Roche Holding AG
Roche Holding AG Fundamental Analysis
Roche Holding AG (RHHBY) shows moderate financial fundamentals with a PE ratio of 32.33, profit margin of 19.74%, and ROE of 29.21%. The company generates $46.4B in annual revenue with moderate year-over-year growth of 3.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RHHBY's fundamental strength across five key dimensions:
Efficiency Score
WeakRHHBY struggles to generate sufficient returns from assets.
Valuation Score
ModerateRHHBY shows balanced valuation metrics.
Growth Score
WeakRHHBY faces weak or negative growth trends.
Financial Health Score
ExcellentRHHBY maintains a strong and stable balance sheet.
Profitability Score
ExcellentRHHBY achieves industry-leading margins.
Key Financial Metrics
Is RHHBY Expensive or Cheap?
P/E Ratio
RHHBY trades at 32.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RHHBY's PEG of 0.71 indicates potential undervaluation.
Price to Book
The market values Roche Holding AG at 8.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.44 times EBITDA. This signals the market has high growth expectations.
How Well Does RHHBY Make Money?
Net Profit Margin
For every $100 in sales, Roche Holding AG keeps $19.74 as profit after all expenses.
Operating Margin
Core operations generate 26.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.21 in profit for every $100 of shareholder equity.
ROA
Roche Holding AG generates $9.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Roche Holding AG generates strong operating cash flow of $17.78B, reflecting robust business health.
Free Cash Flow
Roche Holding AG generates strong free cash flow of $14.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.18 in free cash annually.
FCF Yield
RHHBY converts 4.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How RHHBY Stacks Against Its Sector Peers
| Metric | RHHBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.33 | 29.28 | Worse (Expensive) |
| ROE | 29.21% | 820.00% | Weak |
| Net Margin | 19.74% | -19731.00% (disorted) | Strong |
| Debt/Equity | 0.94 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.38 | 4.69 | Neutral |
| ROA | 9.06% | -17993.00% (disorted) | Weak |
RHHBY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Roche Holding AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.12%
Industry Style: Defensive, Growth, Innovation
GrowingEPS CAGR
-34.14%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-3.59%
Industry Style: Defensive, Growth, Innovation
Declining