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ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis

NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD

36.37  +0.18 (+0.5%)

After market: 36.37 0 (0%)

Fundamental Rating

6

Overall RPRX gets a fundamental rating of 6 out of 10. We evaluated RPRX against 195 industry peers in the Pharmaceuticals industry. RPRX scores excellent on profitability, but there are some minor concerns on its financial health. RPRX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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7

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.
RPRX had positive earnings in each of the past 5 years.
In the past 5 years RPRX always reported a positive cash flow from operatings.
RPRX Yearly Net Income VS EBIT VS OCF VS FCFRPRX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

RPRX's Return On Assets of 6.20% is amongst the best of the industry. RPRX outperforms 90.26% of its industry peers.
RPRX's Return On Equity of 16.33% is amongst the best of the industry. RPRX outperforms 90.26% of its industry peers.
RPRX has a better Return On Invested Capital (9.14%) than 86.67% 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 14.87%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(9.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 16.33%
ROIC 9.14%
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
RPRX Yearly ROA, ROE, ROICRPRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

RPRX's Profit Margin of 48.26% is amongst the best of the industry. RPRX outperforms 98.97% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
RPRX has a better Operating Margin (83.95%) than 99.49% of its industry peers.
In the last couple of years the Operating Margin of RPRX has declined.
Industry RankSector Rank
OM 83.95%
PM (TTM) 48.26%
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
RPRX Yearly Profit, Operating, Gross MarginsRPRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 50 100

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RPRX is still creating some value.
RPRX has less shares outstanding than it did 1 year ago.
RPRX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RPRX is higher compared to a year ago.
RPRX Yearly Shares OutstandingRPRX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RPRX Yearly Total Debt VS Total AssetsRPRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 1.85 indicates that RPRX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.85, RPRX is in the better half of the industry, outperforming 65.64% of the companies in the same industry.
RPRX has a debt to FCF ratio of 27.23. This is a negative value and a sign of low solvency as RPRX would need 27.23 years to pay back of all of its debts.
RPRX's Debt to FCF ratio of 27.23 is fine compared to the rest of the industry. RPRX outperforms 76.92% of its industry peers.
RPRX has a Debt/Equity ratio of 0.99. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
RPRX has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: RPRX underperforms 71.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF 27.23
Altman-Z 1.85
ROIC/WACC1.03
WACC8.88%
RPRX Yearly LT Debt VS Equity VS FCFRPRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

RPRX has a Current Ratio of 1.56. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
RPRX has a Current ratio of 1.56. This is in the lower half of the industry: RPRX underperforms 68.72% of its industry peers.
RPRX has a Quick Ratio of 1.56. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
RPRX's Quick ratio of 1.56 is on the low side compared to the rest of the industry. RPRX is outperformed by 62.56% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.56
RPRX Yearly Current Assets VS Current LiabilitesRPRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.27% over the past year.
RPRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.23% yearly.
RPRX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.13%.
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)0.27%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%-33.67%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%47.71%

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 16.10% on average per year.
The Revenue is expected to grow by 11.82% on average over the next years. This is quite good.
EPS Next Y9.34%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%

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 accelerating: in the next years the growth will be better than in the last years.
RPRX Yearly Revenue VS EstimatesRPRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
RPRX Yearly EPS VS EstimatesRPRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.65, the valuation of RPRX can be described as very reasonable.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 91.79% of the companies in the same industry.
RPRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 7.07, the valuation of RPRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, RPRX is valued rather cheaply.
Industry RankSector Rank
PE 9.65
Fwd PE 7.07
RPRX Price Earnings VS Forward Price EarningsRPRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

RPRX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RPRX is cheaper than 78.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 73.1
EV/EBITDA N/A
RPRX Per share dataRPRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

RPRX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y11.99%
EPS Next 3Y11.79%

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5

5. Dividend

5.1 Amount

RPRX has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.05, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.82% 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 RankSector Rank
Dividend Yield 2.42%

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
RPRX Yearly Dividends per shareRPRX Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

34.60% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP34.6%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
RPRX Yearly Income VS Free CF VS DividendRPRX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B
RPRX Dividend Payout.RPRX Dividend Payout, showing the Payout Ratio.RPRX Dividend Payout.PayoutRetained Earnings

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ROYALTY PHARMA PLC- CL A

NASDAQ:RPRX (7/3/2025, 8:07:03 PM)

After market: 36.37 0 (0%)

36.37

+0.18 (+0.5%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners78.78%
Inst Owner Change0.31%
Ins Owners1.82%
Ins Owner Change47.65%
Market Cap20.45B
Analysts81.54
Price Target41.76 (14.82%)
Short Float %7.59%
Short Ratio5.91
Dividend
Industry RankSector Rank
Dividend Yield 2.42%
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP34.6%
Div Incr Years4
Div Non Decr Years4
Ex-Date05-16 2025-05-16 (0.22)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-26.51%
Min EPS beat(2)-59.9%
Max EPS beat(2)6.88%
EPS beat(4)2
Avg EPS beat(4)-12.21%
Min EPS beat(4)-59.9%
Max EPS beat(4)6.88%
EPS beat(8)5
Avg EPS beat(8)-4.37%
EPS beat(12)7
Avg EPS beat(12)-0.85%
EPS beat(16)9
Avg EPS beat(16)-3.26%
Revenue beat(2)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-14.22%
Max Revenue beat(2)16.62%
Revenue beat(4)1
Avg Revenue beat(4)-5.8%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)16.62%
Revenue beat(8)1
Avg Revenue beat(8)-8.92%
Revenue beat(12)1
Avg Revenue beat(12)-11.81%
Revenue beat(16)4
Avg Revenue beat(16)-8.94%
PT rev (1m)6.81%
PT rev (3m)6%
EPS NQ rev (1m)9.52%
EPS NQ rev (3m)10.89%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)3.71%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-3.08%
Valuation
Industry RankSector Rank
PE 9.65
Fwd PE 7.07
P/S 9.03
P/FCF 73.1
P/OCF 7.57
P/B 3.06
P/tB 3.06
EV/EBITDA N/A
EPS(TTM)3.77
EY10.37%
EPS(NY)5.14
Fwd EY14.14%
FCF(TTM)0.5
FCFY1.37%
OCF(TTM)4.8
OCFY13.21%
SpS4.03
BVpS11.9
TBVpS11.9
PEG (NY)1.03
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 16.33%
ROCE 11.57%
ROIC 9.14%
ROICexc 10.28%
ROICexgc 10.28%
OM 83.95%
PM (TTM) 48.26%
GM N/A
FCFM 12.36%
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-Score6
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF 27.23
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 106.93%
Interest Coverage -8.66
Cash Conversion N/A
Profit Quality 25.61%
Current Ratio 1.56
Quick Ratio 1.56
Altman-Z 1.85
F-Score6
WACC8.88%
ROIC/WACC1.03
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)0.27%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%-33.67%
EPS Next Y9.34%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%47.71%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%
EBIT growth 1Y102.32%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year31.02%
EBIT Next 3Y10.82%
EBIT Next 5Y14.19%
FCF growth 1Y-25.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.63%
OCF growth 3Y11.13%
OCF growth 5Y10.68%