NASDAQ:RPRX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Dec 5, 2023

Uncover the potential of ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX) as our stock screener's choice for an undervalued stock. NASDAQ:RPRX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Unpacking NASDAQ:RPRX's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:RPRX boasts a 8 out of 10:

The Price/Earnings ratio is 5.91, which indicates a rather cheap valuation of RPRX.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.02, RPRX is valued rather cheaply.
The Price/Forward Earnings ratio is 7.09, which indicates a rather cheap valuation of RPRX.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.08, RPRX is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
RPRX's 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.

A Closer Look at Profitability for NASDAQ:RPRX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:RPRX was assigned a score of 6 for profitability:

With an excellent Return On Assets value of 1.16%, RPRX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.00%, RPRX belongs to the top of the industry, outperforming 85.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.08%, RPRX belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
With an excellent Profit Margin value of 7.93%, RPRX belongs to the best of the industry, outperforming 87.75% of the companies in the same industry.
The Operating Margin of RPRX (43.55%) is better than 98.53% of its industry peers.

Health Analysis for NASDAQ:RPRX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:RPRX scores a 5 out of 10:

The Altman-Z score of RPRX (1.71) is better than 68.63% of its industry peers.
RPRX has a Debt to FCF ratio of 4.31. This is amongst the best in the industry. RPRX outperforms 86.27% of its industry peers.
A Current Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
With an excellent Current ratio value of 13.51, RPRX belongs to the best of the industry, outperforming 87.25% of the companies in the same industry.
A Quick Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
RPRX has a Quick ratio of 13.51. This is amongst the best in the industry. RPRX outperforms 87.25% of its industry peers.

How We Gauge Growth for NASDAQ:RPRX

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.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of RPRX

Keep in mind

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.