SWX:ROG

Stock Analysis Report

Executive Summary

Roche Holding AG engages in the diagnostics and prescription pharmaceuticals businesses in Switzerland, Germany, and internationally.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Roche Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

ROG

1.6%

CH Pharmaceuticals

-0.3%

CH Market


1 Year Return

20.4%

ROG

12.1%

CH Pharmaceuticals

6.4%

CH Market

ROG outperformed the Pharmaceuticals industry which returned 11.5% over the past year.

ROG outperformed the Market in Switzerland which returned 6.5% over the past year.


Share holder returns

ROGIndustryMarket
7 Day5.2%1.6%-0.3%
30 Day3.7%1.1%3.0%
90 Day2.1%-0.8%1.6%
1 Year24.3%20.4%22.2%12.1%11.9%6.4%
3 Year27.7%15.5%30.9%12.3%31.6%14.8%
5 Year17.9%0.2%23.7%-0.4%35.0%13.8%

Price Volatility Vs. Market

How volatile is Roche Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

Could Roche Holding AG (VTX:ROG) Have The Makings Of Another Dividend Aristocrat?

Valuation

Is Roche Holding undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Roche Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).

Roche Holding's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Roche Holding is good value based on earnings compared to the Europe Pharmaceuticals industry average.

Roche Holding is overvalued based on earnings compared to the Switzerland market.


Price Based on Expected Growth

Roche Holding is poor value based on expected growth next year.


Price Based on Value of Assets

Roche Holding is overvalued based on assets compared to the CH Pharmaceuticals industry average.


Next Steps

Future Growth

How is Roche Holding expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Roche Holding's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Roche Holding's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Roche Holding's revenue growth is positive but not above the Switzerland market average.

Roche Holding's earnings growth is positive but not above the Switzerland market average.

Roche Holding's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Roche Holding is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Roche Holding performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Roche Holding's year on year earnings growth rate has been positive over the past 5 years.

Roche Holding's 1-year earnings growth exceeds its 5-year average (12.9% vs 2.8%)

Roche Holding's earnings growth has exceeded the Europe Pharmaceuticals industry average in the past year (12.9% vs 10.7%).


Return on Equity

Roche Holding has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Roche Holding used its assets more efficiently than the Europe Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Roche Holding has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Roche Holding's financial position?


Financial Position Analysis

Roche Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Roche Holding's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Roche Holding's level of debt (63.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (97.2% vs 63.1% today).

Debt is well covered by operating cash flow (102.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 34x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

What is Roche Holding's current dividend yield, its reliability and sustainability?

3.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Roche Holding's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.92%).

Roche Holding's dividend is below the markets top 25% of dividend payers in Switzerland (3.73%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

What is the CEO of Roche Holding's salary, the management and board of directors tenure and is there insider trading?

8.4yrs

Average management tenure


CEO

Severin Schwan (52yo)

11.5yrs

Tenure

CHF12,189,402

Compensation

Dr. Severin Schwan, Ph.D., has been Chief Executive Officer of Roche Holding AG and Roche Holdings, Inc. and Roche Molecular Systems Inc.since March 2008. Dr. Schwan has been Group Chief Executive Officer  ...


CEO Compensation Analysis

Severin's remuneration is higher than average for companies of similar size in Switzerland.

Severin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.4yrs

Average Tenure

59yo

Average Age

The average tenure for the Roche Holding management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

65.5yo

Average Age

The tenure for the Roche Holding board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mike Varney (61yo)

    Head of Genentech Research & Early Development

    • Tenure: 4.7yrs
  • Gottlieb Keller (65yo)

    General Counsel & Corporate Secretary

    • Tenure: 11.7yrs
    • Compensation: CHF4.65m
  • Alan Hippe (52yo)

    Chief Financial & IT Officer

    • Tenure: 8.4yrs
    • Compensation: CHF5.68m
  • Stephan Feldhaus (57yo)

    Head of Group Communications

    • Tenure: 9.7yrs
  • Severin Schwan (52yo)

    CEO & Executive Director

    • Tenure: 11.5yrs
    • Compensation: CHF12.19m
  • Karl Mahler

    Head of Investor Relations

    • Tenure: 0yrs
  • Sandra Horning (70yo)

    Chief Medical Officer & Head of Global Product Development

    • Tenure: 5.7yrs
  • Urs Jaisli (63yo)

    Chief Compliance Officer

    • Tenure: 0yrs
  • Nicolas Dunant

    Head of Group Media Relations

    • Tenure: 0yrs
  • Cristina Wilbur (52yo)

    Head of Group Human Resources

    • Tenure: 3.5yrs
    • Compensation: CHF3.72m

Board Members

  • John Bell (67yo)

    Non-Executive Director

    • Tenure: 18.7yrs
    • Compensation: CHF330.00k
  • Bernard Poussot (67yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CHF330.00k
  • Fritz Gerber (90yo)

    Honorary Chairman

    • Tenure: 0yrs
  • André Hoffmann (61yo)

    Vice Chairman

    • Tenure: 13.7yrs
    • Compensation: CHF439.12k
  • Andreas Oeri (70yo)

    Non-Executive Director

    • Tenure: 23.7yrs
    • Compensation: CHF360.00k
  • Paul Bulcke (65yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CHF330.00k
  • Christoph Franz (59yo)

    Chairman

    • Tenure: 5.7yrs
    • Compensation: CHF5.75m
  • Severin Schwan (52yo)

    CEO & Executive Director

    • Tenure: 11.5yrs
    • Compensation: CHF12.19m
  • Richard Lifton (66yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CHF339.78k
  • Julie Brown (57yo)

    Non-Executive Independent Director

    • Tenure: 3.5yrs
    • Compensation: CHF360.00k

Company Information

Roche Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Roche Holding AG
  • Ticker: ROG
  • Exchange: SWX
  • Founded: 1896
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CHF241.945b
  • Shares outstanding: 856.06m
  • Website: https://www.roche.com

Number of Employees


Location

  • Roche Holding AG
  • Konzern-Hauptsitz
  • Grenzacherstrasse124
  • Basel
  • Basel-Stadt
  • 4070
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RHHV.FOTCPK (Pink Sheets LLC)YesNon-Voting Equity SecuritiesUSUSDJan 1992
0QQ6LSE (London Stock Exchange)Bearer SharesGBCHFJan 1992
RHO5DB (Deutsche Boerse AG)YesNon-Voting Equity SecuritiesDEEURJan 1992
ROSWX (SIX Swiss Exchange)Bearer SharesCHCHFJan 1992
ROGSWX (SIX Swiss Exchange)YesNon-Voting Equity SecuritiesCHCHFJan 1992
RHODB (Deutsche Boerse AG)Bearer SharesDEEURJan 1992
RHHB.FOTCPK (Pink Sheets LLC)Bearer SharesUSUSDJan 1992
0QOKLSE (London Stock Exchange)YesNon-Voting Equity SecuritiesGBCHFJan 1992
RHOXTRA (XETRA Trading Platform)Bearer SharesDEEURJan 1992
RHO5XTRA (XETRA Trading Platform)YesNon-Voting Equity SecuritiesDEEURJan 1992
ROG NBMV (Bolsa Mexicana de Valores)YesNon-Voting Equity SecuritiesMXMXNJan 1992
RHO6DB (Deutsche Boerse AG)SPN ADR EACH REP 0.125 GENUSDEEURAug 1992
RHHB.YOTCPK (Pink Sheets LLC)SPN ADR EACH REP 0.125 GENUSUSUSDAug 1992
0TDFLSE (London Stock Exchange)SPN ADR EACH REP 0.125 GENUSGBUSDAug 1992

Biography

Roche Holding AG engages in the diagnostics and prescription pharmaceuticals businesses in Switzerland, Germany, and internationally. It offers pharmaceutical products for treating anaemia, anticoagulation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 20:44
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.