ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RPRX. RPRX was compared to 192 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are concerns on its financial health. RPRX is cheap, but on the other hand it scores bad on growth.
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.
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 Return On Assets of 4.71%. This is amongst the best in the industry. RPRX outperforms 88.54% of its industry peers.
RPRX's Return On Equity of 12.37% is amongst the best of the industry. RPRX outperforms 89.58% of its industry peers.
RPRX has a Return On Invested Capital of 6.02%. This is amongst the best in the industry. RPRX outperforms 82.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RPRX is significantly below the industry average of 44.15%.
The last Return On Invested Capital (6.02%) for RPRX is above the 3 year average (5.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 12.37% | ||
| ROIC | 6.02% |
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 (37.95%) is better than 97.92% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
RPRX has a better Operating Margin (57.10%) than 98.96% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.1% | ||
| PM (TTM) | 37.95% | ||
| 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.
RPRX has less shares outstanding than it did 1 year ago.
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 1.63. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
RPRX has a better Altman-Z score (1.63) than 64.06% of its industry peers.
RPRX has a debt to FCF ratio of 28.91. This is a negative value and a sign of low solvency as RPRX would need 28.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 28.91, RPRX is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 0.95. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
RPRX's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. RPRX is outperformed by 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 28.91 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.69
WACC8.75%
2.3 Liquidity
RPRX has a Current Ratio of 1.44. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.44, RPRX is not doing good in the industry: 72.40% of the companies in the same industry are doing better.
A Quick Ratio of 1.44 indicates that RPRX should not have too much problems paying its short term obligations.
The Quick ratio of RPRX (1.44) is worse than 63.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
RPRX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.39%.
The earnings per share for RPRX have been decreasing by -18.23% on average. This is quite bad
Looking at the last year, RPRX shows a decrease in Revenue. The Revenue has decreased by -3.86% in the last 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)-6.39%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%-0.34%
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 15.63% on average per year.
Based on estimates for the next years, RPRX will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y16.84%
EPS Next 2Y14.16%
EPS Next 3Y13.83%
EPS Next 5Y15.63%
Revenue Next Year12.68%
Revenue Next 2Y8.48%
Revenue Next 3Y9.15%
Revenue Next 5Y2.2%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.05 indicates a reasonable valuation of RPRX.
Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RPRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.89, the valuation of RPRX can be described as very cheap.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RPRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
RPRX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RPRX is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.27 | ||
| 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.
A more expensive valuation may be justified as RPRX's earnings are expected to grow with 13.83% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y14.16%
EPS Next 3Y13.83%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.64%.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.32. RPRX pays more dividend than 92.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
43.83% of the earnings are spent on dividend by RPRX. This is a bit on the high side, but may be sustainable.
DP43.83%
EPS Next 2Y14.16%
EPS Next 3Y13.83%
33.01
-0.27 (-0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change1.68%
Ins Owners1.42%
Ins Owner Change0.56%
Market Cap19.03B
Analysts81.54
Price Target39.4 (19.36%)
Short Float %4.13%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP43.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.77%
Min EPS beat(2)6.65%
Max EPS beat(2)6.88%
EPS beat(4)2
Avg EPS beat(4)2.23%
Min EPS beat(4)-2.47%
Max EPS beat(4)6.88%
EPS beat(8)6
Avg EPS beat(8)6.01%
EPS beat(12)7
Avg EPS beat(12)2.5%
EPS beat(16)9
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-17.32%
Min Revenue beat(2)-20.42%
Max Revenue beat(2)-14.22%
Revenue beat(4)0
Avg Revenue beat(4)-13.96%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)-5.16%
Revenue beat(8)0
Avg Revenue beat(8)-13.67%
Revenue beat(12)0
Avg Revenue beat(12)-13.88%
Revenue beat(16)4
Avg Revenue beat(16)-9.34%
PT rev (1m)0.87%
PT rev (3m)-3.82%
EPS NQ rev (1m)48%
EPS NQ rev (3m)49.78%
EPS NY rev (1m)6.41%
EPS NY rev (3m)7.33%
Revenue NQ rev (1m)63.37%
Revenue NQ rev (3m)63.37%
Revenue NY rev (1m)3.32%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 6.89 | ||
| P/S | 8.41 | ||
| P/FCF | 72.27 | ||
| P/OCF | 6.87 | ||
| P/B | 2.74 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.1
EY12.42%
EPS(NY)4.79
Fwd EY14.51%
FCF(TTM)0.46
FCFY1.38%
OCF(TTM)4.8
OCFY14.55%
SpS3.93
BVpS12.05
TBVpS12.05
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 12.37% | ||
| ROCE | 7.62% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 6.72% | ||
| OM | 57.1% | ||
| PM (TTM) | 37.95% | ||
| GM | N/A | ||
| FCFM | 11.63% |
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 28.91 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 110.7% | ||
| Interest Coverage | -8.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 30.65% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.63 |
F-Score5
WACC8.75%
ROIC/WACC0.69
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)-6.39%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%0%
EPS Next Y16.84%
EPS Next 2Y14.16%
EPS Next 3Y13.83%
EPS Next 5Y15.63%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%-0.34%
Revenue Next Year12.68%
Revenue Next 2Y8.48%
Revenue Next 3Y9.15%
Revenue Next 5Y2.2%
EBIT growth 1Y-13.38%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year26.8%
EBIT Next 3Y16.98%
EBIT Next 5Y13.65%
FCF growth 1Y-69.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.32%
OCF growth 3Y11.13%
OCF growth 5Y10.68%