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Roche Holding AG

RHHVF
71
Drug Manufacturers - General · Healthcare
Price
$440.00
+10.48 (+2.44%)
Market Cap
$303.13B
Exchange
Other OTC
Winston Score
71
Winston is happy
A high-quality business with solid fundamentals.
Data as of Jul 28, 2026 · filings through Jun 30, 2026

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 eye diseases — with well-known drugs like Herceptin, Avastin, and Ocrevus. 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 along with the consumable test kits they require. The company operates globally, with strong revenue from the US, Europe, and Japan, and generates over $50 billion in annual sales. Its deep pipeline of cancer drugs and its combined pharma-plus-diagnostics model give it a competitive edge, but a key risk is patent expiration on older blockbuster drugs, which opens the door to cheaper biosimilar competitors that can quickly erode sales.

Winston Score History

Score breakdown

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Quality

Gross Margin
73.7%
Premium pricing power — 73.7% gross margin
Operating Margin
31.1%
Excellent — 31.1% operating margin
ROCE
14.6%
Good — 14.6% 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
-4.3%
Shrinking sales (-4.3% YoY)
EPS YoY
+29.5%
Earnings growing fast (29.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
149%
Turns 149% of profit into real cash
FCF Margin
24.2%
Converts sales into free cash efficiently (24.2%)

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
0.97
Moderate — manageable debt (0.97)
Interest Cover
12.97x
Comfortably covers interest (13.0x)

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

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Valuation

P/E Ratio (TTM)
28.7x
Growth-priced — P/E 28.7

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+9.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (28.7 → 19.6)

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Dividends

Dividend Yield
2.72%
Moderate income — 2.72% 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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