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

-0.4%

ROG

-0.4%

CH Pharmaceuticals

-0.6%

CH Market


1 Year Return

18.8%

ROG

9.3%

CH Pharmaceuticals

10.7%

CH Market

Return vs Industry: ROG exceeded the Swiss Pharmaceuticals industry which returned 9.3% over the past year.

Return vs Market: ROG exceeded the Swiss Market which returned 10.7% over the past year.


Shareholder returns

ROGIndustryMarket
7 Day-0.4%-0.4%-0.6%
30 Day1.4%0.5%-0.4%
90 Day9.5%1.9%1.1%
1 Year22.6%18.8%19.3%9.3%16.6%10.7%
3 Year40.1%26.6%43.4%23.0%35.5%21.9%
5 Year22.3%3.9%27.0%2.2%36.8%15.3%

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

Valuation

Is Roche Holding undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROG (CHF288.95) is trading below our estimate of fair value (CHF479.16)

Significantly Below Fair Value: ROG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ROG is good value based on its PE Ratio (20.9x) compared to the Pharmaceuticals industry average (23x).

PE vs Market: ROG is poor value based on its PE Ratio (20.9x) compared to the Swiss market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: ROG is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ROG is overvalued based on its PB Ratio (8.8x) compared to the CH Pharmaceuticals industry average (3.6x).


Next Steps

Future Growth

How is Roche Holding forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROG's forecast earnings growth (7.2% per year) is above the savings rate (3.3%).

Earnings vs Market: ROG's earnings (7.2% per year) are forecast to grow slower than the Swiss market (10.4% per year).

High Growth Earnings: ROG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROG's revenue (2.5% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: ROG's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROG's Return on Equity is forecast to be high in 3 years time (35.6%)


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

Earnings Trend: ROG's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: ROG's earnings growth over the past year (12.9%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: ROG earnings growth over the past year (12.9%) exceeded the Pharmaceuticals industry 1.9%.


Return on Equity

High ROE: ROG's Return on Equity (39.5%) is considered high.


Return on Assets

ROA vs Industry: ROG has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: ROG has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Roche Holding's financial position?


Financial Position Analysis

Short Term Liabilities: ROG's short term assets (CHF32.3B) exceeds its short term liabilities (CHF23.4B)

Long Term Liabilities: ROG's short term assets (32.3B) exceeds its long term liabilities (25.7B)


Debt to Equity History and Analysis

Debt Level: ROG's debt to equity ratio (63.1%) is considered high

Reducing Debt: ROG's debt to equity ratio has reduced from 97.2% to 63.1% over the past 5 years.

Debt Coverage: ROG's debt is well covered by operating cash flow (102.4%).

Interest Coverage: ROG's interest payments on its debt are well covered by EBIT (34x coverage).


Balance Sheet

Inventory Level: ROG has a high level of physical assets or inventory.

Debt Coverage by Assets: ROG's debt is covered by short term assets (assets are 1.651500x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.9%markettop25%3.7%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROG's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Swiss market (1.92%).

High Dividend: ROG's dividend (3.01%) is low compared to the top 25% of dividend payers in the Swiss market (3.71%).

Stable Dividend: ROG's dividends per share have been stable in the past 10 years.

Growing Dividend: ROG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63%), ROG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROG's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Severin Schwan (52yo)

11.6yrs

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

Compensation vs. Market: Severin's total compensation ($USD12.33M) is about average for companies of similar size in the Swiss market ($USD4.22M).

Compensation vs Earnings: Severin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.1yrs

Average Tenure

61yo

Average Age

Experienced Management: ROG's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: ROG's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mike Varney (61yo)

    Head of Genentech Research & Early Development

    • Tenure: 4.8yrs
  • Gottlieb Keller (65yo)

    General Counsel & Corporate Secretary

    • Tenure: 11.8yrs
    • Compensation: CHF4.65m
  • Alan Hippe (52yo)

    Chief Financial & IT Officer

    • Tenure: 8.5yrs
    • Compensation: CHF5.68m
  • Severin Schwan (52yo)

    CEO & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CHF12.19m
  • Karl Mahler

    Head of Investor Relations

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

    Chief Medical Officer & Head of Global Product Development

    • Tenure: 5.8yrs
  • Urs Jaisli (63yo)

    Chief Compliance Officer

    • Tenure: 0yrs
  • Nicolas Dunant

    Head of Group Media Relations

    • Tenure: 0yrs
  • Ehab Yousef

    Head of Middle East Sub-Region 1

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

    Head of Group Human Resources

    • Tenure: 3.6yrs
    • Compensation: CHF3.72m

Board Members

  • John Bell (67yo)

    Non-Executive Director

    • Tenure: 18.8yrs
    • Compensation: CHF330.00k
  • Bernard Poussot (67yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CHF330.00k
  • Fritz Gerber (90yo)

    Honorary Chairman

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

    Independent Vice Chairman

    • Tenure: 13.8yrs
    • Compensation: CHF439.12k
  • Andreas Oeri (70yo)

    Non-Executive Director

    • Tenure: 23.8yrs
    • Compensation: CHF360.00k
  • Paul Bulcke (65yo)

    Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: CHF330.00k
  • Christoph Franz (59yo)

    Independent Chairman

    • Tenure: 5.8yrs
    • Compensation: CHF5.75m
  • Severin Schwan (52yo)

    CEO & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CHF12.19m
  • Richard Lifton (66yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CHF339.78k
  • Julie Brown (57yo)

    Non-Executive Independent Director

    • Tenure: 3.6yrs
    • 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: CHF247.079b
  • 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 Analysis2019/10/22 20:44
End of Day Share Price2019/10/22 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.