NASDAQ:RPRX is an undervalued gem with solid fundamentals.

Last update: Dec 26, 2023

Discover ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX), an undervalued stock highlighted by our stock screener. NASDAQ:RPRX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Looking at the Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:RPRX has received a 8 out of 10:

The Price/Earnings ratio is 5.75, which indicates a rather cheap valuation of RPRX.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 93.07% of the companies in the same industry.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 25.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.79, the valuation of RPRX can be described as very cheap.
95.05% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.89. RPRX is valued rather cheaply when compared to this.
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaper than 91.09% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RPRX may justify a higher PE ratio.

Exploring NASDAQ:RPRX's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:RPRX has achieved a 6:

RPRX has a better Return On Assets (1.16%) than 83.17% of its industry peers.
RPRX's Return On Equity of 3.00% is amongst the best of the industry. RPRX outperforms 85.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.08%, RPRX belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
The Profit Margin of RPRX (7.93%) is better than 87.62% of its industry peers.
RPRX's Operating Margin of 43.55% is amongst the best of the industry. RPRX outperforms 98.51% of its industry peers.

Evaluating Health: NASDAQ:RPRX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:RPRX has earned a 5 out of 10:

With a decent Altman-Z score value of 1.69, RPRX is doing good in the industry, outperforming 67.33% of the companies in the same industry.
RPRX has a better Debt to FCF ratio (4.31) than 86.63% of its industry peers.
A Current Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
RPRX has a Current ratio of 13.51. This is amongst the best in the industry. RPRX outperforms 87.62% of its industry peers.
A Quick Ratio of 13.51 indicates that RPRX has no problem at all paying its short term obligations.
RPRX's Quick ratio of 13.51 is amongst the best of the industry. RPRX outperforms 87.62% of its industry peers.

Growth Assessment of NASDAQ:RPRX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:RPRX was assigned a score of 4 for growth:

RPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.60%, which is quite impressive.
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.

Our latest full fundamental report of RPRX contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.