant' subsidiaries, which are dedicated to specific disease areas or therapeutic modalities, thereby streamlining the drug development process and fostering innovation.

How the Company Makes Money

Roivant Sciences generates revenue primarily through the development and commercialization of pharmaceutical products. The company makes money from several key revenue streams, including milestone payments from collaborations with pharmaceutical companies, royalties on product sales from its subsidiaries, and potential revenues from licensing agreements. Roivant often partners with larger pharmaceutical companies to co-develop drugs, which can provide upfront payments and shared profits. Additionally, the company may receive funding from investors and venture capitalists to support its research and development activities, further contributing to its financial resources.

Roivant Sciences Financial Statement Overview

Summary

Roivant Sciences faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the company maintains a strong equity base and low leverage, its negative cash flows and profitability metrics highlight the need for strategic improvements.

Income Statement

Roivant Sciences shows significant volatility in its income statement metrics. The company has experienced a sharp decline in revenue growth, with a TTM revenue growth rate of -69.51%. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating ongoing losses. The gross profit margin remains high at 92.05% TTM, suggesting efficient cost management, but overall profitability is severely impacted by high operating expenses.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.021 TTM, indicating low leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly provided, but the company's substantial equity base suggests a strong capital structure. Despite low leverage, the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is somewhat aligned with net income, albeit both are negative. The free cash flow growth rate is positive at 1.73% TTM, but the overall cash flow position remains weak, reflecting ongoing operational cash burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.23M	29.05M	124.80M	61.28M	55.29M	23.80M
Gross Profit	21.00M	28.14M	96.83M	48.15M	46.32M	21.74M
EBITDA	-981.34M	-674.26M	4.31B	-1.18B	-916.71M	-895.74M
Net Income	-490.63M	-171.98M	4.35B	-1.01B	-845.26M	-809.23M
Balance Sheet
Total Assets	5.03B	5.44B	7.22B	2.39B	2.59B	2.69B
Cash, Cash Equivalents and Short-Term Investments	4.50B	4.89B	6.54B	1.68B	2.06B	2.13B
Total Debt	99.69M	100.17M	499.75M	481.40M	283.89M	244.98M
Total Liabilities	216.70M	249.74M	773.95M	782.02M	523.70M	527.69M
Stockholders Equity	4.35B	4.69B	5.97B	1.16B	1.66B	1.80B
Cash Flow
Free Cash Flow	-858.67M	-844.05M	-766.65M	-856.08M	-695.16M	-557.94M
Operating Cash Flow	-851.00M	-839.45M	-765.27M	-843.39M	-677.73M	-552.14M
Investing Cash Flow	-2.85B	-1.77B	5.20B	-44.27M	303.30M	-31.70M
Financing Cash Flow	-746.95M	-1.22B	419.36M	499.46M	306.79M	456.26M

Roivant Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROIV, the sentiment is Positive. The current price of 15.04 is above the 20-day moving average (MA) of 13.20, above the 50-day MA of 12.21, and above the 200-day MA of 11.30, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 76.96 is Negative, neither overbought nor oversold. The STOCH value of 72.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROIV.

Roivant Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	79 Outperform	9.10B	17.77	167.48%	―	34.97%	71.10%
CORT	76 Outperform	8.48B	71.66	20.84%	―	25.71%	4.48%
VRNA	68 Neutral	9.12B	-102.91	0.00%	―	0.00%	34.29%
JAZZ	64 Neutral	7.78B	-19.02	-10.92%	―	4.52%	-205.13%
TECH	64 Neutral	8.27B	115.72	3.83%	0.60%	5.23%	-56.70%
ROIV	61 Neutral	$10.27B	1.93	-15.84%	―	-85.32%	-111.82%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Roivant Sciences Corporate Events

Roivant Sciences Announces Promising Study Results

On September 3, 2025, Roivant Sciences announced promising results from a proof-of-concept study conducted by its subsidiary, Immunovant, on the treatment of uncontrolled Graves’ Disease using batoclimab. The study revealed that approximately 80% of patients maintained normal thyroid function six months after treatment, with around 50% achieving remission without anti-thyroid drugs. These findings suggest a potential shift in the treatment paradigm for Graves’ Disease, with two registrational trials for IMVT-1402 currently enrolling and results expected in 2027.

Roivant Sciences Announces $500M Share Repurchase Program

Roivant Sciences Ltd. has announced a new common share repurchase program on June 24, 2025, allowing for the repurchase of up to $500 million of its common shares. This initiative follows a previous $1.5 billion repurchase program from April 2024, which has been fully utilized. The repurchase will be funded with available cash, with no set expiration date, and will depend on market conditions and other factors.