Roche Holding AG

RHHBF

Drug Manufacturers - General · Healthcare

Price

$435.00

+11.00 (+2.59%)

Market Cap

$346.26B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−6.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 860.0M (2021) → 803.0M (2025)

Roche is a Swiss healthcare company that makes medicines and medical tests. Its pharmaceutical division sells treatments for cancer, multiple sclerosis, and rare diseases — drugs like Herceptin, Avastin, and Ocrevus are among its best-known products. Its diagnostics division makes lab equipment and tests used by hospitals and clinics worldwide, making Roche one of the largest diagnostics companies on the planet.

Roche earns money by selling prescription drugs directly to hospitals and healthcare systems, and by selling diagnostic instruments and the consumables that go with them. It operates globally, with strong revenue across the United States, Europe, and Asia, and generates over $50 billion in annual sales. Its main competitive advantage is a deep pipeline of patented medicines and a dominant position in cancer diagnostics and treatment. The key risk is patent expiration — several blockbuster drugs already face biosimilar competition, which has pressured revenue in recent years.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+356.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$13.4B/ year

↓ Declining (-13% vs prior year)

21.7% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

72.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$15.5B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Roche Holding AG's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

71.7%

Premium pricing power — 71.7% gross margin

Operating Margin

23.2%

Excellent — 23.2% operating margin

ROCE

10.9%

Below par — 10.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+0.9%

Nearly flat sales (0.9% YoY)

EPS YoY

-1.8%

Earnings shrinking (-1.8% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

200%

Turns 200% of profit into real cash

FCF Margin

24.8%

Converts sales into free cash efficiently (24.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.94

Moderate — manageable debt (0.94)

Interest Cover

11.48x

Comfortably covers interest (11.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

16.4x

Fair value — P/E 16.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

-2.0

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

2.89%

Moderate income — 2.89% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+18.6%

Dividend growing fast (18.6% YoY)

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