Laboratorios Farmaceuticos ROVI
🇪🇸 ROVI.MC · Madrid · ES0157261019
Healthcare
EUR 82.65 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
30.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 82.65 ÷ 2.75 = 30.1
TTM period through: 2025-12-31
Forward P/E (estimated): 36.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 35.0
Yield (Fwd)
1.14%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Net Debt/EBITDA (TTM)
0.2x
Latest quarter: 0.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 0.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
34.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 34.1%
Cash Flow Payout (TTM): 25.8%
FCF Coverage (TTM): 2.51x
ROE
22.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
22.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Laboratorios Farmaceuticos ROVI is a fundamentally robust and highly profitable pharmaceutical manufacturer with an exceptionally clean balance sheet. However, the combination of a stretched P/E ratio above 30x, a negligible 1.14% dividend yield, and a history of dividend cuts makes it a clear mismatch for a conservative dividend income strategy. Not recommended for new positions, as better opportunities exist in more stable, higher-yielding essential service businesses.
Sector Context
Laboratorios Farmaceuticos ROVI operates in the healthcare sector, specializing in the research, development, and manufacturing of pharmaceuticals, and serves as a Contract Development and Manufacturing Organization (CDMO). While healthcare generally provides essential, non-cyclical demand, pharmaceutical and biotech companies often prioritize reinvesting cash flows into R&D, facility expansion, and strategic acquisitions rather than maintaining the high, stable dividend payouts required by traditional income investors.
Temporary Opportunity Identified
The company is experiencing revenue normalization following the end of highly lucrative pandemic-era COVID-19 vaccine manufacturing contracts, leading to recent and proposed dividend cuts.
📊 Strategy Analysis
- • Exceptionally clean balance sheet with a Net Debt/EBITDA ratio of just 0.24x, indicating virtually zero financial risk
- • Strong fundamental profitability demonstrated by an ROE of 22.3% and robust free cash flow generation (FCF coverage of 2.51x)
- • Recent strategic acquisitions, such as the Arizona manufacturing plant, position the CDMO business for long-term growth despite the normalization of pandemic-era contracts
⚠ What to Watch
- • Severely stretched valuation with a P/E of 30.1x and Forward P/E of 36.6x, trading far above the strategy's strict 8-15x target range
- • Insufficient dividend yield of 1.14%, falling drastically below the 3% minimum requirement for income-focused portfolios
- • Inconsistent dividend history featuring multiple historical cuts, including a 17.4% reduction in 2024 and an announced 14.6% reduction proposed for 2026, making it an unreliable income generator
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.