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Roche Holding AG

RHHVF
74
Drug Manufacturers - General · Healthcare
Exchange
Other OTC
Winston Score
74
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Mixed
Cash Flow
Exceptional
Stability
Strong
Valuation
Good
Dividends
Strong

Winston Score History

The full picture

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.

Score breakdown

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Quality

Profit per sale
Gross Margin
73.7%
Premium pricing power — 73.7% gross margin
Profit after running costs
Operating Margin
31.1%
Excellent — 31.1% operating margin
Return on the money invested
ROCE
27.9%
Exceptional — 27.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-4.3%
Shrinking sales (-4.3% YoY)
Profit growth
EPS YoY
+29.5%
Earnings growing fast (+29.5% YoY)

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

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
149%
Turns 149% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
0.97
Moderate — manageable debt (0.97)
Covers its interest
Interest Cover
12.97x
Comfortably covers interest (13.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
30.1x
no trend
Pricey — P/E 30.1

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

Cheaper or dearer next year
P/E vs Forward
+14.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (30.1 → 15.5)

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Dividends

Dividend
Dividend Yield
2.72%
no trend
Moderate income — 2.72% yield

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

Dividend record
Dividend Growth
+18.6%
no trend
Dividend growing fast (18.6% YoY)

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