For those who appreciate value investing, NASDAQ:RPRX is a compelling option with its solid fundamentals.

Last update: Feb 29, 2024

Uncover the hidden value in ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX) as our stock screening tool recommends it as an undervalued choice. NASDAQ:RPRX maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Assessing Valuation for NASDAQ:RPRX

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 7 out of 10:

RPRX is valuated cheaply with a Price/Earnings ratio of 6.99.
Compared to the rest of the industry, the Price/Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 94.00% of the companies listed in the same industry.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 26.04, which is the current average of the S&P500 Index.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 7.83.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.61. RPRX is valued rather cheaply when compared to this.
82.50% of the companies in the same industry are more expensive than RPRX, based on the Price/Free Cash Flow ratio.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NASDAQ:RPRX's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:RPRX has earned a 7 out of 10:

RPRX has a Return On Assets of 6.93%. This is amongst the best in the industry. RPRX outperforms 90.50% of its industry peers.
RPRX has a better Return On Equity (17.39%) than 92.00% of its industry peers.
RPRX's Return On Invested Capital of 7.27% is amongst the best of the industry. RPRX outperforms 87.00% of its industry peers.
The last Return On Invested Capital (7.27%) for RPRX is above the 3 year average (6.15%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 48.20%, RPRX belongs to the best of the industry, outperforming 98.50% of the companies in the same industry.
The Operating Margin of RPRX (63.37%) is better than 99.50% of its industry peers.

Health Insights: 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 6 out of 10:

With a decent Altman-Z score value of 1.86, RPRX is doing good in the industry, outperforming 66.50% of the companies in the same industry.
RPRX's Debt to FCF ratio of 7.03 is amongst the best of the industry. RPRX outperforms 81.50% of its industry peers.
RPRX has a Current Ratio of 7.90. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
RPRX has a Current ratio of 7.90. This is in the better half of the industry: RPRX outperforms 76.00% of its industry peers.
A Quick Ratio of 7.90 indicates that RPRX has no problem at all paying its short term obligations.
With a decent Quick ratio value of 7.90, RPRX is doing good in the industry, outperforming 76.50% of the companies in the same industry.

ChartMill's Evaluation of 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:

RPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.35%, which is quite good.
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.

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

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.