ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
USA - NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
35.73 USD
+0.09 (+0.25%)
35.73 USD
0 (0%)
Taking everything into account, RPRX scores 5 out of 10 in our fundamental rating. RPRX was compared to 196 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are 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.
In the past 5 years RPRX has always been profitable.
Each year in the past 5 years RPRX had a positive operating cash flow.
1.2 Ratios
RPRX has a better Return On Assets (5.57%) than 89.29% of its industry peers.
The Return On Equity of RPRX (16.08%) is better than 89.80% of its industry peers.
With an excellent Return On Invested Capital value of 8.50%, RPRX belongs to the best of the industry, outperforming 85.20% 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 15.28%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(8.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.08% | ||
| ROIC | 8.5% |
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 has a Profit Margin of 44.28%. This is amongst the best in the industry. RPRX outperforms 97.96% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
RPRX's Operating Margin of 79.84% is amongst the best of the industry. RPRX outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of RPRX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.84% | ||
| PM (TTM) | 44.28% | ||
| 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.
RPRX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RPRX has been increased compared to 5 years ago.
Compared to 1 year ago, RPRX has a worse debt to assets ratio.
2.2 Solvency
RPRX has an Altman-Z score of 1.69. 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 1.69, RPRX is in the better half of the industry, outperforming 63.78% of the companies in the same industry.
The Debt to FCF ratio of RPRX is 11.22, which is on the high side as it means it would take RPRX, 11.22 years of fcf income to pay off all of its debts.
RPRX's Debt to FCF ratio of 11.22 is fine compared to the rest of the industry. RPRX outperforms 79.08% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that RPRX has dependencies on debt financing.
The Debt to Equity ratio of RPRX (1.10) is worse than 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.95
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
The Current ratio of RPRX (1.26) is worse than 75.51% of its industry peers.
A Quick Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX's Quick ratio of 1.26 is on the low side compared to the rest of the industry. RPRX is outperformed by 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.80% over the past year.
The earnings per share for RPRX have been decreasing by -18.23% on average. This is quite bad
The Revenue has been growing slightly by 3.02% 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)1.8%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%18.75%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
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 16.10% yearly.
The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y11.99%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue Next Year13.99%
Revenue Next 2Y8.43%
Revenue Next 3Y8.25%
Revenue Next 5Y11.81%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.05, the valuation of RPRX can be described as very reasonable.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 90.82% of the companies in the same industry.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 6.84.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.37% of the companies in the same industry.
RPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaper than 80.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 12.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y12.89%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 5.04, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.86% of the companies listed in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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 36.87% of its income as dividend. This is a sustainable payout ratio.
DP36.87%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
35.73
+0.09 (+0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change6.37%
Ins Owners1.82%
Ins Owner Change52.55%
Market Cap20.84B
Analysts81.54
Price Target44.14 (23.54%)
Short Float %4.23%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP36.87%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.44%
Min EPS beat(2)-59.9%
Max EPS beat(2)3.01%
EPS beat(4)3
Avg EPS beat(4)-10.84%
Min EPS beat(4)-59.9%
Max EPS beat(4)6.88%
EPS beat(8)5
Avg EPS beat(8)-4.24%
EPS beat(12)8
Avg EPS beat(12)-0.53%
EPS beat(16)9
Avg EPS beat(16)-6.35%
Revenue beat(2)2
Avg Revenue beat(2)12.26%
Min Revenue beat(2)7.9%
Max Revenue beat(2)16.62%
Revenue beat(4)2
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)16.62%
Revenue beat(8)2
Avg Revenue beat(8)-7.72%
Revenue beat(12)2
Avg Revenue beat(12)-10.9%
Revenue beat(16)4
Avg Revenue beat(16)-8.77%
PT rev (1m)3.59%
PT rev (3m)5.7%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-3.87%
EPS NY rev (1m)5.08%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)4.98%
Revenue NY rev (3m)4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 6.84 | ||
| P/S | 9.04 | ||
| P/FCF | 29.22 | ||
| P/OCF | 8.66 | ||
| P/B | 3.28 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY11.06%
EPS(NY)5.23
Fwd EY14.62%
FCF(TTM)1.22
FCFY3.42%
OCF(TTM)4.13
OCFY11.55%
SpS3.95
BVpS10.89
TBVpS9.3
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.08% | ||
| ROCE | 10.75% | ||
| ROIC | 8.5% | ||
| ROICexc | 9.3% | ||
| ROICexgc | 9.89% | ||
| OM | 79.84% | ||
| PM (TTM) | 44.28% | ||
| GM | N/A | ||
| FCFM | 30.93% |
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
ROICexc(3y)6.7%
ROICexc(5y)7.58%
ROICexgc(3y)6.7%
ROICexgc(5y)7.59%
ROCE(3y)7.57%
ROCE(5y)8.31%
ROICexcg growth 3Y-4.76%
ROICexcg growth 5Y-18.24%
ROICexc growth 3Y-4.74%
ROICexc growth 5Y-18.16%
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
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 73.45% | ||
| Interest Coverage | -8.39 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 69.86% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.69 |
F-Score7
WACC8.96%
ROIC/WACC0.95
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)92.8%
Cap/Sales(5y)95.39%
Profit Quality(3y)349.23%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.8%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%18.75%
EPS Next Y11.99%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
Revenue Next Year13.99%
Revenue Next 2Y8.43%
Revenue Next 3Y8.25%
Revenue Next 5Y11.81%
EBIT growth 1Y91.7%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year26.89%
EBIT Next 3Y14.88%
EBIT Next 5Y14.2%
FCF growth 1Y36.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.52%
OCF growth 3Y11.13%
OCF growth 5Y10.68%