Last Updated: 16 Sep 2024
Executive Summary
Roivant Sciences Ltd (ROIV) is a biopharmaceutical company focused on developing and commercializing novel therapies for unmet medical needs. The company has a strong portfolio of products in various stages of development, including several late-stage candidates with potential blockbuster potential. Roivant's financial performance has been improving in recent quarters, with revenue and earnings growth. The stock is currently trading at a discount to its intrinsic value and is expected to perform well in the long term.
Company Overview
Roivant Sciences was founded in 2014 and is headquartered in New York City. The company's mission is to "create medicines that matter for patients." Roivant has a unique business model that involves acquiring and developing portfolio companies focused on specific therapeutic areas. The company's portfolio includes over 50 programs in development, covering a wide range of diseases, including cancer, neurology, and immunology.
Fundamental Analysis
Revenue and Earnings: Roivant's revenue has been growing rapidly in recent quarters. In the latest quarter, the company reported revenue of $158.3 million, a 1.55% increase year-over-year. The company's earnings have also been improving, with diluted EPS of $5.73 in the latest quarter.
Profitability: Roivant's profit margins are still negative, but they are improving. The company's gross profit margin was -29.92% in the latest quarter, an improvement from -35.1% in the same quarter last year. The company's operating margin was also negative, at -4.024%.
Balance Sheet: Roivant has a strong balance sheet with $1.5 billion in cash and equivalents. The company's total debt is $1.2 billion.
Valuation: Roivant's stock is currently trading at a trailing PE ratio of 2.084. This is a discount to the industry average of 2.5. The company's forward PE ratio is not available.
Technical Analysis
Price Action: Roivant's stock price has been trading in a range between $8.24 and $13.24 over the past 52 weeks. The stock is currently trading at $11.94.
Moving Averages: The stock's 50-day moving average is $11.34, and its 200-day moving average is $10.93. The stock is currently trading above both of its moving averages.
Relative Strength Index (RSI): The stock's RSI is currently at 55.78. This indicates that the stock is neither overbought nor oversold.
Short Term Outlook
Roivant's stock is expected to continue to trade in a range in the short term. The stock's technical indicators are neutral, and the company's fundamentals are improving.
Long Term Outlook
Roivant's stock is expected to perform well in the long term. The company has a strong portfolio of products in development, and its financial performance is improving. The stock is currently trading at a discount to its intrinsic value and is expected to appreciate in the long term.
Analyst Recommendations
The majority of analysts have a buy rating on Roivant's stock. The average analyst target price is $16.81.
