40.4 USD
+0.29 (+0.72%)
40.4 USD
0 (0%)
RPRX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RPRX.
1. Profitability
1.1 Basic Checks
- In the past year RPRX was profitable.
- RPRX had a positive operating cash flow in the past year.
- Each year in the past 5 years RPRX has been profitable.
- In the past 5 years RPRX always reported a positive cash flow from operatings.
1.2 Ratios
- RPRX has a better Return On Assets (3.95%) than 84.82% of its industry peers.
- With an excellent Return On Equity value of 11.93%, RPRX belongs to the best of the industry, outperforming 86.39% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.43%, RPRX belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
- RPRX had an Average Return On Invested Capital over the past 3 years of 5.98%. This 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
- The Profit Margin of RPRX (32.55%) is better than 95.29% 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.
- RPRX's Operating Margin has declined in the last couple of years.
| 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
- 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 reduced compared to 1 year ago.
- Compared to 5 years ago, RPRX has more shares outstanding
- RPRX has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.71, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.71, RPRX is in line with its industry, outperforming 56.54% of the companies in the same industry.
- The Debt to FCF ratio of RPRX is 9.47, which is on the high side as it means it would take RPRX, 9.47 years of fcf income to pay off all of its debts.
- RPRX has a better Debt to FCF ratio (9.47) than 79.58% 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.
- With a Debt to Equity ratio value of 1.34, RPRX is not doing good in the industry: 75.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.47 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.75
WACC8.59%
2.3 Liquidity
- A Current Ratio of 3.48 indicates that RPRX has no problem at all paying its short term obligations.
- RPRX's Current ratio of 3.48 is in line compared to the rest of the industry. RPRX outperforms 56.02% of 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.
- Looking at the Quick ratio, with a value of 3.48, RPRX is in line with its industry, outperforming 58.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
- RPRX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.24%.
- RPRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.23% yearly.
- The Revenue has been growing slightly by 3.70% in the past year.
- The Revenue has been growing slightly by 4.52% on average over the past years.
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
- Based on estimates for the next years, RPRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.53% on average per year.
- 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 2Y12.38%
EPS Next 3Y13.48%
EPS Next 5Y10.53%
Revenue Next Year16.23%
Revenue Next 2Y9.06%
Revenue Next 3Y8.38%
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 9.83, which indicates a very decent valuation of RPRX.
- Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 91.10% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. RPRX is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.80, which indicates a rather cheap valuation of RPRX.
- Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 91.62% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RPRX to the average of the S&P500 Index (24.26), we can say RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
- 83.77% 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 | 24.68 | ||
| 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.
- The decent profitability rating of RPRX may justify a higher PE ratio.
- RPRX's earnings are expected to grow with 13.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y12.38%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
- RPRX has a Yearly Dividend Yield of 2.34%.
- Compared to an average industry Dividend Yield of 0.40, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RPRX pays a bit more dividend than the S&P500 average.
| 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 2Y12.38%
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 9.83 and the Price/Book (PB) ratio is 3.64.
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%.