NASDAQ:RPRX: good value for what you're paying.

Last update: Nov 14, 2023

Our stock screener has singled out ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX) as a stellar value proposition. NASDAQ:RPRX not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:RPRX scores a 8 out of 10:

The Price/Earnings ratio is 5.66, which indicates a rather cheap valuation of RPRX.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 93.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of RPRX to the average of the S&P500 Index (23.95), we can say RPRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.78, the valuation of RPRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 92.72% of the companies in the same industry.
RPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.79.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 89.81% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NASDAQ:RPRX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:RPRX scores a 6 out of 10:

Looking at the Return On Assets, with a value of 1.16%, RPRX belongs to the top of the industry, outperforming 82.04% of the companies in the same industry.
With an excellent Return On Equity value of 3.00%, RPRX belongs to the best of the industry, outperforming 84.47% of the companies in the same industry.
RPRX has a better Return On Invested Capital (5.09%) than 83.98% of its industry peers.
Looking at the Profit Margin, with a value of 7.93%, RPRX belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
The Operating Margin of RPRX (43.56%) is better than 99.03% of its industry peers.

Health Assessment of NASDAQ:RPRX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:RPRX was assigned a score of 5 for health:

With a decent Altman-Z score value of 1.68, RPRX is doing good in the industry, outperforming 68.93% of the companies in the same industry.
The Debt to FCF ratio of RPRX (4.31) is better than 87.86% of its industry peers.
A Current Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
RPRX's Current ratio of 13.51 is amongst the best of the industry. RPRX outperforms 86.89% of its industry peers.
A Quick Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 13.51, RPRX belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.

Exploring NASDAQ:RPRX's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:RPRX scores a 4 out of 10:

The Earnings Per Share has grown by an impressive 64.60% over the past year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of RPRX for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.