NASDAQ:RPRX: good value for what you're paying.

Our stock screener has singled out ROYALTY PHARMA PLC- CL A (NASDAQ:RPRX) as a stellar value proposition. NASDAQ:RPRX not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Exploring NASDAQ:RPRX's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:RPRX scores a 7 out of 10:

• RPRX is valuated cheaply with a Price/Earnings ratio of 6.35.
• Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
• RPRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.20.
• A Price/Forward Earnings ratio of 7.23 indicates a rather cheap valuation of RPRX.
• 95.38% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.60. RPRX is valued rather cheaply when compared to this.
• Based on the Price/Free Cash Flow ratio, RPRX is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
• RPRX has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:RPRX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:RPRX, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 6.93%, RPRX belongs to the top of the industry, outperforming 90.26% of the companies in the same industry.
• The Return On Equity of RPRX (17.39%) is better than 91.28% of its industry peers.
• RPRX has a Return On Invested Capital of 7.27%. This is amongst the best in the industry. RPRX outperforms 87.18% of its industry peers.
• The last Return On Invested Capital (7.27%) for RPRX is above the 3 year average (6.15%), which is a sign of increasing profitability.
• RPRX has a better Profit Margin (48.20%) than 97.95% of its industry peers.
• RPRX has a Operating Margin of 63.37%. This is amongst the best in the industry. RPRX outperforms 99.49% of its industry peers.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:RPRX has received a 6 out of 10:

• The Altman-Z score of RPRX (1.75) is better than 67.18% of its industry peers.
• RPRX has a Debt to FCF ratio of 7.03. This is amongst the best in the industry. RPRX outperforms 83.59% of its industry peers.
• RPRX has a Current Ratio of 7.90. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
• RPRX has a Current ratio of 7.90. This is amongst the best in the industry. RPRX outperforms 80.51% of its industry peers.
• RPRX has a Quick Ratio of 7.90. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
• RPRX has a Quick ratio of 7.90. This is amongst the best in the industry. RPRX outperforms 81.03% of its industry peers.

Evaluating Growth: NASDAQ:RPRX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:RPRX has achieved a 4 out of 10:

• The Earnings Per Share has grown by an nice 19.35% over the past year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of RPRX contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.