NASDAQ:RPRX is an undervalued gem with solid fundamentals.

Our stock screening tool has pinpointed ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX) as an undervalued stock option. NASDAQ:RPRX retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

A Closer Look at Valuation for NASDAQ:RPRX

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:RPRX was assigned a score of 7 for valuation:

• RPRX is valuated cheaply with a Price/Earnings ratio of 6.93.
• Compared to the rest of the industry, the Price/Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 94.53% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of RPRX to the average of the S&P500 Index (26.48), we can say RPRX is valued rather cheaply.
• With a Price/Forward Earnings ratio of 7.91, the valuation of RPRX can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 93.03% of the companies listed in the same industry.
• RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
• RPRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RPRX is cheaper than 82.09% of the companies in the same industry.
• RPRX has a very decent profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:RPRX's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:RPRX, the assigned 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 6.93%, RPRX belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
• With an excellent Return On Equity value of 17.39%, RPRX belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
• RPRX's Return On Invested Capital of 7.27% is amongst the best of the industry. RPRX outperforms 87.06% of its industry peers.
• The 3 year average ROIC (6.15%) for RPRX is below the current ROIC(7.27%), indicating increased profibility in the last year.
• RPRX has a Profit Margin of 48.20%. This is amongst the best in the industry. RPRX outperforms 97.51% of its industry peers.
• The Operating Margin of RPRX (63.37%) is better than 99.50% of its industry peers.

Health Insights: NASDAQ:RPRX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:RPRX has earned a 6 out of 10:

• RPRX has a Altman-Z score of 1.85. This is in the better half of the industry: RPRX outperforms 67.16% of its industry peers.
• RPRX's Debt to FCF ratio of 7.03 is amongst the best of the industry. RPRX outperforms 83.58% 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 79.60% of its industry peers.
• A Quick Ratio of 7.90 indicates that RPRX has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 7.90, RPRX belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.

Exploring NASDAQ:RPRX's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:RPRX, the assigned 4 reflects its growth potential:

• The Earnings Per Share has grown by an nice 19.35% 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.

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

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.