ROYALTY PHARMA PLC- CL A (RPRX)
GB00BMVP7Y09 - Common Stock
Taking everything into account, RPRX scores 4 out of 10 in our fundamental rating. RPRX was compared to 194 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, 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.
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
RPRX had a positive operating cash flow in the past year.
RPRX had positive earnings in each of the past 5 years.
In the past 5 years RPRX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.35%, RPRX belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
With an excellent Return On Equity value of 16.67%, RPRX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
RPRX has a Return On Invested Capital of 7.23%. This is amongst the best in the industry. RPRX outperforms 85.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPRX is significantly below the industry average of 42.22%.
The last Return On Invested Capital (7.23%) for RPRX is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of RPRX (50.53%) is better than 99.48% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
The Operating Margin of RPRX (68.13%) is better than 99.48% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPRX is destroying value.
RPRX has more shares outstanding than it did 1 year ago.
RPRX has more shares outstanding than it did 5 years ago.
RPRX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.50, RPRX is doing good in the industry, outperforming 62.50% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 0.96. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, RPRX is doing worse than 73.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.93
WACC7.75%
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 Current ratio of 1.54. This is in the lower half of the industry: RPRX underperforms 74.48% of its industry peers.
RPRX has a Quick 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.
With a Quick ratio value of 1.54, RPRX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
RPRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.41%.
Measured over the past years, RPRX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.04% on average per year.
The Revenue has decreased by -2.50% in the past year.
The Revenue has been growing slightly by 5.58% on average over the past years.
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
RPRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.37% yearly.
Based on estimates for the next years, RPRX will show a small growth in Revenue. The Revenue will grow by 1.67% on average per year.
EPS Next Y-8.42%
EPS Next 2Y0.77%
EPS Next 3Y3.99%
EPS Next 5Y9.37%
Revenue Next Year-7.06%
Revenue Next 2Y1.69%
Revenue Next 3Y4.3%
Revenue Next 5Y1.67%
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.44, the valuation of RPRX can be described as very cheap.
92.71% of the companies in the same industry are more expensive than RPRX, based on the Price/Earnings ratio.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.94, the valuation of RPRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 93.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 2Y0.77%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.28. RPRX pays more dividend than 93.75% of the companies in the same industry.
RPRX's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 Years3
Div Non Decr Years3
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 2Y0.77%
EPS Next 3Y3.99%
ROYALTY PHARMA PLC- CL A
NASDAQ:RPRX (11/21/2024, 8:00:02 PM)
After market: 26.4 0 (0%)26.4
+0.18 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 5.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 16.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 68.13% | ||
| PM (TTM) | 50.53% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.41%
EPS 3Y12.51%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y3.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y