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ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis

NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD

31.26  -0.07 (-0.22%)

After market: 31.01 -0.25 (-0.8%)

Fundamental Rating

4

RPRX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. RPRX scores excellent on profitability, but there are concerns on its financial health. RPRX has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year RPRX was profitable.
In the past year RPRX had a positive cash flow from operations.
In the past 5 years RPRX has always been profitable.
RPRX had a positive operating cash flow in each of the past 5 years.
RPRX Yearly Net Income VS EBIT VS OCF VS FCFRPRX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

1.2 Ratios

RPRX has a better Return On Assets (6.35%) than 90.86% of its industry peers.
RPRX's Return On Equity of 16.67% is amongst the best of the industry. RPRX outperforms 91.40% of its industry peers.
With an excellent Return On Invested Capital value of 7.23%, RPRX belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RPRX is significantly below the industry average of 44.00%.
The 3 year average ROIC (6.15%) for RPRX is below the current ROIC(7.23%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.35%
ROE 16.67%
ROIC 7.23%
ROA(3y)3.57%
ROA(5y)6.53%
ROE(3y)9.63%
ROE(5y)15.52%
ROIC(3y)6.15%
ROIC(5y)8.78%
RPRX Yearly ROA, ROE, ROICRPRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

RPRX has a Profit Margin of 50.53%. This is amongst the best in the industry. RPRX outperforms 98.92% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
Looking at the Operating Margin, with a value of 68.13%, RPRX belongs to the top of the industry, outperforming 99.46% of the companies in the same industry.
In the last couple of years the Operating Margin of RPRX has declined.
Industry RankSector Rank
OM 68.13%
PM (TTM) 50.53%
GM N/A
OM growth 3Y-6.78%
OM growth 5Y-3.57%
PM growth 3Y27.36%
PM growth 5Y-8.89%
GM growth 3YN/A
GM growth 5YN/A
RPRX Yearly Profit, Operating, Gross MarginsRPRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 50 100

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPRX is destroying value.
The number of shares outstanding for RPRX has been increased compared to 1 year ago.
Compared to 5 years ago, RPRX has more shares outstanding
Compared to 1 year ago, RPRX has an improved debt to assets ratio.
RPRX Yearly Shares OutstandingRPRX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
RPRX Yearly Total Debt VS Total AssetsRPRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

RPRX has an Altman-Z score of 1.65. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, RPRX is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that RPRX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.96, RPRX is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Altman-Z 1.65
ROIC/WACC0.84
WACC8.62%
RPRX Yearly LT Debt VS Equity VS FCFRPRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

RPRX has a Current Ratio of 1.54. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
RPRX has a worse Current ratio (1.54) than 71.51% of its industry peers.
A Quick Ratio of 1.54 indicates that RPRX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.54, RPRX is not doing good in the industry: 63.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.54
RPRX Yearly Current Assets VS Current LiabilitesRPRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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3

3. Growth

3.1 Past

The earnings per share for RPRX have decreased strongly by -14.41% in the last year.
The Earnings Per Share has been decreasing by -4.04% on average over the past years.
RPRX shows a decrease in Revenue. In the last year, the revenue decreased by -2.50%.
Measured over the past years, RPRX shows a small growth in Revenue. The Revenue has been growing by 5.58% on average per year.
EPS 1Y (TTM)-14.41%
EPS 3Y12.51%
EPS 5Y-4.04%
EPS Q2Q%27.85%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y3.52%
Revenue growth 5Y5.58%
Sales Q2Q%5.35%

3.2 Future

Based on estimates for the next years, RPRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.25% on average per year.
The Revenue is expected to grow by 0.24% on average over the next years.
EPS Next Y-7.59%
EPS Next 2Y1.38%
EPS Next 3Y3.96%
EPS Next 5Y13.25%
Revenue Next Year-5.27%
Revenue Next 2Y2.51%
Revenue Next 3Y4.3%
Revenue Next 5Y0.24%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RPRX Yearly Revenue VS EstimatesRPRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
RPRX Yearly EPS VS EstimatesRPRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.62, the valuation of RPRX can be described as very cheap.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 95.16% of the companies in the same industry.
RPRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 6.94, 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 94.62% of the companies listed in the same industry.
RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.62
Fwd PE 6.94
RPRX Price Earnings VS Forward Price EarningsRPRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RPRX Per share dataRPRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

RPRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.38%
EPS Next 3Y3.96%

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5

5. Dividend

5.1 Amount

RPRX has a Yearly Dividend Yield of 2.79%.
Compared to an average industry Dividend Yield of 4.30, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.47% of the companies listed in the same industry.
RPRX's Dividend Yield is a higher than the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 2.79%

5.2 History

RPRX has been paying a dividend for over 5 years, so it has already some track record.
RPRX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
RPRX Yearly Dividends per shareRPRX Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

32.50% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP32.5%
EPS Next 2Y1.38%
EPS Next 3Y3.96%
RPRX Yearly Income VS Free CF VS DividendRPRX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 1B 2B
RPRX Dividend Payout.RPRX Dividend Payout, showing the Payout Ratio.RPRX Dividend Payout.PayoutRetained Earnings

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ROYALTY PHARMA PLC- CL A

NASDAQ:RPRX (2/4/2025, 8:05:31 PM)

After market: 31.01 -0.25 (-0.8%)

31.26

-0.07 (-0.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-11 2025-02-11/amc
Inst Owners72.03%
Inst Owner Change-1.21%
Ins Owners1.37%
Ins Owner Change0.56%
Market Cap18.42B
Analysts81.33
Price Target39.06 (24.95%)
Short Float %4.37%
Short Ratio4.51
Dividend
Industry RankSector Rank
Dividend Yield 2.79%
Yearly Dividend0.81
Dividend Growth(5Y)N/A
DP32.5%
Div Incr Years4
Div Non Decr Years4
Ex-Date02-21 2025-02-21 (0.22)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.09%
Min EPS beat(2)-2.47%
Max EPS beat(2)6.65%
EPS beat(4)2
Avg EPS beat(4)3.41%
Min EPS beat(4)-2.47%
Max EPS beat(4)11.63%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)7
Avg EPS beat(12)2.03%
EPS beat(16)8
Avg EPS beat(16)-8.28%
Revenue beat(2)0
Avg Revenue beat(2)-12.79%
Min Revenue beat(2)-20.42%
Max Revenue beat(2)-5.16%
Revenue beat(4)0
Avg Revenue beat(4)-14.29%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)-5.16%
Revenue beat(8)0
Avg Revenue beat(8)-17.1%
Revenue beat(12)1
Avg Revenue beat(12)-12.57%
Revenue beat(16)5
Avg Revenue beat(16)-7.41%
PT rev (1m)-4.65%
PT rev (3m)-14.9%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)4.38%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)2.08%
Revenue NY rev (3m)-0.22%
Valuation
Industry RankSector Rank
PE 7.62
Fwd PE 6.94
P/S 8.13
P/FCF N/A
P/OCF 6.58
P/B 2.68
P/tB 2.68
EV/EBITDA N/A
EPS(TTM)4.1
EY13.12%
EPS(NY)4.5
Fwd EY14.4%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)4.75
OCFY15.2%
SpS3.85
BVpS11.66
TBVpS11.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.35%
ROE 16.67%
ROCE 9.15%
ROIC 7.23%
ROICexc 8.07%
ROICexgc 8.07%
OM 68.13%
PM (TTM) 50.53%
GM N/A
FCFM N/A
ROA(3y)3.57%
ROA(5y)6.53%
ROE(3y)9.63%
ROE(5y)15.52%
ROIC(3y)6.15%
ROIC(5y)8.78%
ROICexc(3y)7.05%
ROICexc(5y)9.9%
ROICexgc(3y)7.05%
ROICexgc(5y)9.92%
ROCE(3y)7.78%
ROCE(5y)11.11%
ROICexcg growth 3Y-7.89%
ROICexcg growth 5Y-9.48%
ROICexc growth 3Y-7.82%
ROICexc growth 5Y-9.32%
OM growth 3Y-6.78%
OM growth 5Y-3.57%
PM growth 3Y27.36%
PM growth 5Y-8.89%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 132.9%
Interest Coverage -9.52
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.54
Quick Ratio 1.54
Altman-Z 1.65
F-Score7
WACC8.62%
ROIC/WACC0.84
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)87.81%
Cap/Sales(5y)92.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.41%
EPS 3Y12.51%
EPS 5Y-4.04%
EPS Q2Q%27.85%
EPS Next Y-7.59%
EPS Next 2Y1.38%
EPS Next 3Y3.96%
EPS Next 5Y13.25%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y3.52%
Revenue growth 5Y5.58%
Sales Q2Q%5.35%
Revenue Next Year-5.27%
Revenue Next 2Y2.51%
Revenue Next 3Y4.3%
Revenue Next 5Y0.24%
EBIT growth 1Y52.51%
EBIT growth 3Y-3.5%
EBIT growth 5Y1.81%
EBIT Next Year17.58%
EBIT Next 3Y12.82%
EBIT Next 5Y13.08%
FCF growth 1Y-153%
FCF growth 3YN/A
FCF growth 5Y-8.35%
OCF growth 1Y35.62%
OCF growth 3Y13.66%
OCF growth 5Y13.05%