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

Last update: Feb 8, 2024

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.

Assessing Valuation for NASDAQ:RPRX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:RPRX has achieved a 8 out of 10:

The Price/Earnings ratio is 6.12, 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 95.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.88, RPRX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.51 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 94.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.46. RPRX is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 90.10% of the companies listed in the same industry.
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.

Profitability Examination 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 83.66% of the companies in the same industry.
The Return On Equity of RPRX (3.00%) is better than 86.63% 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 84.65% of the companies in the same industry.
Looking at the Profit Margin, with a value of 7.93%, RPRX belongs to the top of the industry, outperforming 88.12% of the companies in the same industry.
RPRX has a Operating Margin of 43.55%. This is amongst the best in the industry. RPRX outperforms 98.51% of its industry peers.

Unpacking NASDAQ:RPRX's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:RPRX, the assigned 5 for health provides valuable insights:

The Altman-Z score of RPRX (1.75) is better than 65.84% of its industry peers.
The Debt to FCF ratio of RPRX (4.31) is better than 86.63% of its industry peers.
RPRX has a Current Ratio of 13.51. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 13.51, RPRX belongs to the top of the industry, outperforming 87.13% 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's Quick ratio of 13.51 is amongst the best of the industry. RPRX outperforms 87.13% of its industry peers.

A Closer Look at Growth for NASDAQ:RPRX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:RPRX has earned a 5 for growth:

The Earnings Per Share has grown by an impressive 64.60% over the past year.
RPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.33% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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.

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.