40.41 USD
-0.33 (-0.81%)
40.75 USD
+0.34 (+0.84%)
Overall RPRX gets a fundamental rating of 6 out of 10. We evaluated RPRX against 190 industry peers in the Pharmaceuticals industry. While RPRX belongs to the best of the industry regarding profitability, 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
- RPRX had positive earnings in the past year.
- In the past year RPRX had a positive cash flow from operations.
- Each year in the past 5 years RPRX has been profitable.
- RPRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RPRX has a better Return On Assets (3.95%) than 84.74% of its industry peers.
- RPRX's Return On Equity of 11.93% is amongst the best of the industry. RPRX outperforms 86.32% of its industry peers.
- RPRX has a better Return On Invested Capital (6.43%) than 84.21% of its industry peers.
- 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 last Return On Invested Capital (6.43%) for RPRX is above the 3 year average (5.98%), which is a sign of increasing profitability.
| 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.
- RPRX has a better Operating Margin (65.22%) than 100.00% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPRX is destroying value.
- Compared to 1 year ago, RPRX has less shares outstanding
- Compared to 5 years ago, RPRX has more shares outstanding
- The debt/assets ratio for RPRX is higher compared to a year ago.
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 comparable to the rest of the 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's Debt to FCF ratio of 9.47 is fine compared to the rest 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
- A Current Ratio of 3.48 indicates that RPRX has no problem at all paying its short term obligations.
- RPRX has a Current ratio (3.48) which is in line with its industry peers.
- A Quick Ratio of 3.48 indicates that RPRX has no problem at all paying its short term obligations.
- With a Quick ratio value of 3.48, RPRX perfoms like the industry average, outperforming 57.89% 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%.
- 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.
- RPRX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
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
- The Earnings Per Share is expected to grow by 10.53% on average over the next years. This is quite good.
- RPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.65% yearly.
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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.83, the valuation of RPRX can be described as very reasonable.
- 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.
- RPRX is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 7.79 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.
- When comparing the Price/Forward Earnings ratio of RPRX to the average of the S&P500 Index (25.83), we can say RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, RPRX is valued cheaper than 83.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.69 | ||
| 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.
- RPRX has a very decent profitability rating, which 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 2Y12.49%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
- RPRX has a Yearly Dividend Yield of 2.34%.
- 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.
- 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 2Y12.49%
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 9.83 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%.