ROYALTY PHARMA PLC- CL A (RPRX)
GB00BMVP7Y09 - Common Stock
We assign a fundamental rating of 5 out of 10 to RPRX. RPRX was compared to 196 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of RPRX get a neutral evaluation. Nothing too spectacular is happening here. RPRX is cheap, but on the other hand it scores bad on growth. These ratings could make RPRX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
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
Looking at the Return On Assets, with a value of 3.81%, RPRX belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
The Return On Equity of RPRX (10.40%) is better than 88.14% of its industry peers.
The Return On Invested Capital of RPRX (4.36%) is better than 81.44% of its industry peers.
RPRX had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 41.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 10.4% | ||
| ROIC | 4.36% |
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
Looking at the Profit Margin, with a value of 30.09%, RPRX belongs to the top of the industry, outperforming 95.88% of the companies in the same industry.
In the last couple of years the Profit Margin of RPRX has declined.
Looking at the Operating Margin, with a value of 42.91%, RPRX belongs to the top of the industry, outperforming 98.45% 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 | 42.91% | ||
| PM (TTM) | 30.09% | ||
| 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.
The number of shares outstanding for RPRX has been increased compared to 1 year ago.
The number of shares outstanding for RPRX has been increased compared to 5 years ago.
The debt/assets ratio for RPRX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
RPRX has a better Altman-Z score (1.55) than 63.40% of its industry peers.
The Debt to FCF ratio of RPRX is 18.96, which is on the high side as it means it would take RPRX, 18.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 18.96, RPRX is doing good in the industry, outperforming 79.38% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.17, RPRX is doing worse than 73.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 18.96 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.54
WACC8.01%
2.3 Liquidity
RPRX has a Current Ratio of 9.35. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
RPRX has a Current ratio of 9.35. This is in the better half of the industry: RPRX outperforms 79.90% of its industry peers.
A Quick Ratio of 9.35 indicates that RPRX has no problem at all paying its short term obligations.
RPRX's Quick ratio of 9.35 is fine compared to the rest of the industry. RPRX outperforms 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.35 | ||
| Quick Ratio | 9.35 |
3. Growth
3.1 Past
The earnings per share for RPRX have decreased strongly by -17.80% in the last year.
RPRX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.04% yearly.
Looking at the last year, RPRX shows a decrease in Revenue. The Revenue has decreased by -5.24% in the last year.
RPRX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.58% yearly.
EPS 1Y (TTM)-17.8%
EPS 3Y12.51%
EPS 5Y-4.04%
EPS Q2Q%14.29%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y3.52%
Revenue growth 5Y5.58%
Sales Q2Q%13.01%
3.2 Future
The Earnings Per Share is expected to grow by 9.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.67% on average over the next years.
EPS Next Y-8.51%
EPS Next 2Y0.9%
EPS Next 3Y4.03%
EPS Next 5Y9.37%
Revenue Next Year-5.58%
Revenue Next 2Y1.31%
Revenue Next 3Y4.38%
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
A Price/Earnings ratio of 7.23 indicates a rather cheap 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 93.81% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RPRX to the average of the S&P500 Index (31.77), we can say RPRX is valued rather cheaply.
A Price/Forward Earnings ratio of 6.29 indicates a rather cheap valuation of RPRX.
93.81% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
RPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.29 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaply inside the industry as 80.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of RPRX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.9%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 3.06%.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 3.83. RPRX pays more dividend than 93.81% of the companies in the same industry.
RPRX's Dividend Yield is a higher than the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
RPRX pays out 54.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.64%
EPS Next 2Y0.9%
EPS Next 3Y4.03%
ROYALTY PHARMA PLC- CL A
NASDAQ:RPRX (10/17/2024, 9:01:30 PM)
After market: 28.05 0 (0%)28.05
-0.17 (-0.6%)
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 Cap16.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 7.23 | ||
| Fwd PE | 6.29 | ||
| 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 | 3.81% | ||
| ROE | 10.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.91% | ||
| PM (TTM) | 30.09% | ||
| 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 | 1.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 9.35 | ||
| Quick Ratio | 9.35 | ||
| 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)-17.8%
EPS 3Y12.51%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.24%
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