40.86 USD
+0.45 (+1.11%)
40.8569 USD
0 (-0.01%)
Overall RPRX gets a fundamental rating of 6 out of 10. We evaluated RPRX against 190 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are some minor concerns on its financial health. RPRX may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- RPRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.95%, RPRX belongs to the top of the industry, outperforming 84.74% of the companies in the same industry.
- RPRX has a better Return On Equity (11.93%) than 86.32% of its industry peers.
- RPRX has a Return On Invested Capital of 6.43%. This is amongst the best in the industry. RPRX outperforms 84.21% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RPRX is significantly below the industry average of 12.83%.
- The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(6.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 11.93% | ||
| ROIC | 6.43% |
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
1.3 Margins
- RPRX's Profit Margin of 32.55% is amongst the best of the industry. RPRX outperforms 95.26% 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 65.22%, RPRX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of RPRX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.22% | ||
| PM (TTM) | 32.55% | ||
| GM | N/A |
OM growth 3Y-2.96%
OM growth 5Y-16.96%
PM growth 3Y11.92%
PM growth 5Y-21.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RPRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RPRX has less shares outstanding
- The number of shares outstanding for RPRX has been increased compared to 5 years ago.
- RPRX has a worse debt/assets ratio than last year.
2.2 Solvency
- RPRX has an Altman-Z score of 1.71. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
- RPRX has a Altman-Z score (1.71) which is in line with its industry peers.
- RPRX has a debt to FCF ratio of 9.47. This is a negative value and a sign of low solvency as RPRX would need 9.47 years to pay back of all of its debts.
- RPRX has a Debt to FCF ratio of 9.47. This is in the better half of the industry: RPRX outperforms 79.47% of its industry peers.
- A Debt/Equity ratio of 1.34 is on the high side and indicates that RPRX has dependencies on debt financing.
- RPRX has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: RPRX underperforms 75.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.47 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.75
WACC8.58%
2.3 Liquidity
- RPRX has a Current Ratio of 3.48. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
- RPRX has a Current ratio (3.48) which is in line with its industry peers.
- RPRX has a Quick Ratio of 3.48. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
- RPRX has a Quick ratio (3.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.24% over the past year.
- Measured over the past years, RPRX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.23% on average per year.
- The Revenue has been growing slightly by 3.70% in the past year.
- Measured over the past years, RPRX shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
EPS 1Y (TTM)0.24%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%15.84%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%44.07%
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 10.53% yearly.
- The Revenue is expected to grow by 10.65% on average over the next years. This is quite good.
EPS Next Y17.31%
EPS Next 2Y12.49%
EPS Next 3Y13.48%
EPS Next 5Y10.53%
Revenue Next Year17.2%
Revenue Next 2Y9.47%
Revenue Next 3Y8.62%
Revenue Next 5Y10.65%
3.3 Evolution
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.94, which indicates a very decent valuation of RPRX.
- Compared to the rest of the industry, the Price/Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 91.05% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, RPRX is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.88 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 91.58% of the companies in the same industry.
- RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
- 83.68% of the companies in the same industry are more expensive than RPRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- 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.
- A more expensive valuation may be justified as RPRX's earnings are expected to grow with 13.48% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y12.49%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
- RPRX has a Yearly Dividend Yield of 2.34%. 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 0.46. RPRX pays more dividend than 93.16% of the companies in the same industry.
- RPRX's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
5.3 Sustainability
- RPRX pays out 49.36% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.36%
EPS Next 2Y12.49%
EPS Next 3Y13.48%
ROYALTY PHARMA PLC- CL A / RPRX FAQ
Can you provide the ChartMill fundamental rating for ROYALTY PHARMA PLC- CL A?
ChartMill assigns a fundamental rating of 6 / 10 to RPRX.
What is the valuation status for RPRX stock?
ChartMill assigns a valuation rating of 8 / 10 to ROYALTY PHARMA PLC- CL A (RPRX). This can be considered as Undervalued.
How profitable is ROYALTY PHARMA PLC- CL A (RPRX) stock?
ROYALTY PHARMA PLC- CL A (RPRX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RPRX stock?
The Price/Earnings (PE) ratio for ROYALTY PHARMA PLC- CL A (RPRX) is 9.94 and the Price/Book (PB) ratio is 3.68.
Can you provide the dividend sustainability for RPRX stock?
The dividend rating of ROYALTY PHARMA PLC- CL A (RPRX) is 5 / 10 and the dividend payout ratio is 49.36%.