ROYALTY PHARMA PLC- CL A (RPRX)
GB00BMVP7Y09 - Common Stock
Overall RPRX gets a fundamental rating of 4 out of 10. We evaluated RPRX against 193 industry peers in the Pharmaceuticals industry. RPRX scores excellent on profitability, but there are concerns on its financial health. RPRX has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years RPRX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RPRX (6.35%) is better than 91.05% of its industry peers.
RPRX has a Return On Equity of 16.67%. This is amongst the best in the industry. RPRX outperforms 91.05% of its industry peers.
The Return On Invested Capital of RPRX (7.23%) is better than 85.79% 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 43.18%.
The 3 year average ROIC (6.15%) for RPRX is below the current ROIC(7.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 16.67% | ||
| ROIC | 7.23% |
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
With an excellent Profit Margin value of 50.53%, RPRX belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
In the last couple of years the Profit Margin of RPRX has declined.
The Operating Margin of RPRX (68.13%) is better than 99.47% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 68.13% | ||
| PM (TTM) | 50.53% | ||
| 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
RPRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, RPRX has an improved debt to assets ratio.
2.2 Solvency
RPRX has an Altman-Z score of 1.45. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
RPRX's Altman-Z score of 1.45 is fine compared to the rest of the industry. RPRX outperforms 63.68% of its industry peers.
RPRX has a Debt/Equity ratio of 0.96. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, RPRX is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.83
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.54 indicates that RPRX should not have too much problems paying its short term obligations.
The Current ratio of RPRX (1.54) is worse than 71.05% of its industry peers.
A Quick Ratio of 1.54 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX has a Quick ratio of 1.54. This is in the lower half of the industry: RPRX underperforms 63.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
RPRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.41%.
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 -2.50% 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)-14.41%
EPS 3Y12.51%
EPS 5Y-4.04%
EPS Q2Q%27.85%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y3.52%
Revenue growth 5Y5.58%
Sales Q2Q%5.35%
3.2 Future
The Earnings Per Share is expected to grow by 10.01% on average over the next years. This is quite good.
Based on estimates for the next years, RPRX will show a small growth in Revenue. The Revenue will grow by 0.24% on average per year.
EPS Next Y-7.89%
EPS Next 2Y0.95%
EPS Next 3Y3.93%
EPS Next 5Y10.01%
Revenue Next Year-7.2%
Revenue Next 2Y1.55%
Revenue Next 3Y4.48%
Revenue Next 5Y0.24%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.08, the valuation of RPRX can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 95.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RPRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.58, the valuation of RPRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 95.26% 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 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.58 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RPRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.95%
EPS Next 3Y3.93%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 3.46%.
Compared to an average industry Dividend Yield of 4.42, RPRX pays a better dividend. On top of this RPRX pays more dividend than 93.68% of the companies listed in the same industry.
RPRX's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
32.50% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP32.5%
EPS Next 2Y0.95%
EPS Next 3Y3.93%
ROYALTY PHARMA PLC- CL A
NASDAQ:RPRX (12/20/2024, 8:00:01 PM)
After market: 25.01 +0.09 (+0.36%)24.92
+0.64 (+2.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners72.03%
Inst Owner Change-0.29%
Ins Owners1.37%
Ins Owner Change0.54%
Market Cap14.68B
Analysts81.33
Price Target40.97 (64.41%)
Short Float %4.12%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Dividend Growth(5Y)N/A
DP32.5%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.09%
Min EPS beat(2)-2.47%
Max EPS beat(2)6.65%
EPS beat(4)2
Avg EPS beat(4)3.41%
Min EPS beat(4)-2.47%
Max EPS beat(4)11.63%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)7
Avg EPS beat(12)2.03%
EPS beat(16)8
Avg EPS beat(16)-8.28%
Revenue beat(2)0
Avg Revenue beat(2)-12.79%
Min Revenue beat(2)-20.42%
Max Revenue beat(2)-5.16%
Revenue beat(4)0
Avg Revenue beat(4)-14.29%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)-5.16%
Revenue beat(8)0
Avg Revenue beat(8)-17.1%
Revenue beat(12)1
Avg Revenue beat(12)-12.57%
Revenue beat(16)5
Avg Revenue beat(16)-7.41%
PT rev (1m)-10.75%
PT rev (3m)-10.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)0.58%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)2.67%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.58 | ||
| P/S | 6.48 | ||
| P/FCF | N/A | ||
| P/OCF | 5.25 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.1
EY16.45%
EPS(NY)4.46
Fwd EY17.91%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)4.75
OCFY19.06%
SpS3.85
BVpS11.66
TBVpS11.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 16.67% | ||
| ROCE | 9.15% | ||
| ROIC | 7.23% | ||
| ROICexc | 8.07% | ||
| ROICexgc | 8.07% | ||
| OM | 68.13% | ||
| PM (TTM) | 50.53% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.57%
ROA(5y)6.53%
ROE(3y)9.63%
ROE(5y)15.52%
ROIC(3y)6.15%
ROIC(5y)8.78%
ROICexc(3y)7.05%
ROICexc(5y)9.9%
ROICexgc(3y)7.05%
ROICexgc(5y)9.92%
ROCE(3y)7.78%
ROCE(5y)11.11%
ROICexcg growth 3Y-7.89%
ROICexcg growth 5Y-9.48%
ROICexc growth 3Y-7.82%
ROICexc growth 5Y-9.32%
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
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 132.9% | ||
| Interest Coverage | -9.52 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.45 |
F-Score7
WACC8.69%
ROIC/WACC0.83
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)87.81%
Cap/Sales(5y)92.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.41%
EPS 3Y12.51%
EPS 5Y-4.04%
EPS Q2Q%27.85%
EPS Next Y-7.89%
EPS Next 2Y0.95%
EPS Next 3Y3.93%
EPS Next 5Y10.01%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y3.52%
Revenue growth 5Y5.58%
Sales Q2Q%5.35%
Revenue Next Year-7.2%
Revenue Next 2Y1.55%
Revenue Next 3Y4.48%
Revenue Next 5Y0.24%
EBIT growth 1Y52.51%
EBIT growth 3Y-3.5%
EBIT growth 5Y1.81%
EBIT Next Year12.4%
EBIT Next 3Y10.5%
EBIT Next 5Y12.96%
FCF growth 1Y-153%
FCF growth 3YN/A
FCF growth 5Y-8.35%
OCF growth 1Y35.62%
OCF growth 3Y13.66%
OCF growth 5Y13.05%