Fact based stock research
Laboratorios Farmaceuticos Rovi (BME:ROVI)

ES0157261019

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Laboratorios Farmaceuticos Rovi stock research in summary

rovi.es

ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Laboratorios Farmaceuticos Rovi (Pharmaceuticals, Spain) shares have above-average financial characteristics compared with similar stocks. Shares of Laboratorios Farmaceuticos Rovi are low in value (priced high) with a consolidated Value Rank of 18 (worse than 82% of alternatives). But they show above-average growth (Growth Rank of 54) and are safely financed (Safety Rank of 85, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on Laboratorios Farmaceuticos Rovi's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Laboratorios Farmaceuticos Rovi exhibits low value (Obermatt Value Rank of 18), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 54). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 85) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	18
Growth Rank	54
Safety Rank	85
Combined Rank	63

Country	Spain
Industry	Pharmaceuticals
Index
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Laboratorios Farmaceuticos Rovi

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	42	35	18
GROWTH
GROWTH	100	95	19	54
SAFETY
SAFETY	58	75	88	85
SENTIMENT
SENTIMENT	n/a	46	98	^new
360° VIEW
360° VIEW	n/a	80	76	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Laboratorios Farmaceuticos Rovi is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	42	35	18
GROWTH
GROWTH	100	95	19	54
SAFETY
SAFETY	58	75	88	85
COMBINED
COMBINED	63	92	38	63

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Laboratorios Farmaceuticos Rovi the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 18 (worse than 82% compared with alternatives), Laboratorios Farmaceuticos Rovi shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Laboratorios Farmaceuticos Rovi. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 62% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 22 which means that the stock price compared with what market professionals expect for future profits is higher than 78% of comparable companies, indicating a low value concerning Laboratorios Farmaceuticos Rovi's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 33 which means that the stock price compared with what market professionals expect for future profit levels is higher than 67% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 14 is also low. Compared with invested capital, the stock price is higher than for 86% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 18, is a sell recommendation based on Laboratorios Farmaceuticos Rovi's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Laboratorios Farmaceuticos Rovi? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Laboratorios Farmaceuticos Rovi only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	16	40	33	22
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	49	38	33
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	17	22	14
DIVIDEND YIELD
DIVIDEND YIELD	49	72	63	62
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	42	35	18

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Laboratorios Farmaceuticos Rovi; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 54 (better than 54% compared with alternatives), Laboratorios Farmaceuticos Rovi shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Laboratorios Farmaceuticos Rovi. Capital Growth has a rank of 88, which means that currently professionals expect the company to grow its invested capital more than 31% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 72 (above 72% of alternative investments). But Sales Growth has only a rank of 15, which means that, currently, professionals expect the company to grow less than 85% of its competitors, and Profit Growth is also low at a rank of 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 54, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Laboratorios Farmaceuticos Rovi, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	100	74	4	15
PROFIT GROWTH
PROFIT GROWTH	n/a	92	18	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	31	19	88
STOCK RETURNS
STOCK RETURNS	98	96	98	72
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100	95	19	54

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Laboratorios Farmaceuticos Rovi.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2024, the company Laboratorios Farmaceuticos Rovi has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Laboratorios Farmaceuticos Rovi is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Laboratorios Farmaceuticos Rovi. Leverage is at a rank of 79, meaning the company has a below-average debt-to-equity ratio. It has less debt than 79% of its competitors. Liquidity is also good at a rank of 94, meaning the company generates more profit to service its debt than 94% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), Laboratorios Farmaceuticos Rovi has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Laboratorios Farmaceuticos Rovi. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Laboratorios Farmaceuticos Rovi and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	57	76	79
REFINANCING
REFINANCING	41	42	47	37
LIQUIDITY
LIQUIDITY	54	76	100	94
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	58	75	88	85

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Laboratorios Farmaceuticos Rovi and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	81	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	12	90	^new
MARKET PULSE
MARKET PULSE	n/a	53	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	46	98	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Laboratorios Farmaceuticos Rovi.
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