Stock Analysis: Roche Holding AG

By F. Hoffmann-La Roche, Ltd. - Roche Annual Report 2006Transferred from English Wikipedia;


Roche Holding AG, bearing the ticker symbol RHHBY, has previously been selected for a couple of dog of the week portfolios. This is the third mention of Roche for my Viking portfolio. It was discussed on November 18, and March 16 for that portfolio.

Roche is a Swiss biopharmaceutical and diagnostic company.

The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008.

Oncology products account for 50% of pharmaceutical sales, and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.

It has a research collaboration agreement with Synlogic, Inc. for the discovery of a novel synthetic biotic for the treatment of inflammatory bowel disease (IBD).

Roche Holding AG was founded in 1896 and is headquartered in Basel, Switzerland.

Three key data points gauge Roche Holding AG or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.


RHHBY Price

Roche’s price per share was $39.89 at Monday’s market close. In the past year, its share price stayed even at about $39.75-$39.79

If Roche’s stock trades in the range of $35.00 to $45.00 this next year, its recent $39.89 share price might drop to $35.80 before next year. It could go up about the same $4.09 amount.

My downside estimate of $4.09 a well under the median of the $10.09 annual target increase estimated by three analysts tracking RHHBY stock for brokers.


RHHBY Dividend

Roche’s recent $1.28 Annual dividend yielded 3.22% at Monday’s closing price.


RHHBY Returns

Taking the $1.28 projected annual dividend tour of my estimated $4.09 estimated price drop, reveals a $2.81 potential gross loss per share for the coming year.

At Friday’s $39.79 closing price, a little under $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.40 per share.

Include that maybe $0.40 brokerage cost in my estimated $2.81 gross loss per share estimate makes a net loss amount of $3.21 X 25 shares = $80.25 or a 8% net LOSS.

In the next year our $1K investment in shares of RHHBY could generate about $32.20 in dividends. Furthermore, a single share of RHHBY stock at Monday’s $39.79 price is $7.59 less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this no time to consider Roche Holding AG based on its estimated dividends for 2023. The dividend from $1k invested is about $7.59 lessthan RHHBY’s single-share price. Consider yourself alerted.

Wait for Roche’s share price to drop below $35.80, then pounce.

All of the estimates above are speculation based on the past history of investment in shares of Roche Holding AG. Only time and money invested in this stock will determine its future market value.

More By This Author:

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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